3 Earnings Reports You Need to Watch Next Week

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earnings reports - 3 Earnings Reports You Need to Watch Next Week

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It has been a rocky week for stocks, but still an overall good year — especially when it comes to first-quarter earnings.

3 Earnings Reports You Need to Watch Next Week (WB, TGT, CSCO)

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We’ve seen lots of beats and lots of growth. Plus, more names are on tap to report earnings next week that could keep that momentum going.

Weibo Corp (ADR) (NASDAQ:WB), Target Corporation (NYSE:TGT) and Cisco Systems (NASDAQ:CSCO) are just a few names I urge investors to keep an eye on.

Here’s what to expect from each.

Earnings Reports to Watch: Weibo (WB)

Earnings Reports to Watch: Weibo (WB)

So far this year, Weibo Corporation has been sizzling. Shares have booked more than 54% gains, contributing to the 174% gains over the last 12 months. For those not familiar, Weibo is more or less the Chinese version of Twitter Inc (NYSE:TWTR).

In fact, Chinese internet stocks across the board have been breaking out. Don’t look away, because Weibo’s next earnings report is due out May 16.

For the most recent three months, analysts expect Weibo to post a profit of 21 cents per share. That’s two pennies higher than the consensus just three months ago, and would represent 200% year-over-year growth. On the top line, 56.6% year-over-year growth is expected. Based on the company’s track record, it’s safe to say an earnings beat is expected too; Weibo has beat earnings in each of the last four quarters.

Despite the stock’s recent run, Weibo sports a forward P/E of just 32 — not too bad when compared to the 64% earnings growth expected each year long-term. With an earnings beat, I expect the momentum to continue.

Earnings Reports to Watch: Target (TGT)

Earnings Reports to Watch: Target (TGT)

Things haven’t looked quite as good for Target this year. Shares have been steadily sinking lower, losing almost a quarter of their value since the start of 2017. The company does have a new CEO and plans for remodeling and lowering costs, but that speaks more to just how much the store has been struggling. Amazon.com, Inc. (NASDAQ:AMZN) continues to be a very real competitor, while retail as a sector more broadly is facing headwinds.

For the most recent three-month period, sales are slated to contract by nearly 4% and Target is on tap to post earnings of 91 cents per share — a nearly 30% year-over-year decline. Worse, analysts were expected $1.33 just a few months ago. If Target fails to hop over that lowered bar, there could be blood in the streets.

The only silver lining is that the stock’s sell-off has upped its dividend yield to more than 4%. And while Target may be struggling to grow, it’s unlikely the established retailer will totally crash and burn. Unless there’s a new, huge red flag in the May 17 report, this could be a decent income play.

Earnings Reports to Watch: Cisco (CSCO)

Earnings Reports to Watch: Cisco (CSCO)

Cisco has been living well. The stock has gained a solid 10% this year and 25% over the last 12 months. Despite that run, shares are pretty reasonably priced. They’re trading for 13 times forward earnings, with 10% long-term earnings growth expected.

For the most recent quarter specifically, Cisco is expected to post earnings of 58 cents per share, a minimal expansion from the year-ago period. Sales are expected to contract, though, so earnings growth at all speaks to solid management skills at the company.

Meanwhile, Cisco also has a solid track record — beating Wall Street’s consensus in each of the last four quarters — and even with the stock’s gains, CSCO is yielding around 3.5%. With shares sitting right at the 50-day moving average and well above the long-term moving average, I believe an earnings beat on May 17 could be the catalyst for another breakout.

Hilary Kramer is the editor of GameChangersBreakout StocksHigh Octane Trader, Absolute Capital Return and Value Authority. She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.


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