Coffee Holdings Co. (JVA) reports earnings Monday. JVA's earnings have beaten estimates about half the time and missed the other half of the time. Historically, earnings beats have led to at least a few days of strong price performance for JVA.
Stocks whose share price has recently declined tend to get the biggest bump from earnings beats and the smallest drops from earnings misses. JVA is down over 40% from its February peak, making it a good candidate for an earnings play. This is a particularly risky kind of bet to make, but the rewards from a winning bet are high.
As a bonus, JVA is a pretty solid stock, even setting earnings aside. It's rated a good quality, financially healthy, undervalued company by S&P Capital IQ.
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Apparently the earnings date I had for JVA was incorrect, and we're now looking at a 1-2 week wait before earnings.