Best Growth Stocks October 2021

Oftentimes, that can be institutional activity. We’ll go over what that looks like in a bit. But, the 5 stocks we see as long-term candidates are NFLX, PYPL, UPST, ASML, & TSLA.

For MAPsignals, we believe that Big Money trading can alert you to the forward fundamental picture of a stock. We want the odds on our side when looking for the highest quality stocks.

Up first is Netflix, Inc. (NFLX), which is the leader in on-demand video.

Strong growth candidates tend to have strong performance. Check out NFLX:

  • YTD performance (+16.68%)
  • Historical big money signals

Just to show you what our Big Money signal looks like, have a look at the top buy signals Netflix has made the past few years.

Blue bars are showing that NFLX was likely being bought by a Big Money player according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

But, what about fundamentals? As you can see, Netflix’s revenue numbers have been strong:

  • 3-year sales growth rate (+28.9%)
  • 3-year earnings growth rate (+71.92%)

Next up is PayPal Holdings, Inc. (PYPL), which is a leading digital payments firm.

Check out these technicals for PYPL:

  • YTD performance (+25.2%)
  • Historical big money signals

Let’s look long-term. These are the top buy signals PayPal has made since 2015. Clearly the Big Money has been consistent for years:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Let’s look under the hood. As you can see, PayPal has grown revenues massively:

  • 3-year sales growth rate = +17.96%
  • 3-year earnings growth rate = +36.06%

Another growth name is Upstart, Inc. (UPST), which is a lending platform.

Strong candidates for growth usually have big money buying the shares. Upstart has that. Also, the stock has been a rocket:

  • YTD performance (+544%)
  • Recent Big Money signals

Below are the big money signals Upstart has made since 2019. It’s a newer listing with mega juice!

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Now let’s look under the hood. Upstart’s sales growth is impressive. I expect more growth in the coming years:

  • 3-year sales growth rate = +60.28%
  • 3-year earnings growth rate = +18.32%

Number 4 on the list is ASML Holding NV ADR (ASML), which is a huge semiconductor firm.

Here are the technicals important to me:

  • YTD performance (+77.2%)
  • Historical big money signals

Below are the big money signals for ASML since 2015:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Let’s look under the hood. ASML has been growing nicely:

  • 3-year sales growth rate = +16.45%
  • 3-year earnings growth rate = +21.9%

Our last growth candidate is Tesla, Inc. (TSLA), which is the leader in the EV space.

Check out these technicals:

  • YTD performance (+6.7%)
  • Historical big money signals

Tesla is just now starting to crank with strong fundamentals, that’s why there’s few Big Money signals:

Chart, histogram Description automatically generated

Source: www.MAPsignals.com

Now look at these juicy growth numbers:

  • 3-year sales growth rate = +41.78%
  • 3-year earnings growth rate = +33.26%

The Bottom Line

NFLX, PYPL, UPST, ASML, & TSLA represent top growth stocks for October 2021. Strong fundamentals and big money buy signals make these stocks worthy of extra attention.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds long positions in NFLX, PYPL, & TSLA in personal accounts and long positions in NFLX, PYPL, & UPST in managed accounts. He holds no positions in ASML at the time of publication.

Investment Research Disclaimer

Tesla Shares Jump By 2.6% Following A Jump In Vehicle Sales In China

The shares of Tesla are up by over 2% today after the latest figures show that vehicle deliveries in China improved for the month of August.

Tesla’s Auto Sales In China Improved Last Month

Electric car manufacturer Tesla recorded an increase in sales last month in China. According to the latest reports, the company sold 44,264 China-made vehicles. The figures included 31,379 that were exported.

According to the China Passenger Car Association (CPCA) earlier today, local sales of Tesla vehicles in China rose by 12,885 cars last month. This is an improvement to the 8,621 cars sold in July. The report added that Tesla’s sales in the first month of a new quarter are usually lower than the preceding two months.

Tesla sold 32,968 China-made vehicles, a decrease from the 33,155 units sold in June. The electric car company has been facing increased scrutiny from regulators in China in recent months. The added competition from local electric vehicle manufacturers. Tesla had to introduce a cheaper version of its Model Y, and it also decreased the starting price for Model 3 sedans.

