Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week.
Broadcom (AVGO) will report earnings amid the escalating drama over its effort to buy Qualcomm (QCOM), while Adobe Systems (ADBE) will report as its stock soars to new highs. Recent IPOs Stitch Fix (SFIX) and ADT (ADT) also turn in results, while the airline and space sectors will hold key events. Economic indicators due up include an update on inflation.
Broadcom Growth To Accelerate
The chipmaker is scheduled to report its fiscal Q1 results after the market close Thursday. Analysts expect EPS of $5.03 up 39% year over year, on sales of $5.32 billion, up 28%. The projected gains would be up from growth of 32% and 17%, respectively, in the prior quarter. In addition to quarterly results, investors will be interested to hear Broadcom’s latest comments on its hostile takeover of Qualcomm and its efforts to appease U.S. national security concerns about the deal. The Committee on Foreign Investment in the United States is investigating the proposed acquisition. Broadcom is currently based in Singapore, but is in the process of moving its headquarters to the U.S.
Adobe Cloud Growth In Spotlight
The digital media and marketing software firm is set to report its fiscal Q1 results late Thursday. Wall Street is expecting EPS of $1.44 up 53%, on sales of $2.05 billion, up 22%. Investors will be looking for signs of continued momentum from Adobe’s shift to a cloud computing-based, subscription business model from licensed software. That transition is expected to lead to more predictable results and greater profitability. Adobe is currently ranked No. 25 on the IBD 50 list of top-performing growth stocks.
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Second Time Around For Stitch Fix
The online personal styling company reports fiscal Q2 results Monday after the close, and analysts expect EPS of 6 cents on revenue of $292 million. This will be Stitch Fix’s second report since going public in November. Its fiscal Q1 numbers reported in December beat forecasts but management’s forecast of falling margins amid investments into new categories sank shares in the immediate aftermath. Active clients in Q1 surged 30% from a year ago to 2.4 million users. The stock is off its all-time high of 30.07 and back below its 50-day average but well above its IPO price of 15.
ADT Reports In Competitive Market
The home security company will release Q4 results before the market opens on Thursday, marking its first such report since going public in January. Analysts expect a per-share loss of 13 cents on revenue of $1.09 billion. ADT priced its IPO at $14 a share, below the forecast of $17-$19, and share have been below that level since the stock started trading. More recently, share have come under pressure from Amazon’s (AMZN) deal last month to buy Ring, the maker of a smart doorbell that streams audio and visual to smartphones.
Top China Stock Near Buy Point
Hotel operator China Lodging (HTHT) reports Q4 results late Tuesday. Wall Street estimates aren’t available but top line growth has accelerated over the past year, as demand for leisure and business travel expands in the Chinese economy. At the end of September, the company operated a total of 3,656 hotels in 375 cities, with a primary focus on the economy and midscale segments. The stock is in a late-stage cup base with a 166.29 entry. But while breakouts from late-stage bases can work, they don’t have as high a success rate as breakouts from early-stage bases.
Coupa Loss To Worsen
The enterprise software provider reports Q4 earnings late Monday. Analysts expect per-share losses to widen to 15 cents from 5 cents a year earlier, with revenue growing 29% to $49 million. Coupa Software (COUP), whose cloud-based management platform helps companies control spending, has notched some big customer wins, such as Caterpillar (CAT) and Unilever (UL), though it competes vs. much bigger SAP (SAP) and Oracle (ORCL).
Airlines Present Amid Price-War Fears
Delta Air Lines (DAL), American Airlines (AAL), United Airlines (UAL) and others are set to present Tuesday at the JPMorgan Aviation, Transportation & Industrials Conference. The event will likely to offer a deeper look into the state of air travel demand, and management from those carriers could update their financial forecasts for the months ahead, offering a catalyst for big moves in airline stocks. The event will also come as United plans to add flights to smaller cities in the coming years and continue defending its hub airports against low-cost carriers by matching prices. Those moves have raised concerns that its rivals could cut ticket prices to compete, whittling away profits in the process.
Space Industry Giants To Gather
The top names in satellites and launch services will be at Satellite 2018 in Washington, D.C., from Monday to Thursday, as the space industry shifts to more private-sector companies and smaller satellites. Executives from Boeing (BA), Lockheed Martin (LMT), SpaceX, Airbus (EADSY), Virgin Orbit and Blue Origin are among those scheduled to speak. Several companies, including SpaceX, are already racing to deploy new constellations of satellites to provide space-based internet services.
On Tuesday, the Labor Department will report consumer price inflation for February as markets and central bankers remain vigilant over signs of quickening price growth. Data on producer inflation comes out on Wednesday, along with a monthly retail sales tally. The New York Fed and the Philly Fed will release their respective manufacturing gauges on Thursday. And on Friday, the Federal Reserve will report industrial production figures, the Commerce Department will issue housing starts data, the Labor Department will release job openings and labor turnover figures and the University of Michigan consumer sentiment survey comes out.
South By Southwest, otherwise known as SXSW, kicked off Friday, bringing together hot names in music, tech and film. Speakers include Apple’s (AAPL) Eddy Cue, YouTube CEO Susan Wojcicki, Waymo CEO John Krafcik, “The Last Jedi” director Rian Johnson, Arnold Schwarzenegger and Sen. Bernie Sanders. Expect talk of blockchain, the Time’s Up movement, and the latest in tech.
Dick’s Reports After Florida Shooting
Sports retailers Dick’s Sporting Goods (DKS) and Hibbett Sports (HIBB) report Q4 earnings on Tuesday and Friday, respectively. The results will follow Dick’s decision to stop selling assault-style rifles and raise the minimum age for gun sales to 21 in the wake of the shooting at a high school in Parkland, Fla., that killed 17 people. Both companies are also trying to expand their e-commerce platforms and find ways to navigate a landscape littered with store discounting. Wall Street expects Dick’s to report a 9% EPS drop to $1.20, with revenue up 10% to $2.726 billion. Hibbett is seen increasing its EPS by 17% to 45 cents, on revenue of $259 million, a 5% gain. Earlier this month, Foot Locker (FL) narrowly topped holiday-quarter earnings estimates, but revenue and same-store sales missed.
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