3 Stocks to Watch on Wednesday: Boeing Co (BA), Hewlett Packard Enterprise Co (HPE) and Coupa Software Inc (COUP)

COUP's revenues soar, HPE beats estimates and BA sees a sunnier picture in China

Is This the Beginning of a Boeing Stock Rally?

U.S. equities were crushed Tuesday as the country recovers from Hurricane Harvey while staring down the new threat of Hurricane Irma, which is roaring toward Puerto Rico and the Caribbean, and is likely to hit Florida thereafter. The S&P 500 index fell 1.1%, the Dow Jones Industrial Average lost 1.1% and the Nasdaq Composite declined by 0.9%.

3 Stocks to Watch on Wednesday: Boeing Co (BA), Hewlett Packard Enterprise Co (HPE) and Coupa Software Inc (COUP)Second-quarter earnings reports are still trickling in as the season comes to an end. Coupa Software Inc (NASDAQ:COUP) and Hewlett Packard Enterprise Co (NYSE:HPE) are a pair of companies in the spotlight following their most recent reports. Also, Boeing Co (NYSE:BA) upgraded its forecasts for an increasingly important market.

Here’s what you should know heading into Wednesday’s trade:

Hewlett Packard Enterprise Co (HPE)

HPE shares are on the rise this morning after Hewlett Packard Enterprise’s fiscal third-quarter profit and revenue figures topped analysts’ guidance.

The HP Inc (NYSE:HPQ) spinoff unveiled earnings of 15 cents per share, down significantly from the year-ago profit of $1.43 per share. Nonetheless, adjusted earnings came to 31 cents per share, which was 5 cents better than Wall Street’s expectations.

Revenues were up 3% year-over-year to $8.2 billion, beating analysts’ projections of $7.5 billion.

For the full fiscal year, Hewlett Packard Enterprise expects a loss between 7 to 11 cents per share, and an adjusted loss of $1.36 to $1.40. That includes a fourth-quarter EPS estimate between flat and 4 cents per share, or 26 cents to 30 cents on an adjusted basis.

HPE shares are up more than 2% in Wednesday’s early trade.

Coupa Software Inc (COUP)

COUP shares are getting a jolt following the company’s Q2 earnings report.

Coupa Software, which operates a cloud-based spend management program, posted an adjusted loss of 10 cents per share in its fiscal second quarter, which was narrower than analysts’ expectations of a 19-cent deficit. In the year-ago period, Coupa lost 25 cents per share.

Revenue was an improvement compared to the year-ago period by a 43% margin, coming in at $44.6 million. Wall Street was calling for revenue of $41.64 million over the three-month period.

For its current quarter, Coupa predicts that it will post a loss of 11 cents per share, which is slightly narrower than the consensus projection for a 12-cent loss. Revenues are expected to improve by 25% to $45 million, while analysts were looking for just $44.1 million.

COUP stock is up 8% ahead of Wednesday’s bell.

Boeing Co (BA)

BA shares are trickling higher this morning after the aerospace and defense company hiked its forecasts for Chinese aircraft demand.

Boeing projects that China will need “7,240 new planes valued at almost $1.1 trillion in the two decades through 2036,” Bloomberg reported Wednesday morning. Boeing last year estimated Chinese demand for 6,810 units for a 20-year period.

“We believe the Chinese carriers will carry more and more passengers to and from China so that they will grow their market share and as a result their fleet will expand,” Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, told Bloomberg.

Chinese operations currently make up about 11% of Boeing’s sales.

BA stock chart

BA shares have been tightly coiling around their 20-day moving average ever since a late July gap-up, all while working off overbought levels in the Relative Strength Index (RSI).

A breakout could see shares run to (and eclipse) all-time highs of $246.49 set about a month ago, while a breakdown likely would see shares fall at least to next resistance at the 50-day MA, which currently rests around $223.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/3-stocks-to-watch-on-wednesday-boeing-co-ba-hewlett-packard-enterprise-co-hpe-and-coupa-software-inc-coup/.

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