3 Stocks To Watch Before The Market Opens Tomorrow (August 23, 2016)

Best Buy (BBY): Online growth has largely offset losses from lower in store and international sales. Strength in wearables, home theater and appliances have kept growth afloat while mobile phones and tablets continue to suffer. Best Buy is seeing weakness as a third party seller of iPhones and iPads, a sentiment echoed in Target’s recent report. This quarter is likely to be par for the course, but the real question will come from forward guidance. Third quarter earnings will include two key shopping events: Best Buy’s 50 year anniversary sale and back to school

Toll Brothers (TOL): Toll Brother’s stock is down nearly 28% from a year earlier but has started to show signs of life. Shares are up 15% in the past 6 months carried by 3 consecutive quarters of beating on the top and bottom line. The broader housing recovery can be largely credited with the recent bounce back. Tomorrow’s results should largely maintain the upward momentum with earnings projected to grow by 43% and sales by 21%.

The J.M. Smucker Company (SJM): Strong organic sales growth, product innovation and constant efforts to expand through acquisitions have led to robust quarterly results over the past year. Last quarter was perhaps the most surprising, beating on the bottom line by 66 cents and nearly $70 million on the top. This has contributed to the stock’s 40% jump in the last 12 months. The acquisition of Big Heart Pet Brand, launch of Dunkin K cup pods, and expanding distribution of key pet brands will contribute to tomorrow’s results.

Disclosure: None.

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