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Three Stocks To Know For Next Week
Tuesday is slated to be a busy day as far as earnings go for some of Wall Street's biggest companies. Three major market players are all scheduled to announce their quarterly numbers and the results could end up surprising quite a few market observers.
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Return Of The Financials
Goldman Sachs Group (NYSE:GS) is scheduled to announce second-quarter earnings before the markets open on Tuesday morning. I would expect those results to drive the markets for the better part of the morning and set the table for the other major conference calls later in the day. Having rebounded nicely from its historical lows in late November, Goldman Sachs has seen its shares rise over 60% year-to-date to sit at $138.55. Goldman is considered by many to be the strongest of the investment banks coming out of the credit crisis and has led the charge of the financials in 2009 along with Morgan Stanley (NYSE:MS).
Analyst consensus estimates come in at $3.42 per share for the quarter, up 4.5% from just over a week ago. The pundits are expecting strong earnings from Goldman Sachs and I can't blame them; Sachs blew estimates out of the water for the previous quarter, more than doubling the $1.65 that analysts were expecting. The bank has also capitalized on the disarray in the financial sector and added to its already impressive market share, which should add to top-line figures. With a dividend yield of 1%, along with a price to book of only 1.4, Goldman Sachs looks like it will lead the financial pack in the second half of the year.
Chips and Pop?
Another industry leader reporting on Tuesday is Intel (Nasdaq:INTC). The semiconductor giant, which holds a market share of approximately 80% of the chip market, has seen its stock rise close to 30% in the past 4 months. With an impressive dividend yield of 3.5% and earnings that are the envy of its competitors. Intel is a favorite of many growth investors. Aside from the fundamentals, Intel is continuing to make strides in expanding its global reach and maintaining (if not grow) market share. The chip maker has recently announced a partnership with mobile phone maker Nokia (NYSE:NOK) to produce smartphones and similar mobile devices which will run on Intel chips. Attaching its product to the phones of the world's largest mobile phone company can only help Intel to increase earnings in the coming months and years.
And even though the company has struggled through the recession thanks to decreased orders and falling demand, Intel has continued to grow its global brand, which led to 80% of its 2008 revenues coming from outside North America. The major issue that could very well end up pummeling Intel is the massive $1.45 billion fine handed down by the European Union for allegedly breaking competition laws. Even though Intel has already launched a formal appeal, this issue is far from being resolved. (To learn more, check out The Industry Handbook: The Semiconductor Industry.)
Fast Food Nation
The world's largest restaurant company, Yum! Brands (NYSE:YUM), has shown its strength during this global recession and has solidified its place atop the fast food hierarchy. The company behind the KFC, Taco Bell and Pizza Hut brands has mopped the floor with its two largest fast food competitors, McDonald's (NYSE:MCD) and Burger King Holdings (NYSE:BKC), thus far in 2009 and I see no reason why Yum! can't continue the trend. The company has beaten EPS estimates in each of the last four quarters and has delivered on its 19 cent dividend in those quarters as well, a sign of the company's strong cash flows. Analysts are anticipating earnings to come in at 43 cents for the past quarter, and full-year earnings of $2.12, which is in-line with company guidance. With a forward P/E of just under 15 and a beta of 1.1, YUM! is positioned very well if the global economy begins to show more signs that the recession may be coming to an end.
Bottom Line
These three stocks looked poised to announce strong earnings this coming Tuesday. Doing your homework and being ahead of the pack before these industry giants hold their conference calls could put you in an enviable position going forward. (To learn more, read Strategies For Quarterly Earnings Season.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: 20 Tools For Building Up Your Portfolio
Return Of The Financials
Goldman Sachs Group (NYSE:GS) is scheduled to announce second-quarter earnings before the markets open on Tuesday morning. I would expect those results to drive the markets for the better part of the morning and set the table for the other major conference calls later in the day. Having rebounded nicely from its historical lows in late November, Goldman Sachs has seen its shares rise over 60% year-to-date to sit at $138.55. Goldman is considered by many to be the strongest of the investment banks coming out of the credit crisis and has led the charge of the financials in 2009 along with Morgan Stanley (NYSE:MS).
Analyst consensus estimates come in at $3.42 per share for the quarter, up 4.5% from just over a week ago. The pundits are expecting strong earnings from Goldman Sachs and I can't blame them; Sachs blew estimates out of the water for the previous quarter, more than doubling the $1.65 that analysts were expecting. The bank has also capitalized on the disarray in the financial sector and added to its already impressive market share, which should add to top-line figures. With a dividend yield of 1%, along with a price to book of only 1.4, Goldman Sachs looks like it will lead the financial pack in the second half of the year.
Another industry leader reporting on Tuesday is Intel (Nasdaq:INTC). The semiconductor giant, which holds a market share of approximately 80% of the chip market, has seen its stock rise close to 30% in the past 4 months. With an impressive dividend yield of 3.5% and earnings that are the envy of its competitors. Intel is a favorite of many growth investors. Aside from the fundamentals, Intel is continuing to make strides in expanding its global reach and maintaining (if not grow) market share. The chip maker has recently announced a partnership with mobile phone maker Nokia (NYSE:NOK) to produce smartphones and similar mobile devices which will run on Intel chips. Attaching its product to the phones of the world's largest mobile phone company can only help Intel to increase earnings in the coming months and years.
And even though the company has struggled through the recession thanks to decreased orders and falling demand, Intel has continued to grow its global brand, which led to 80% of its 2008 revenues coming from outside North America. The major issue that could very well end up pummeling Intel is the massive $1.45 billion fine handed down by the European Union for allegedly breaking competition laws. Even though Intel has already launched a formal appeal, this issue is far from being resolved. (To learn more, check out The Industry Handbook: The Semiconductor Industry.)
Fast Food Nation
The world's largest restaurant company, Yum! Brands (NYSE:YUM), has shown its strength during this global recession and has solidified its place atop the fast food hierarchy. The company behind the KFC, Taco Bell and Pizza Hut brands has mopped the floor with its two largest fast food competitors, McDonald's (NYSE:MCD) and Burger King Holdings (NYSE:BKC), thus far in 2009 and I see no reason why Yum! can't continue the trend. The company has beaten EPS estimates in each of the last four quarters and has delivered on its 19 cent dividend in those quarters as well, a sign of the company's strong cash flows. Analysts are anticipating earnings to come in at 43 cents for the past quarter, and full-year earnings of $2.12, which is in-line with company guidance. With a forward P/E of just under 15 and a beta of 1.1, YUM! is positioned very well if the global economy begins to show more signs that the recession may be coming to an end.
Bottom Line
These three stocks looked poised to announce strong earnings this coming Tuesday. Doing your homework and being ahead of the pack before these industry giants hold their conference calls could put you in an enviable position going forward. (To learn more, read Strategies For Quarterly Earnings Season.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Investopedia Staff
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