Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week.
XAutoplay: On | OffApple (AAPL), Tesla (TSLA), Square (SQ) and Grubhub (GRUB) will headline another busy week of earnings, while top shale producers will weigh in amid signs of slowing activity in the U.S. oil patch, and a fresh set of employment data come out.
Stocks To Watch
Here’s a look at five stocks that could be actionable heading into earnings.
After a wild session Thursday, Apple is finding support at the key 50-day moving average. Shares are 4.6% below a buy point at 156.75.
Universal Display (OLED) makes OLED screens, and Apple has plans for an OLED version of its upcoming phone. Universal Display is forming a cup base, with shares 7% below a 130.75 buy point.
Match Group (MTCH) is 3.7% below an entry ahead of its results. Match’s buy point is at 19.28 as a handle has formed above the 50-day line.
Grubhub, a member of Leaderboard, is flirting with being in buy range from a flat-base entry at 47.94.
And video game publisher Take-Two Interactive (TTWO) is hovering just 0.7% under an 80.64 buy point from a cup base. Take-Two successfully cleared that level on Tuesday, but has pulled back slightly.
Apple Guidance Main Focus Of Q3 Report
The tech giant’s June-quarter earnings report, due out after the market close Tuesday, is largely seen as a nonevent as investors increasingly focus on the September quarter and the expected launch of the iPhone 8. Analysts will be looking closely at Apple’s guidance for clues as to whether the company’s 11th-generation smartphone will launch on time late this quarter or be delayed until the December quarter. For fiscal Q3, Wall Street expects the company to earn $1.57 a share, up 11%, on sales of $44.89 billion, up 6%. For fiscal Q4, analysts are looking for Apple to earn $1.81 a share, up 8%, on sales of $49.21 billion, up 5%.
Tesla Production In Focus
The electric car company reports Q2 earnings after the market close Wednesday as production ramps up on the Model 3, the first of which will be delivered tonight. But doubts remain over Tesla’s ability to reach its ambitious production goals as deliveries fell to 22,000 in Q2 from 25,000 in Q1. Consensus estimates have Q2 per-share losses widening to $1.80 from $1.61 a year ago, as investment poured in to get the Model 3 ready. Revenue is seen doubling to $2.55 billion, as deliveries were up from 18,000 a year earlier.
Square’s Loss Seen Narrowing
The mobile payment company is set to report Q2 results after the market close Wednesday, and analysts see per-share losses shrinking to 5 cents from 8 cents a year ago as revenue grows 22% to $536 million. Square recently announced it will join forces with JPMorgan Chase (JPM) to boost its online payment services.
Delivery Boom For Grubhub?
The online food ordering service reports Q2 numbers on Thursday, and Wall Street expects EPS to rise 13% to 26 cents, as revenue jumps 32% to $158 million. Cowen recently upgraded Grubhub, saying competition was “in check” and that the company stands to benefit as online ordering and delivery become more popular for a restaurant industry trying attract stay-at-home diners and make up for weaker sales.
Shale Producers Face Cooling Trend
With some U.S. oil companies cutting investment forecasts amid recent dips in domestic crude production and drilling activity, top shale companies will report. On Tuesday, analysts see Diamondback Energy’s (FANG) EPS jumping 254% to 92 cents with revenue up 137% to $266.8 million. Also Tuesday, EOG Resources (EOG) is expected to swing to a profit of 11 cents per share with revenue climbing 44.6% to $2.57 billion, and Devon Energy‘s (DVN) EPS is seen soaring 433% to 32 cents, with revenue up 30% to $3.25 billion. On Wednesday, Concho Resources‘ (CXO) EPS is seen doubling to 43 cents, with revenue up 63% to $644.38 million. Oasis Petroleum‘s (OAS) per-share loss is seen as narrowing to 6 cents, with revenue up 42.5% to $255.1 million, and Parsley Energy‘s (PE) EPS is expected to jump 17% to 11 cents, with revenue climbing 107% to $219.9 million.
