Stocks look ready to fall Tuesday thanks to a not-missed-at-all one-two punch from China and the oil patch. The former reported an unexpectedly deep decline in exports, and the latter was on the slide once again.
Thus, it looks likely that yesterday’s slight gain of 0.09% in the S&P 500 will be clawed back today, and with it will likely be one of our stocks to watch — Shake Shack Inc (NASDAQ:SHAK). However, if you’re looking for some bullish action on Tuesday, you might get it from MannKind Corporation (NASDAQ:MNKD) and Urban Outfitters, Inc. (NASDAQ:URBN).
Here’s why:
Shake Shack Inc (SHAK)
The Manhattan-based burger chain tanked late Monday following its fourth-quarter earnings report.
SHAK did register a pair of Q4 beats, earning an adjusted 8 cents per share on $51 million in revenue, with each figure edging estimates for 7 cents per share on $50 million, respectively. Same-store sales actually did quite well vs. the Street, with comps of 11 percent trouncing expectations for 7.3%.
Unfortunately, future comps don’t look so rosy.
“Same-shack sales” are expected to register 2.5% to 3% growth in the current fiscal year, which was beneath the 3.1% expected by Wall Street analysts.
SHAK was off 7% in Tuesday’s premarket trading. Particularly of worry is Shake Shack’s high valuation despite a 55% decline from the stock’s late May 2015 peak; before today’s trading, SHAK was trading at nearly 90 times forward earnings estimates.
Urban Outfitters, Inc. (URBN)
URBN has been one of the hottest stocks of the past month-and-a-half, surging more than 30% since late January — and that looks to continue this morning following the retailer’s earnings beat.
Urban Outfitters reported earnings of 61 cents per share, which were up a penny year-over-year and beat expectations by a nickel.
Wall Street seemed to be overlooking a few things, such as an overall earnings slide from $80.3 million to $72.9 million, and flat revenues of $1.01 billion that merely met Street expectations. Comps were weak, too, with same-store sales off 2% vs. an expected drop of 1.9%.
Nonetheless, URBN shares were set to open the day up more than 10%.
MannKind Corporation (MNKD)
Biopharmaceutical company MannKind experienced an early-week surge ahead of its upcoming financial results, with MNKD shares jumping nearly 13% on Monday.
MannKind is expected to release its 2015 fourth-quarter and full-year financial results on Monday, March 14, 2016 in a conference call to discuss its latest earnings report. Analysts have a consensus price target of $3.07 on MNKD stock.
MannKind recently announced the resignation of Alfred E. Mann from the board of directors and as executive chairman. He played a pivotal role in the company, finding permanent solutions for diabetes and other diseases.
MNKD shares are up another 1.5% in Tuesday’s premarket trading.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
