Articles for tag: Investing, Stocks, US Markets

May 30, 2024

Ron Finklestien

Rising 9% This Year, What Lies Ahead For American Eagle Stock Following Q1 Earnings?

American Eagle Outfitters (NYSE: AEO), which sells men’s and women’s apparel and accessories under the American Eagle, Tailgate, Todd Snyder, and Aerie brands, is scheduled to report its fiscal first-quarter results on Wednesday, May 29. We expect the stock to likely trade higher with both revenues and earnings beating market expectations in the upcoming first quarter results. AEO stock has increased 9% from around $21 to $23 since the beginning of this year, outperforming the broader indices, with the S&P growing 11% over the same period. In sharp contrast, AEO’s peer Abercrombie & Fitch’s stock (NYSE: ANF) has seen its

May 30, 2024

Ron Finklestien

With The Stock Almost Flat This Year, Will Q1 Results Drive Gap’s Stock Higher?

Gap Inc. stock (NYSE: GPS), a specialty retailer selling casual apparel, accessories, and personal care products for men, women, and children under the Gap, Old Navy, and Banana Republic brands, is scheduled to report its first-quarter results on Thursday, May 30. We expect Gap’s stock to likely see little to no movement with revenue beating but earnings missing expectations marginally in fiscal Q1. GPS stock fell 3% since the beginning of this year, underperforming the broader indices, with the S&P growing 11% over the same period. Notably, GPS’ peer Guess (NYSE: GES) has seen its stock rise 4% over the

May 30, 2024

Ron Finklestien

Up 23% Since Beginning of This Year, Will Costco’s Strong Run Continue Following Q3 Results?

[Note: Costco’s fiscal year ends in August] Costco (NASDAQ: COST) is scheduled to report its fiscal third-quarter results on Thursday, May 30. We expect Costco stock to trade lower with revenues and earnings likely missing expectations. Costco’s stock has rallied 23% since the beginning of this year, outperforming the S&P index which grew 11% during this period. In comparison, Costco’s peer Walmart’s (NYSE: WMT) stock also grew a similar 24% over the same period. Costco has shown a consistent performance at driving revenue, coupled with its dedication to enhancing customer experience, reflecting its ability to thrive in the ever-changing retail

May 29, 2024

Ron Finklestien

Up 70% Since Beginning of This Year, Will Abercrombie’s Strong Run Continue Following Q1 Results?

Note: ANF’s FY’23 ended on February 3, 2024. Abercrombie & Fitch (NYSE: ANF), a specialty retailer selling casual clothing and footwear, is scheduled to report its fiscal first-quarter results on Wednesday, May 29. We expect ANF stock to likely trade lower with revenues and earnings missing market expectations. ANF stock has increased 72% since the beginning of this year, outperforming the broader indices, with the S&P growing 11% over the same period. Notably, ANF’s peer American Eagle Outfitters (NYSE: AEO) has seen its stock rise only 9% over the same period. The fiscal year 2023 began with low expectations for

May 22, 2024

Ron Finklestien

What Drove A Nearly 2x Rise In Boston Scientific’s Profits?

Boston Scientific (NYSE: BSX) saw its net income expand by $0.9 billion or 145% y-o-y to $1.6 billion in 2023. This can primarily be attributed to an expansion of its operating margin and lower taxes. In this note, we discuss Boston Scientific’s margin profile along with its stock performance, over the last three years. Firstly, let us look at Boston Scientific’s stock performance. BSX stock has seen extremely strong gains of 115% from levels of $35 in early January 2021 to around $75 now, vs. an increase of about 40% for the S&P 500 over this roughly three-year period. BSX

May 22, 2024

Ron Finklestien

Reasons to Hold Envestnet (ENV) Stock in Your Portfolio

Shares of Envestnet, Inc. ENV have rallied 24.7% over the past year, outperforming the 19.6% growth of the industry it belongs to. The company has an impressive track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matching once. The average beat is 9.4%. Its earnings for 2024 and 2025 are anticipated to grow 23.6% and 14.8%, respectively, year over year. Envestnet, Inc Price Envestnet, Inc price | Envestnet, Inc Quote Factors That Bode Well Envestnet’s robust recurring revenue is derived from asset and subscription models. It serves financial

May 22, 2024

Ron Finklestien

Is Johnson Controls Stock Fully Valued After 20% Gains This Year?

Johnson Controls stock (NYSE: JCI) is seeing higher levels after reports of Elliott Management – one of the largest activist funds in the world – building a position of over $1 billion in the company. JCI stock has been rising, with over 20% gains this year. Looking at a slightly longer term, JCI stock has seen strong gains of 55% from levels of $45 in early January 2021 to around $70 now, outperforming the broader S&P 500 index, which has seen 40% gains over this roughly three-year period. However, the increase in JCI stock has been far from consistent. Returns

May 22, 2024

Ron Finklestien

Will Medtronic Stock See Higher Levels Post Q4 Results After 5% Gains This Year?

Medtronic (NYSE: MDT) is scheduled to report its fiscal 2024 fourth-quarter results on Thursday, May 23 (fiscal ends in April). We expect Medtronic stock to trade sideways post-Q4 results announcement, with its revenues and earnings expected to meet the street estimates. The company should continue to benefit from an increased procedures volume and expansion of its new products. While Medtronic will likely navigate well in Q1, we think its stock has some room for growth from its current levels of around $85. Our interactive dashboard analysis of Medtronic’s Earnings Preview has more details on how the company’s revenues and earnings will likely

May 20, 2024

Ron Finklestien

Deckers (DECK) to Post Q4 Earnings: What’s in the Cards?

Deckers Outdoor Corporation DECK is likely to register an increase in the top line when it reports fourth-quarter fiscal 2024 earnings results on May 23 after market close. The Zacks Consensus Estimate for revenues is pegged at $876.1 million, which indicates an improvement of 10.7% from the prior-year reported figure. The company, renowned for its design, marketing and distribution of footwear, apparel and accessories, is expected to observe a year-over-year decrease in its bottom line. Although the Zacks Consensus Estimate for fourth-quarter earnings per share has risen by 4.2% to $2.75 in the past 30 days, it still suggests a

May 16, 2024

Ron Finklestien

Should You Pick Home Depot Stock Over Procter & Gamble?

We believe that Home Depot stock (NYSE: HD) is currently a better pick over Procter & Gamble stock (NYSE: PG), given its better prospects. Although Home Depot is a consumer cyclical and P&G is a consumer defensive company, we compare them due to their similar operating income of $20-$22 billion over the last twelve months. The decision to invest often comes down to finding the best stocks within the parameters of certain characteristics that suit an investment style. The size of profits can matter, as larger profits can imply greater market power. Since these stocks are from different sectors, comparing P/S against