Check Other Key Stocks in the Group

For added safety, it is wise to check the industry group of your stock. You should be able to find at least one other noteworthy stock in the industry also showing good current earnings. This acts as a confirming factor. If you cannot find any other impressive stock in the group displaying strong earnings, the chances are greater that you have selected the wrong investment.

Note the date when a company expects to report its next quarterly earnings. One to four weeks prior to the report's release, a stock frequently displays unusual price strength or weakness, or simply "hesitates" while the market and other equities in the same group advance. This could give you an early clue of an approaching good or bad report. You may also want to be aware and suspicious of stocks that have gone several weeks beyond estimated reporting time without the release of an earnings announcement.