3 Predictions for Next Week

I went out on a limb last week, and now it's time to see how that decision played out.

I predicted that BlackBerry (NASDAQ: BBRY  ) would close lower on the week. With the company heading into its first quarterly report detailing the arrival of new devices running on its updated mobile operating system, I thought the shares were ready for a breather. The stock had already more than doubled since bottoming out last summer. The shares got crushed on Friday after reporting a surprising loss for the period. BlackBerry shares plunged 24% on the week. I was right. I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average (DJINDICES: ^DJI  ) . This has been a tricky call lately, so how did it play out this time? Well, the market bounced back this week. The Nasdaq moved 1.4% higher, and the Dow managed to close just 0.7% higher. I was right. My final call was for General Mills (NYSE: GIS  ) to beat Wall Street's income estimates in its latest quarter. The cereal giant has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a profit of $0.53 a share during the quarter, and it landed in line with where the pros were perched. I was wrong.

Two out of three? Bummer! I can do better than that.

Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

1. IMAX will close higher on the week
The summer movie season has gotten off to a strong start, and the abridged trading week that takes Independence Day off should be a great time to be a multiplex operator.

IMAX (NYSE: IMAX  ) has played a major part in beefing up box-office receipts in recent years. Patrons are willfully paying a few bucks more to screen new releases in IMAX's enhanced screenings, and that's good news for exhibitors, movie studios, and IMAX.

IMAX isn't likely to make news on its own during the week, but coverage of the strong movie season should benefit exposure to IMAX as a smart way to invest in the rebound of theatrical properties. My first call is for IMAX shares to move higher on the week.

2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not.

I'm going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery.

The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.

3.Constellation Brands will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others.

Constellation Brands (NYSE: STZ  ) is the liquor pourer behind Mondavi wines, Corona beers, Svedka vodkas, and other bartender staples. Despite the controversial nature of alcohol consumption, there really are no signs that we're drinking less these days. Constellation Brands is just giving folks what they want.

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $0.41 a share in its latest quarter, I'll whip out a "greater than" sign. History's on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let's go over the past year of earnings reports.

Quarter

EPS Estimate

EPS

Surprise

Q1 2013	$0.39	$0.40	3%
Q2 2013	$0.54	$0.71	32%
Q3 2013	$0.55	$0.63	15%
Q4 2013	$0.45	$0.47	4%

Source: Thomson Reuters.

Things can change, of course. We can start to consume less alcohol. Constellation Brands' recent acquisition to expand its beer business could always backfire if brews fall out of favor. There's also the very nature of Tuesday's quarterly report, where analysts see flat earnings growth on a mere 6% top-line uptick.

However, it's hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let's see how I fare this week.

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