The markets started last week off hot, but ended with a couple slight down days thanks to the one-two punch of not-so-hot corporate earnings and worse-than-expected GDP growth.
Still, despite the softness, the S&P 500 has enjoyed a more or less steady upward trend over the past year or so, tallying around 20% gains over the past 12 months. And there are plenty of individual stocks that could break the downtrend.
For instance, Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Under Armour Inc (NYSE:UAA) are all reporting their latest quarterly numbers this week — and all investors should be paying attention.
Let’s take a look at what’s in store for these picks.
Earnings to Watch: Apple (AAPL)
Apple, which has more or less risen in tandem with the S&P 500 over the past year, will report earnings on Tuesday after the market close.
The tech giant is looking to notch its third straight earnings beat–although a beat would still translate to an earnings decline. Wall Street is expecting $3.22 per share compared to last year’s $3.28 per share, and that fall is despite expectations for a slight uptick in revenue.
Apple has suffered several straight quarters of falling sales, but analysts expect a strong holiday season driven by the iPhone 7 to return the company to organic growth. Even if that growth is meager and earnings shrink slightly, I expect investors to be pleased.
Remember, Apple is no longer the growth darling it once was. But 20% gains over the last year plus a solid dividend make a pretty strong case for the stock. I think investors will be reminded of the new Apple’s appeal when earnings are released tomorrow.
Earnings to Watch: Advanced Micro Devices (AMD)
Advanced Micro Devices is another company that doesn’t have too much growth in its near-term forecast despite sales growth. Oftentimes, companies fail to grow sales, but still manage to grow earnings thanks to cost savings or accounting tricks.
But in the case of AMD, the loss per share is expected to be a penny worse than it was a year ago due to higher costs and despite double-digit sales growth.
The pain isn’t expected to end after this quarter either; the full-year earnings forecast is also in the red. But I do like AMD’s long-term prospects, as it’s introduced new products and inked new partnerships and deals, including one with Alphabet Inc (NASDAQ:GOOG,NASDAQ:GOOGL.
If AMD happens to get battered after its earnings report Tuesday, I wouldn’t hesitate to buy some shares on the cheap.
Earnings to Watch: Under Armour (UAA)
Under Armour is the only stock on this list that has earnings growth on-tap for the current quarter. And while the 4% growth Wall Street expects isn’t that mind-blowing, it’s a fraction of the growth that’s expected down the road.
Full-year earnings are expected to enjoy 13% year-over-year growth, while the five-year average is expected to top 20%. Meanwhile, sales growth is also expected to come in north of 20% and stay there in quarters to come.
So far, UAA stock has been battling some headwinds: Shares are currently right at their 50-day moving average and are under the 200-day. A good earnings report could be the catalyst needed to turn that long-term average to a floor instead of a ceiling.
Under Armour stock also reports on Tuesday.
Hilary Kramer is the editor of GameChangers, Breakout Stocks Under $10, High 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.