Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. Retail stocks will have a big week as Walmart, Target and Home Depot report, while more China-based stocks are due, led by internet giant Tencent. Ford will also unveil its highly anticipated electric F-150 as competition for electric pickup trucks heats up.
Stocks To Watch
Several Dow Jones stocks are in or near buy zones despite the recent market turbulence. Caterpillar (CAT) remains above a 237.88 buy point, and Goldman Sachs (GS) is still in buy range after clearing a 356.95 entry. JPMorgan Chase (JPM) has decisively topped a 161.79 buy point after flirting with it earlier. Dow (DOW) is at the upper end of a buy zone from a 67.37 pivot. Meanwhile, Chevron (CVX) is heading toward a 112.80 entry.
Big-Box Retailers To Report
Walmart (WMT) reports early Tuesday, while Target (TGT) reports early Wednesday. Wall Street expects Walmart to earn $1.21 per share, up 3%, as revenue slips 3% to $131.31 billion. Target’s EPS is expected to jump 254% to $2.09, while revenue increases 10% to $21.51 billion. The large retail chains report as they begin to lap last year’s pandemic-induced rush on grocery stories and shift to digital ordering. Some analysts have raised concerns about higher transportation, supply and safety costs, and say potential wage increases could hurt profits. TJX Cos. (TJX) and Ross Stores (ROST) also report during the week.
Home-Improvement Profits To Jump
Sales and profits are expected to grow as renovations and home construction continue to boom even as lumber and steel costs keep rising. Home Depot (HD) reports early Tuesday, while rival Lowe’s (LOW) reports early Wednesday. Analysts expect Home Depot to post EPS of $2.91, a 40% jump, as sales rise 21% to $34.1 billion. Meanwhile, EPS is seen growing 42% to $2.52 at Lowe’s, with revenue up 18% to $23.3 billion.
Lightning To Strike At Ford
Late Wednesday, Ford (F) will take the wraps off its first-ever, all-electric truck, the F-150 Lightning. But production won’t start until next spring, with sales at dealerships due to begin in mid-2022. The F-150 is America’s top selling vehicle, and an electric version of the pickup truck underpins Ford’s hope to dominate the market for electric vehicles. But Tesla (TSLA), General Motors (GM) and Amazon (AMZN)-backed EV startup Rivian all plan to start offering electric trucks in short order.
A day before the F-150 event, President Biden will visit the Dearborn, Mich., factory where Ford will make the electric truck and is likely to tout his $174 billion EV spending plan.
Busy Week For China Tech Stocks
Several China internet companies are getting set to report quarterly earnings, starting with Tencent Music Entertainment (TME) on Monday morning and Pinduoduo (PDD) in the evening. The estimate on TME is EPS of 9 cents on revenue of $1.2 billion. The consensus on e-commerce company Pinduoduo is a loss of 42 cents, on revenue of $3.1 billion. Internet search company Baidu (BIDU) reports Tuesday morning. Analysts estimate earnings of $1.66 a share on revenue of $4.2 billion. E-commerce giant JD.comJD reports Wednesday. And internet giant Tencent Holdings (TCEHY) reports Thursday morning. Analysts are looking for earnings of 62 cents on revenue of $20.8 billion.
Applied Materials Eyes Best Growth In Years
The semiconductor equipment vendor reports fiscal Q2 late Thursday. Analysts expect EPS to just 70% to $1.51 with sales up 37% to $5.41 billion. That would mark the best earnings growth in 15 quarters and best sales growth in 16 quarters. Applied Materials (AMAT) and other chip-gear suppliers are benefiting from a surge in investments by chipmakers to ramp up capacity amid a chip shortage.
- Palo Alto Networks (PANW) reports fiscal Q3 earnings late Thursday. Analysts estimate EPS growth of 9% to $1.28, with revenue rising 27% to $1.06 billion.
- Deckers (DECK) will report fiscal Q4 earnings late Thursday. Analysts see the EPS falling 5.3% to 54 cents, but sales are seen rising 16% to $434.6 million.
- Foot Locker (FL) reports early Friday. Analysts expect EPS to soar 258% to $1.06 with sales jumping 57% to $1.85 billion.
- Deere (DE) reports fiscal Q2 earnings early Friday. Analysts expect EPS to surge 111% to $4.46 with sales up 28% to $10.54 billion.
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