3 Stocks that Could Make Huge Moves this Week
Published in: Economy & Finance
Transcript
- 1. 3 Stocks That Could Make Huge Moves This Week
- 2. MSC Industrial MSC Industrial Direct directly markets a wide range of tools to industrial customers to help them fix and maintain their equipment. It will report earnings on Wednesday morning. Currently, 11% of shares are sold short. The main concern investors have is that large customers have been where growth is coming from. While growth is certainly good, larger customers are usually able to get more favorable terms, which means that gross margins for MSC are usually smaller.
- 3. Here’s What You Should Watch Over the Short-Term • MSC Industrial is expected to report earnings of $0.86 per share. • The company expects revenues to clock in at $720 million. • For the rest of 2015, expectations are set for $3.0 billion in sales and earnings of $4.02 per share. Over the Long-Term • Pay attention to see if smaller customers start making a comeback. Last quarter, large customers accounted for a whopping 70% of sales. • Along the same lines, look to see if the company can improve on the 45.2% gross margin from last quarter.
- 4. Pier One Imports Pier One is a leading provider of house ware products, with over 1,000 locations in North America. Currently, 8% of Pier One’s shares are sold short. It is not yet crystal clear if the company will report earnings this week, but it fits with the company’s usual reporting dates. The company had to revise its first quarter guidance downward in early February, and announced the retirement of CFO Charles Turner on the same day.
- 5. Here’s What You Should Watch Over the Short-Term • Pier One is expected to report revenues of $549 million. • Earnings are expected to come in at $0.36 per share. • For the fiscal 2016 year, expectations are set for $2.0 billion in sales and earnings of $0.91 per share. Over the Long-Term There are two moving parts here: • The company expects overall comparable store sales, including e-commerce, to grow 5%. • Breaking out e-commerce alone, it came in at 12% of sales (or $58 million) last quarter. Look to see if it accounts for even more this quarter.
- 6. Bed Bath & Beyond Bed Bath & Beyond is a leading retail chain providing health and beauty products. The company is reporting earnings Wednesday after the market closes. Currently, 7% of shares are sold short. Over the last nine months, the company’s stock has advanced 36%. But the retail environment has been very tough over the past year, and investors are probably wondering how long the stock can keep it up.
- 7. Here’s What You Should Watch Over the Short-Term • Analysts are expecting BBBY to report revenue of $3.4 billion. • They are also expecting earnings per share to come in at $1.81. • For the fiscal 2016 year, expectations are set for $12.3 billion in sales with earnings of $5.43 per share. Over the Long-Term • Retail margins especially have been under pressure. Look to see how gross margins compare to the 38.4% posted last quarter, and 40.5% during the same quarter a year ago. • Comparable store sales were disappointing last quarter at 1.7%. Investors should look to see if this figure can come in north of 2.0% this quarter.
- 8. Wall Street Hacks Apple’s Products (Prepare to Profit!)