Investors should expect a big week on the stock market for economic news as well as earnings from steel, lithium, gold and construction aggregates suppliers. Reports from Cisco Systems (CSCO) and Coca-Cola (KO) start to wind down the fourth-quarter reporting season. More than a few companies due to report are holding very close to valid buy points.
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Stocks To Watch: Make Some Travel Stock Plans
Travel stocks have had a strong few months on robust travel expectations for 2023. The sector stumbled Friday On Expedia‘s (EXPE) earnings, but that’s also providing a shakeout. Delta Air Lines (DAL), Avis Budget (CAR), Airbnb (ABNB), Marriott International (MAR) and Booking Holdings (BKNG) all are near buy points, several with new handle entries. Avis, Airbnb and Marriott have earnings early in the coming week. Delta has already reported while BKNG is due later this month. DAL has a cup-with-handle buy point, but perhaps investors should use 40.44 as the new handle entry. ABNB and MAR will have new handles on Monday. BKNG should have a handle on a weekly chart.
Economic Calendar: A Busy Week Of Inflation, Housing Data
Wall Street is bracing for a big week of economic data that may run somewhat counter to recent trends of rapidly receding inflation and softer consumption. The consumer price index, out Tuesday at 8:30 a.m. ET, is expected to rise 0.5% on the month after edging up 0.1% in December. The annual inflation rate should dip to 6.2% from 6.5%. The core CPI is seen rising 0.3% on the month and 5.4% from a year ago. Retail sales for January, out Wednesday at 8:30 a.m., are expected to rise 1.7% amid stronger auto sales, following December’s 1.1% drop.
Fed Chair Jerome Powell Sticks To Disinflationary Script; S&P 500 Rises
Industrial production, out Wednesday at 9:15 a.m., is seen rising 0.5%, after falling 0.7% the prior month. Of lesser import, the NAHB Housing Market Index is due out Wednesday at 10 a.m., followed by housing starts and building permits on Thursday at 8:30 a.m. With mortgage rates moderating somewhat and mortgage applications on the rise, economists will be on the lookout for signs that housing activity has bottomed.
Stock Market Perspective: Taking A Hard-Earned Break
After a five-week advance it’s no surprise that the Nasdaq would coast a little. The S&P 500 rose in four of five previous weeks, while the Dow has simply been unable to catch a spark. On the Nasdaq 100, Fortinet (FTNT) and Dexcom (DXCM) rallied about 10% during the week. Catalent (CTLT), the S&P 500’s biggest winner, spiked 25% on a possible takeover bid.
Catalent Hits Four-Month High As Danaher Reportedly Mulls A Takeover
EV Industry: A Big Week For Lithium Miners
Lithium stocks — key players in the supply chain for electric-vehicle batteries — will soak up some limelight in the coming week, with earnings due from Livent (LTHM) on Tuesday afternoon and Albemarle (ALB) late Wednesday. In late January, Albemarle offered preliminary Q4 results and 2023 guidance, saying it expects its realized lithium price to rise 40% this year vs. 2022. Analysts expect Livent’s Q4 EPS to rise 375% to 38 cents as revenue grows 68% to $240.89 million. ALB stock is 10% below a cup-with-handle buy point, but could be actionable if it drops to test its 50-day line. LTHM stock must regain support at its 200-day line to get back on investors’ radar.
Blue Chip Earnings: Dow Starts To Wrap Up Q4
Cisco Systems reports late Wednesday, shooting for analyst targets calling for flat earnings and a 5% revenue gain. The networking gear giant has struggled over the last four quarters. Analysts also see flat earnings for Coca-Cola on Tuesday, and project a 6% revenue advance. Coke has struggled over the past three quarters. The two reports will leave only Walmart (WMT), Home Depot (HD) and Salesforce.com (CRM) to close out the Dow’s reporting season over the next couple of weeks. Nike (NKE) reports its February-ending third quarter later in March.
Commodities: Taking A Close Look At Gold
A host of gold mining stocks are set to report in the coming week, with results from Barrick Gold (GOLD) due early Wednesday and Royal Gold (RGLD) after the close. Agnico Eagle Mines (AEM), rated No. 2 in the group by IBD, reports late Thursday. Estimates see the companies reporting another EPS decline vs. a year ago, but gold mining stocks charged into the stock market’s top tier in January as gold prices edged near record highs amid hope for a Fed pivot. But with that pivot now on hold after a strong January jobs report, the stocks — and the gold price — have retraced some gains.
Takeover News: February Opens With M&A Bang As Gold Miners, REITs Pitch $28 Billion In Deals
Materials Suppliers: A 2023 infrastructure boom?
Investors receive a readout on infrastructure spending as Cleveland-Cliffs (CLF) and Vulcan Materials (VMC), report Tuesday and Thursday. Analysts forecast a 34-cent loss for Cleveland Cliffs, down from a $1.69 per share profit a year ago. The steel maker sits on eight straight quarterly profits. A target for a 2% revenue drop would be well below the average 21% gain over the last three quarters. Estimates see Vulcan posting a slim 2% rise in EPS to $1.28, but growth is expected to accelerate this year as infrastructure spending picks up.
Stock Market Upcoming Earnings
Monday
Cloud computing network gear maker Arista Networks (ANET) reports Q4 earnings after the stock market close on Feb. 13. Analysts estimate EPS of $1.21, up 47%, with revenue jumping 45% to $1.2 billion.
