Investors Look For Retail Therapy: Investing Action Plan

Here’s your Investing Action Plan: what you need to know as an investor for the coming week. A rebound in consumer demand for retailing, just ahead of the holiday season, will be on display this week. Key retailers will likely discuss how inflationary forces, and a gummed up supply chain, are affecting them.


ServiceNow (NOW) has been consolidating for a few weeks near the buy point, and the IBD Long-Term Leader looks more attractive with the 50-day/10-week lines catching up. Nike (NKE) has a high handle entry, as the holidays will test its supply chains. NXP Semiconductors (NXPI) has gone sideways for a long time, but the car-focused chipmaker is setting up as auto output starts to rebound. Albemarle (ALB) has been trading tightly just above a prior base for the lithium play. InMode (INMD) is trading tightly above a short, wild consolidation. It could offer an aggressive entry.

Best Buy To Preview Holiday Season

Consumer electronics retailer Best Buy (BBY) will report its fiscal Q3 results early Tuesday. It also will provide its forecast for the holiday shopping season, which could be marred by product shortages because of widespread supply chain problems. Wall Street expects the Richfield, Minn.-based company to earn $1.93 a share on sales of $11.59 billion. That would translate to year-over-year declines of 6% in earnings and 2% in sales. Fiscal Q3 results could get a boost from the launch of the company’s new tech services subscription program, Best Buy Totaltech.

Slate Of Teen Retailers Report

Urban Outfitters (URBN) will report Q3 earnings on Tuesday, while Abercrombie & Fitch (ANF), American Eagle Outfitters (AEO) and Gap (GPS) report on Wednesday. FactSet analysts expect Urban Outfitters to post earnings of 84 cents a share, 8% above the year-ago quarter, on a 16% increase in sales to $1.12 billion. Views for ANF are for EPS to fall 13% to 66 cents, while sales pick up 9% to $895 million. Analysts see American Eagle EPS surging 74% to 61 cents and sales growing 19% to $1.23 billion. Estimates for Gap are for EPS to double to 50 cents and sales to climb 11% to $4.43 billion.

Discount Retailers Due

Discount retailers Dollar Tree (DLTR) and Burlington Stores (BURL) report Q3 earnings on Tuesday. Wall Street expects Dollar Tree to earn 96 cents per share, down 31%, as revenue rises 4% to $6.41 billion. Burlington is expected to earn $1.25 per share, a 331% jump, on revenue up 34% to $2.23 billion. Both retailers report as the economy’s rebound runs up against disruptions in the supply chain that have caused product delays and pushed shipping costs higher.

Deere Gives Post Strike Report

Farm equipment maker Deere (DE) is expected to report 63% higher Q3 profit of $3.89 a share on Wednesday. Meanwhile, revenue is seen jumping 22% to $10.57 billion. The strong results are coming amid the conclusion of a heated conflict with workers over pay and benefits. The company and workers agree to end a strike after forging a new six-year contract.

Dick’s Sporting Sees Growth

Dick’s Sporting Goods (DKS) will report Q3 results before the market opens Tuesday. FactSet analysts see earnings edging up 1% to $2.03 per share with sales up 3% to $2.48 billion. Supply chain shortages coupled with rising inflation have been big issues for retailers in Q3 and heading into the important holiday season.

Zoom Video’s Growth Moderates

Zoom Video Communications (ZM) reports Q3 earnings late Monday. Analysts expect EPS of $1.09, up 10% from a year earlier. Revenue will grow 31% to $1.02 billion, analysts estimate. Zoom Video stock has retreated 24% in 2021 as its growth moderates from the height of the coronavirus pandemic.

VMware And Dell Give Post-Split Update

VMware (VMW) reports Q3 earnings after the market close on Nov. 23. Dell Technologies (DELL) completed its spin-off of the enterprise software maker on Nov. 1. Analysts estimate EPS of $1.54, down 7% from a year earlier. Revenue will rise 8% to $3.1 billion, analysts estimate.

Anaplan Looks To Grow

San Francisco-based Anaplan (PLAN) reports Q3 earnings late Tuesday. Analysts expect an 11-cent per-share loss, widening from a 5-cent loss a year earlier. Revenue will climb 27% to $146.3 million, analysts estimate. Anaplan makes financial planning software.

Autodesk Earnings Seen Up 21%

Autodesk (ADSK), a maker of design and project workflow software, will post its fiscal Q3 results late Tuesday. Analysts expect the San Rafael, Calif.-based company to earn $1.26 a share, up 21% year over year, on sales of $1.12 billion, up 18%.

Keysight EPS Inches Up

Wall Street expects Keysight Technologies (KEYS) to report late Monday that earnings grew 1% to $1.64, slowing for a second-straight quarter. Revenue for the fiscal Q4 is seen growing 4% to $1.27 billion. The wireless test-and-measurement company, an offshoot of Hewlett-Packard (HPQ), has bounced back from an early pandemic hit. It beat expectations the last five quarters in a row, with EPS up 85% in Q2 and up 29% in Q3. Ahead of earnings, Keysight was just beyond the 5% buy range from a breakout past a 182.59 cup-without-handle buy point in early November, backed by a rising RS line.

In Brief

  • HP (HPQ), a PC and printer maker, will post its fiscal Q4 results late Tuesday. Analysts are forecasting HP earnings of 88 cents a share, up 42%, on sales of $15.39 billion, up 1%.
  • Pure Storage (PSTG) reports Q3 results late Tuesday. The consensus looks for earnings of 12 cents a share, vs. 1 cent in the year-ago period on revenue of $530.8 million, up 29%. Pure Storage makes high-speed storage systems for businesses and cloud computing using flash-chip technology.
  • Medtronic (MDT) early Tuesday will report its fiscal Q2 earnings. Analysts polled by FactSet expect adjusted profit of $1.29 per share and $7.98 billion in sales, up a respective 26.5% and 4.3% year over year.
  • Pinduoduo (PDD), a China e-commerce company, reports Q3 results early Friday. The consensus looks for an unadjusted loss of 7-cents a share, compared with a 10-cent loss a year ago, on revenue of $4 billion, up 90%.
  • Analog Devices (ADI), a chipmaker, will deliver its fiscal Q4 results early Tuesday. Analysts expect the company to earn $1.71 a share, up 19%, on sales of $2.23 billion, up 46%.
  • Dell Technologies (DELL), an enterprise computer maker, plans to report its fiscal Q3 results late Tuesday. Wall Street expects Dell to earn $2.30 a share, up 13%, on sales of $27.37 billion, up 16%.


Most Related Links :
newsbinding Governmental News Finance News

Source link

Back to top button