4 Compelling Trades Ahead Of Thursday's Earnings

To identify compelling trades, Benzinga ran a list of mid-cap or larger stocks with earnings announcements happening Thursday with a beta of 1.5 or greater.

While this is a good start, a savvy trader would still research and analyze the risk/reward of each potential trade.

Assured Guaranty AGO

Assured provides insurance products to companies that want to protect against default risk. The $4.27 billion company has been in a downtrend since the middle of March. Over the past couple of weeks, the stock has set up a basing pattern.

Still well below its 50 day moving average, Assured is set up for a big upside move if it delivers a positive surprise Thursday.

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CBS CBS Since reaching a high of $68 at the beginning of March, it’s been nothing but pain for broadcasting giant CBS. Down more than 16 percent from its highs, the stock has staged a series of mini comebacks only to be beaten down again. The good news is that the stock has found a floor at current levels since the end of April.

CBS will report earnings Thursday after the market close and, like Assured, a strong report could spark a big upside move.

Darling International DAR

It's easy to love a stock that trades in a range and Darling International" has done just that since the beginning of 2014.

Its chart reveals a huge 10 percent trading range. The stock is nearing the bottom of its range, so making a long bet ahead of its Thursday earnings announcement is worth considering.

NVIDIA NVDA

NVIDIA has tried to convincingly break the $19 level since the middle of February. Multiple attempts have been unsuccessful, and it’s now sitting slightly below its 50 day moving average.

This is a stock that is primed for a big move if it breaks above $19. A strong earnings report Thursday could be that catalyst. If it breaks that $19 level, it could have some sustained upside ahead.

A bet on NVIDIA should be more than an overnight trade if it moves higher.

Disclosure: At the time of this writing, Tim Parker had no position in the companies mentioned and will not be trading these stocks ahead of earnings.