Deere & Company (DE): Deere has a consistent history of beating on both the top and bottom line. In each of the past 4 quarters both earnings and revenues have topped expectations. However, the bar has been relatively low each quarter, and those beats are not reflective of growth. In fact, growth has progressively slowed down during this winning streak. Last quarter printed a 38% decline on the bottom line and 21% on the top. Tomorrow’s report is expected to deliver similar results thanks to low commodity prices, stagnant farm income and unfavorable foreign exchange translation.  

Foot Locker (FL): Foot Locker is coming off a weaker than expected first quarter but tomorrow’s results are on pace to reconcile those losses. Much of its success can be credited to the growing popularity of basketball shoes. Foot Locker has established itself as the preeminent mall-based supplier of basketball shoes, leaps and bounds ahead of close competitor Finish Line. This distinct segment accounts for a large portion of its sales with yearly releases of Michael Jordan’s and LeBron James’s signature shoes driving those gains. Foot Locker is more than proficient in several of the other lines it carries as well, mainly running and casual footwear. The biggest concern is its high exposure to international markets. Roughly 30% of its revenues are generated from business outside of the United States.  

The Estée Lauder Companies (EL): Cosmetics and beauty products have been a favorite for investors in recent quarters. Names such as Ulta, Elizabeth Arden and Estee Lauder continue to make significant strides stimulating growth. Share prices have been close to follow with all 3 stocks up double digits in the past three months. Tomorrow’s report from Estee Lauder is expected to reinforce the trend up. Solid organic sales growth, frequent product innovations and cost cutting measures have positioned the company for success.