Here’s your Investing Action Plan: what you need to know as an investor for the coming week. Key technology earnings reports are due in the pivotal cybersecurity realm as well as in enterprise software.
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Stocks To Watch: Five Diverse Stocks Near Buy Points
The recent plunges in many hot software stocks amid renewed sector rotation underscores the importance of having diversified leaders in your portfolio. Dell Technologies (DELL) has bounced from its 50-day line and is flashing an early buy signal on strong earnings. Google parent Alphabet (GOOGL) has pulled back to just below a buy point. Nucor (NUE) also has backed off a buy point, but not by much. Invitation Homes (INVH) is a new breakout. Chip equipment maker Lam Research has been steadily moving toward a buy point.
Economic Indicators In Play
Friday’s jobs report is a big one as the Federal Reserve gets ready to debate whether to accelerate its tapering of asset purchases at the Dec. 14-15 meeting. Economists expect another strong reading for November job creation, after the October report showed payrolls rising by 531,000. Other aspects of the report also could make waves. The last report showed wage growth accelerating to 4.9% as the jobless rate fell to 4.6%. Economists have been hoping to see a rebound in labor force participation after schools reopened and pandemic unemployment benefits lapsed, but so far there’s been little evidence of it.
The Institute for Supply Management’s monthly manufacturing survey index, out Wednesday at 10 a.m. ET, should show continued strength in November. The report also will offer some insight into whether the price pressures and supply-chain challenges facing producers are easing.
Enterprise Software Firms To Report
Salesforce.com (CRM) reports Q3 earnings late Tuesday. It will be the enterprise software maker’s first earnings report since the acquisition of Slack Technologies closed. Analysts expect EPS to fall 89% to 92 cents from a year ago. Salesforce revenue is expected to climb 25% to $6.8 billion, including Slack. Snowflake (SNOW) reports Q3 earnings late Wednesday. The provider of cloud-based data analytics is expected to report a loss of 6 cents per share vs. a 28-cent loss a year earlier. Revenue will jump 91% to $305.6 million, analysts estimate. DocuSign (DOCU) reports Q3 earnings after the market close Thursday. Analysts expect the maker of electronic signature software to report EPS of 46 cents, up nearly 110% from a year earlier. Revenue will jump 39% to $532.6 million, including acquisitions.
Online Security Firms Due
Cybersecurity firm Zscaler (ZS) reports fiscal Q1 earnings after the market close on Tuesday. Analysts expect EPS of 12 cents, down from 14 cents a year earlier. Revenue will jump 49% to $212 million, analysts estimate. CrowdStrike (CRWD) reports Q3 earnings after the market close on Wednesday. The cybersecurity firm’s profit is expected to rise 25% to 10 cents a share, with revenue jumping 56% to $363.6 million. Okta (OKTA) reports Q3 earnings late Wednesday. Amid its acquisition of Auth0, Okta is expected to swing to a 24-cent loss from a 4-cent profit a year earlier. Revenue will grow 50% to $327.2 million, analysts estimate.
NetApp Sees Growth
Data storage pioneer NetApp (NTAP) reports Q3 results late Tuesday. The consensus looks for EPS of $1.21, up 15%, on revenue of $1.55 billion, up 10%.The company is a leading provider of data-storage networking and management solutions, with on-premises and cloud-based applications.
Slate Of Data-Storage Reports Coming
Data analysis companies Elastic (ESTC), Splunk (SPLK) and Box (BOX) all report earnings. Elastic reports fiscal Q2 results late Wednesday, with an EPS estimate for a 16-cent loss vs. a 3-cent loss. The revenue estimate is $194.6 billion, up 34%. Splunk also reports late Tuesday. The Q3 EPS consensus looks for a 50-cent loss (vs. a 7-cent loss) on revenue of $647 million, up 16%. Splunk is undergoing a cloud transition to a software-as-a-service business model. Box reports late Tuesday. The Q3 EPS consensus is 21 cents, vs. 20 cents, on revenue of $218.6 million, up 12%.
Discount Retailers Report
Teen-centric bargain retailer Five Below (FIVE), discount chain Dollar General (DG) and closeout store Ollie’s Bargain Outlet (OLLI) report Q3 earnings this week, as discount retailers try to hold low prices amid rising supply-chain costs. Five Below reports Wednesday and is seen earning 29 cents per share, down 19%, on revenue of $562 million, up 18%. EPS for Dollar General, which reports Thursday, was expected to fall 13% to $2, with revenue up 3% to $8.48 billion. Ollie’s, also reporting Thursday, was forecast to earn 47 cents per share, a 28% drop, on revenue of $415 million, up 0.2%.
Hibbett, Genesco Results Due
Athletic gear retailer Hibbett (HIBB) and footwear retailer Genesco (GCO) report fiscal Q3 earnings on Friday. Wall Street expects Hibbett to earn $1.59 per share, a 10% gain, as revenue increases 8% to $359 million. Genesco was seen earning $1.29 per share, a 52% jump, with revenue of $576 million, up 20%.
China EV sales, Li Auto earnings on tap
China-based EV makers Nio (NIO), Xpeng (XPEV), BYD (BYDDF) and Li Auto (LI) are expected to report deliveries next week, as investors look to see if chip woes are waning. Li Auto will report Q3 earnings early Monday. FactSet analysts see the EV startup narrowing losses to 3 cents a share, from 8 cents a year ago. They see sales rocketing 207% to $1.4 billion.
In Brief
- Ambarella (AMBA), a maker of computer vision chips, plans to report fiscal Q3 earnings on Tuesday. Wall Street is modeling Ambarella EPS of 49 cents on sales of $90.3 million. That would translate to year-over-year growth of 444% in earnings and 61% in revenue.
- Zumiez (ZUMZ), an apparel retailer, will report Q3 earnings late Thursday. FactSet analysts expect EPS to fall 7% vs. a year ago to $1.08, while sales are seen growing 6% to $287.4 million.
- Citi Trends (CTRN), a retailer, will report Q3 earnings early Tuesday. FactSet analyst views are for EPS to drop 33% year over year to 45 cents on a 10.9% sales increase to $220.8 million.
- Ulta Beauty (ULTA), a cosmetics retailer, will report Q3 results late Thursday. Analysts polled by FactSet see EPS jumping 50% from the same period last year to $2.46, and sales to climb 21.5% to $1.89 billion.
- Veeva Systems (VEEV) is expected to post nearly 13% higher Q3 EPS of 88 cents on Wednesday. The cloud-based software company is seen putting up revenue of $466 million, an increase of 23% from the year-ago period.
- Kroger (KR), a grocery store chain among the top holdings of Berkshire Hathaway (BRKA), is expected to report Q3 results on Thursday. Analysts see EPS falling 7% to 67 cents on 4.7% higher revenue of $31.2 billion.