Employment, Economic Indicators
The Labor Department will report July job numbers on Friday, following a surprisingly robust gain of 222,000 in June. Among other job indicators leading up to that, ADP’s private-sector payroll numbers are out Wednesday, with the Challenger job-cut report following on Thursday. Other key economic gauges are due as well: pending home sales for June on Monday; personal spending and income, ISM’s manufacturing index, and construction spending on Tuesday; ISM’s nonmanufacturing index on Thursday, and the trade deficit on Friday.
Video Game Publishers
Activision (ATVI) reports Q2 results late Thursday, when analysts expect a 33% EPS decline to 30 cents on a 24.5% sales tumble to $1.21 billion. On Wednesday, Take-Two is expected to swing to a profit of 20 cents a share vs. the prior-year quarter’s loss of 21 cents a share, on a 5% increase in revenue to $287 million. Also Wednesday, analysts see “Words With Friends” parent Zynga (ZNGA) logging 2 cents EPS, up from break-even last year, as sales rise 17% to $205 million.
IAC Also Near Buy Point Ahead Of Results
Online dating service Match reports Q2 earnings late Tuesday, and EPS is expected to rise 12% to 19 cents with revenue up 5% to $316 million. Match’s growth engine has been mobile app Tinder. IAC/Interactive (IAC), which owns a majority of Match’s shares, follows on Wednesday, and EPS is expected to jump 67% to 70 cents, with revenue up 1.9% to $759 million. IAC in May announced its acquisition of Angie’s List, which will be merged with HomeAdvisor to create the largest home-improvement ratings service. Shares are looking to retake a 108.08 entry after breaking out earlier this month then dipping below buy range.
Acacia Communications (ACIA) reports Q2 earnings late Thursday, and analysts estimate that the optical-component maker’s Q2 EPS will sink 77% to 18 cents, with revenue falling 31% to $79.5 million. Growth has also slowed in China, a key market, and Acacia pre-announced on July 14 that Q2 profit and revenue would be hit by a manufacturing issue. Oclaro (OCLR), a maker of fiber-optic parts, reports fiscal Q4 earnings late Wednesday, and EPS is seen growing 54% to 17 cents, with revenue rising 18% to $148 million.
GM, Ford July Sales Seen Down
hen monthly figures come in on Tuesday, Edmunds sees an annualized rate of 16.9 million vehicles. General Motors (GM) should see July sales plunge 10.8% year over year, Fiat Chrysler (FCAU) a 7% tumble and Ford (F) a 5% slide, according to Edmunds. A glut of attractively priced, freshly off-lease vehicles is weighing on demand for new vehicles. But consumers continue to prefer SUVs, crossovers and pickup trucks over cars, pushing up average transaction prices.
Don’t Overlook These Highly Rated Companies
- Universal Display reports Q2 results after the close Thursday, and analysts expect EPS to surge 59% to 73 cents, on sales of $85.6 million, up 33%.
- Paycom (PAYC), a provider of cloud-based payroll and human-resources software, reports Q2 earnings Tuesday, and Wall Street sees EPS down 5% to 20 cents, with revenue of $96 million, a 30% jump.
- Stamps.com (STMP), a shipping and postage company, reports late Wednesday, and EPS is forecast to fall 15% to $1.65 while revenue rises 18% to $99 million.
Chip, Drug, Cyber Earnings
The week ahead will see earnings reports from a host of top semiconductor names including Cavium (CAVM), Cirrus Logic (CRUS), Macom Technology (MTSI), Microchip Technology (MCHP) and Qorvo (QRVO). Macom is up first with its fiscal Q3 results out after the close Tuesday. Cavium, Cirrus Logic and Qorvo follow with their June quarter reports after the close Wednesday. Microchip Technology will release its fiscal first-quarter results late Thursday.
Meanwhile, drugmakers Pfizer (PFE) and Allergan (AGN) are slated early Tuesday and early Thursday, respectively, and cybersecurity players Symantec (SYMC) and Qualys (QLYS) are set to report earnings late Wednesday.