Solar systems components maker SolarEdge (SEDG) reports quarterly results late Monday, with analysts expecting earnings of $1.54 a share, double the year-ago period, on revenue of $3.1 billion, up 58%. SolarEdge stock has developed a cup-with-handle base.
Medpace (MEDP) is on deck to report its fourth-quarter earnings early Tuesday. Analysts polled by FactSet expect adjusted income of $1.86 per share and $386 million in sales, up a respective 38% and 25%. Clinical services provider Medpace has been trying to break out above a buy point in a 12-week base.
Cadence Design Systems (CDNS) will report fourth-quarter earnings late Monday. Targets point the maker of electronic systems design software toward earnings of 92 cents a share, up 12% year over year, on sales of $885 million, up 14%.
Tuesday
Tripadvisor (TRIP) reports Q1 results early Wednesday. The consensus is $344 million revenue, up 43%, with EPS of 60 cents. vs. a loss of 30 cents a year ago. Tripadvisor stock has formed a double-bottom base.
Akamai Technologies (AKAM) reports Q4 earnings late Feb. 14. Analysts expect profit to fall 15% to $1.26 per share. Forecasts call for revenue to come in flat, at about $905 million.
Triton International (TRTN) reports fourth-quarter financials Tuesday morning. Analysts view EPS growing 1% to $2.70 while revenue may increase 2% to $425 million. This is a significant slowdown from the average 33% earnings growth and 12% revenue increase over the last three quarters.
Restaurant Brands International (QSR) adjusted earnings are expected to climb 5.3% to 99 cents per share when it reports Q4 results Tuesday morning. Estimates say the Burger King parent company’s sales will jump 14.7% to $2.26 billion. Shares are trading just below the buy zone for a flat base after surpassing the 68.64 buy point on Jan. 27.
CAE (CAE) third quarter earnings are due Tuesday afternoon. Analysts forecasts the defense training company’s adjusted earnings will quadruple to 25 cents per share on 22% revenue growth to $1.033 billion. CAE stock is trading in a buy range after breaking out of a double-bottom base on Jan. 20.
Wednesday
Roku (ROKU) will post fourth-quarter results late Wednesday. Analysts see the streaming video platform losing $1.72 a share, vs. a year-earlier profit of 17 cents a share. Sales targets call for a 7% drop to $802 million in a difficult advertising climate. Analysts estimate Roku will add nearly 2.7 million new active accounts in the holiday quarter, bringing its total to 68.6 million.
Kraft Heinz (KHC) reports early Wednesday. Analysts expect earnings to drop 1.8% as revenue rebounds 8%. That would mark the seventh straight quarter of earnings declines but the second quarter of accelerating sales growth.
Shopify (SHOP) reports Q4 earnings before the stock market open on Feb. 15. Analysts expect the e-commerce firm to report a 1-cent loss vs. a 14-cent profit a year earlier. Analysts expect 19% revenue growth, to $1.65 billion.
Marathon Oil (MRO) announces fourth-quarter results late Wednesday. Wall Street forecasts earnings growing 9% to 84 cents per share. Meanwhile, analysts expect sales to drop 3% to $1.74 billion. Over the last three quarters, Marathon Oil has averaged 367% EPS growth and a 73% increase in revenue.
Biogen (BIIB) will announce its fourth-quarter results before the stock market opens Wednesday. Analysts forecast adjusted earnings to grow about 3% to $3.48 per share. They also call for $2.44 billion in sales, down almost 11%. The stock is in a cup-with-handle base.
Allison Transmission (ALSN) is due late Wednesday. Wall Street expects 9% EPS growth on a 5% sales gain, reflecting tough comps in part. ALSN stock is in a buy zone.
Thursday
Early Thursday, Crocs (CROX) is expect to post a 5% EPS gain on 60% revenue growth. That would mark the fourth quarter of sales acceleration. CROX stock chart shows a three-weeks-tight pattern.
Navios Maritime (NMM) profit is expected to increase after two quarters of declines when it reports Q4 results Thursday. Projections call for earnings excluding extraordinary items to jump 40% to $5.65 per share on 42.9% revenue growth.
Zebra Technologies (ZBRA) will release fourth-quarter results early Thursday. The maker of enterprise systems for managing inventory and assets aims for an analysts’ earnings target of $4.58 a share, up 1% year over year, on sales of $1.45 billion, down 1%.
Late Thursday, BJ’s Restaurants (BJRI) is seen swinging to earnings of 6 cents per share on an 18% sales gain, after a spate of earnings declines in recent quarters.
Marketing software maker HubSpot (HUBS) reports Q4 earnings after the stock market close on Feb. 16. Analysts project EPS of 83 cents, up 43% from a year earlier. Revenue is expected to rise 20% to $446.2 million.
Shake Shack (SHAK) reports fourth quarter earnings Thursday morning. The burger and milkshake chain is expected to post a flat year-over-year loss of 11 cents per share on 17% revenue growth to $238.5 million. The results would mark the second quarterly loss in a row on an average 22% sales growth over the past four quarters.
Friday
Deere (DE) reports before the stock market opens on Friday. Analysts expect a nearly 90% EPS gain, year over year, reflecting easy comps in part. Revenue is seen growing almost 29%. That would mark the second straight quarter of earnings acceleration but a sales deceleration vs. the prior quarter, its fiscal fourth quarter.
AutoNation (AN) is due early Friday. Year over year, the auto retailer is seen posting a 1% fourth quarter EPS gain, partly reflecting tough comps, despite a 1% sales decline. That would mark the fourth consecutive quarter of earnings deceleration and a sharp drop from a 17% EPS gain in the prior quarter.
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