Investors get a look under the hood of some fast-moving stocks in the coming week's earnings reports. Automakers Toyota and Ferrari, both up 27% year to date in the stock market, report. The Dow's second fastest moving stock Disney, sitting on a 26% gain, reports Tuesday. Israel-based drugmaker Teva and Baltimore-based nuclear powerhouse Constellation Energy, riding gains of 34% and 67% respectively, also report.
Names Setting Up In Stock Market
Investors need to have their watchlists up to date with stocks setting up or flirting with entries. Crowd-pleaser Nvidia, as well as PulteGroup, Ares Management, Abercrombie & Fitch and Neurocrine Biosciences show bullish action. Nvidia, arguably the market's most important stock, reclaimed a key level and eyes an early buy point. Ares, after a wild earnings reaction, is close to buy points. Abercrombie could be teasing an early entry, perhaps ready for another run. PulteGroup races toward highs and a flat-base buy point, as homebuilders rebound. Neurocrine Bio is forming a flat base, testing record highs for the first time since July 2020.
Blue-Chips: Disney Looks For A Bounce
Entertainment behemoth Disney, the year's second-fastest moving stock among the Dow industrials, reports Q2 results early Tuesday. Analysts expect earnings growth will slow for the second quarter in a row, increasing 18.3% to $1.10 per share. Meanwhile, they see revenue rising 1.4% to $22.12 billion. FactSet predicts the number of Disney+ subscribers increases to 154.5 million from 149.6 million in Q1. However, that would be down from 157.8 million last year. The Street expects Disney theme park will rise 8% to $7.3 billion. Meanwhile, analysts see Disney paying an average annual fee of $2.6 billion to renew its deal with the NBA, up from $1.5 billion, the Wall Street Journal reported at the end of April.
Oil Patch: Can Occidental End Its Funk?
Occidental Petroleum reports Q1 earnings late Tuesday as U.S. oil prices retreat back below $80 per barrel. Analysts project Q1 EPS sinking 47% to 58 cents with revenue totaling $6.72 billion, down 7% vs. Q1 2023. Occidental Petroleum's earnings come after fellow Permian Basin producer Diamondback Energy announced better-than-expected first-quarter earnings and revenue this week. Investors on Saturday will find out if Warren Buffett remains hot on the stock, As Berkshire Hathaway gathers for its quarterly confab. Berkshire held a 28% share of OXY in early February. OXY shares have been consolidating since September 2022.
A Check In With Toyota, Honda And Ferrari
Investor fervor for the auto industry has cooled, turning the spotlight quietly toward Toyota. The Japanese auto giant and hybrid technology champion reports fiscal Q4 earnings on Wednesday. Near peer Honda Motor follows on Friday. Ferrari, sitting on a year-to-date stock gain of 27%, reports first-quarter results on Tuesday.
Generic Drugs: Teva Digests Big Stock Market Gains
Teva Pharmaceutical reports its first-quarter earning early Wednesday. Analysts expect adjusted earnings will climb 27.5% to 51 cents per share. Sales are projected to edge up 1.8% to $3.73 billion. Revenue from generic drugs is expected to rise in North America and Europe, though analysts call for international sales to dip slightly. Notably, sales of tardive dyskinesia treatment Austedo are projected to nearly double year over year, hitting $337 million. Teva stock is consolidating, and above its 50-day line, after running up roughly 35% this year.
Power Grid: Connecting Nukes And AI Data
Constellation Energy announces first-quarter earnings and revenue early Thursday, with analysts expecting a 417% surge in EPS, to $1.50. Projections also have sales growing 9% to $8.23 billion. Even more than the earnings, analysts have their eyes on whether Constellation, the largest nuclear power plant operator in the U.S., announces long-term contracts to site AI data centers near its nuclear plants. Amid the AI gold rush, companies are looking to procure the energy needed to power data centers, making nuclear attractive. Morgan Stanley says Constellation could sign a deal as soon as Q3. CEG is up 59% in 2024 — the third best performing stock in the S&P 500 index this year.
2 Views Into Industrial, Infrastructure Construction
Stock market investors receive views from two different angles into some of the current economy's most resilient segments. Engineering heavyweight Aecom reports late Monday, sitting in a flat base-on-base pattern. Atkore which deals with a range of industrial and power infrastructure-scale projects, reports early Tuesday and is also basing. Both companies benefit from federal infrastructure spending initiatives.
Stock Market Earnings Briefs
Monday
Vertex Pharmaceuticals is on deck to report its first-quarter earnings late Monday. The Street projects Vertex earnings of $4.08 per share, minus some items, and sales of $2.58 billion, up a respective 33.8% and 8.7%.
Tuesday
Arista Networks reports Q1 earnings after Tuesday's market close. Analysts predict 22% EPS growth, with revenue climbing 15%. Revenue growth has slowed from the mid-50s to the midteens, but could reaccelerate as cloud computing and tech giants invest in artificial intelligence infrastructure.
Crocs reports Q1 results early Tuesday. FactSet analysts predict earnings declines accelerating to a 14% drop to $2.24 per share, while revenue is seen flat at $884 million after four quarters of slowing growth.
Wednesday
Shopify reports Q1 earnings Wednesday. Analysts expect adjusted profit of 23 cents per share, up from one cent a year ago. Revenue is expected to climb 22%. Analysts are looking for momentum in the Shopify Plus business, a premium service to larger customers.
Trade Desk reports Q1 earnings late Wednesday. Analysts expect adjusted EPS to fall a penny to 22 cents with revenue rising 25% to $480 million. The stock is poised in an 11-week base.
Arm Holdings posts fiscal Q4 results late Wednesday. Analysts expect earnings of 29 cents a share on sales of $865 million in the March quarter. Arm went public on the stock market in September.
HubSpot reports Q1 earnings after Wednesday's close. Analysts see adjusted EPS up 25% from a year earlier, with revenue rising 19%. In April, a report said Salesforce.com is eyeing an acquisition of Cambridge, Mass.-based HubSpot. HubSpot's marketing software and services focus on digital channels such as blogs, internet search engines and social media.
