When I look at companies that are getting ready to report earnings, the trade setup has to be almost perfect for me to consider making a trade ahead of the report. To me, the risk versus the reward isn't worth it most of the time. If you are trading options, the implied volatility gets bumped up and makes it such that a modest move in the right direction can still lose you money.

However, there are times when the fundamental, sentiment, and technical analysis all align. With the company set to report earnings on Thursday morning, McCormick & Co. (NYSE:MKC) is seeing just such a scenario presently.

Let's start with the fundamentals. McCormick manufactures, markets, and distributes condiments, seasoning mixes, and spices and they have seen great growth recently, especially for a consumer staple company. The company's earnings grew by 32% in the most recent quarter and are expected to grow by 16% over the course of this year. Sales grew by 19% last quarter and are expected to grow by 13% on a year over year basis.

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