Watch These 4 Stocks Announcing Results Tomorrow - Wednesday, Dec. 21

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Micron Technology (MU): Chipmakers were amongst the top performers in what has been a historically bullish year for the markets. Some of the hottest stocks include AMD, NVidia and Applied Materials, but let’s not forget about the success of Micron Technology. The combination of roaring fundamentals with the prospect of improving future growth pushed shares higher by nearly 50% in 2016. Tomorrow’s reports should highlight the ongoing gains being made in its core DRAM and NAND products. These two sectors in particular, became victim to weakness in the PC market over the past 5 years. Its move to expand its SSD portfolio help offset this downturn. Additionally Micron recently announced that it would complete the acquisition of Taiwan’s Inotera Memories, which will immediately add to gross margins, EPS and free cash flow.

Red Hat (RHT): Red Hat is one of the few remaining companies left to report third quarter earnings. Expectations have edged higher after an encouraging second quarter report that featured beats on both the top and bottom line. The company is still seeing upside in its Linux Servers and public cloud segments which should drive top-line growth over the long term. Demand for product offerings like OpenShift and OpenStack have been positive and will also be key to driving sales. Meanwhile, continued investments and key partnerships with IBM, Dell and Intel will be pivotal in propelling adoption rates. However, sluggish IT spending and increasing competition are near term headwinds. Cloud computing and IT are heavily concentrated industries dominated by heavy hitters like Amazon, IBM and Microsoft, to name a few.

Bed Bath & Beyond (BBBY): Bed Bath & Beyond has been one of Amazon’s many victims in its historic ascension. As a result, earnings continue to slow down as the company finds new ways to compete through this changing retail environment. Over the past 4 quarters, earnings growth has fallen below zero three times while revenue growth has been flat in 3 out of 4 reports. Sluggish mall traffic, currency headwinds and frequent discounting should keep results in the gutter for the quarter to be reported and futures ones. Management remains hopeful that its omnichannel investments and the recent acquisition of One Kings Lane will help drive future growth. Fortunately for BBBY, expectations are set so low that  even the smallest positive surprise tomorrow will send the stock soaring.

Finish Line (FINL): Finish Line looks to take another step forward when it reports third quarter results tomorrow. The footwear retailer, which struggled for so many years, topped analysts estimates for 2 consecutive quarters on both the top and bottom line. The second quarter, in particular, saw comparable sales grow by 5.1% on the combination of successful inventory reductions and disciplined cost controls. Finish Line should continue to make improvements moving forward from online sales and its store in store format featured in Macy’s. Unfortunately weak mall traffic, increasing competition from Foot Locker and greater adoption of a direct to consumer model by Nike and Under Armour will put pressure on financial performance.

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing and merry christmas