Tesla’s performance last month was still below that of other leading electric vehicle manufacturers. BYD sold a total of 60,858 electric vehicles in August, and General Motors’ China joint venture with SAIC Motor sold over 43,000 units.

The CPCA revealed that passenger car sales last month in China were around 1.5 million. The sales are down by 14.7% from the same period last year.

TSLA Shares Up By 2%

The shares of Tesla went up by over 2% at Wednesday’s pre-trading session. The rally came after the company delivered improved vehicle sales in the first month of the third quarter. At the time of this report, Tesla’s TSLA is trading at $756 per share.

TSLA stock chart. Source: FXEMPIRE

Year-to-date, TSLA is up by less than 10%. Tesla’s stock started trading at $705 at the beginning of the year. However, it has been up by over 8% since then, and it is now trading at $756.

S&P 500 Looks Ready To Move Higher As Traders Stay Bullish

Traders Ignore Valuation Concerns And Continue To Buy Stocks

S&P 500 finished the previous week near all-time high levels as traders remained optimistic despite worries about the potential reduction of Fed’s asset purchase program.

The stock market remains driven by available liquidity, as well as FOMO (fear of missing out) and TINA (there is no alternative). Meanwhile, the yield of 10-year Treasuries remains stuck near 1.30% which is bullish for stocks. The U.S. Dollar Index has pulled back from recent highs which is also bullish for the stock market, but it should be noted that fluctuations of the American currency had little impact on U.S. stock market in 2021.

Some analysts speculated that S&P 500 will find itself under pressure after the end of the earnings season as stocks would lack catalysts to move higher. In addition, September has been (on average) the worst month for S&P 500 in the last thirty years. However, the stock market started the month with a test of new highs which indicated that traders remained bullish despite problems like the spread of the Delta variant of coronavirus or the potential reduction of Fed’s asset purchase program.

As is often the case in the stock market, there is no pullback when too many people are waiting for such a pullback. The last chance to “buy stocks at a discount” was in mid-August, and this pullback was quickly bought. The two other pullbacks which happened during this summer were very quickly bought as well. This indicates that there are many traders on sidelines who use any pullback to buy stocks. When many traders want to buy and few traders want to sell, a correction cannot occur.

Obviously, many stocks are generously valued by the market. Tesla is trading at more then 105 forward P/E , and it remains well below yearly highs! Netflix is valued at more than 45 forward P/E after the recent rally.

The risks for high-flying growth stocks have been recently highlighted by Zoom which issued disappointing guidance for the third quarter and lost about 17% of market capitalization in just one trading session. However, even Zoom shares have found some support in recent trading sessions as traders rushed to buy the stock after the major pullback despite the fact that it is valued at more than 60 forward P/E while analyst estimates have started to move lower.

In this liquidity-driven market, the Fed is one of the main players. So far, the Fed was successful in managing market’s expectations. Fed Chair Jerome Powell remained very dovish and calmed markets on rare ocassions of small panic.

Powell has a more challenging task in front of him as the Fed will have to cut its asset purchase program in the upcoming months. Even if the Fed decides that it’s too early to announce tapering at its meeting on September 22, it will still have to reduce support to markets at the beginning of the next year to avoid pushing inflation above reasonable levels.

It should be noted that traders may stay bullish and bet on dovish comments from Powell up until the time he finally says that it is time to reduce the asset purchase program. In this light, the market may experience several months of calm, bullish trading in case the Fed keeps the current support intact at its next meeting.

The current bullish trend is strong, and traders have been “trained” to buy pullbacks. A change of trend demands strong catalysts, and there are no such catalysts at this point. The situation may change in case inflation gets out of control, Fed has to reduce its asset purchase program at a very fast pace while Delta variant forces new lockdowns, but this negative scenario is not the base case for the market right now.

Technical Analysis

sp 500 september 6 2021

Let’s take a look at the weekly chart. S&P 500 is moving higher in a rather tight upside channel, and any attempt to settle below the low end of this channel is quickly bought.

RSI is in the overbought territory and the risks of a pullback are increasing. However, RSI has been in the overbought territory for several weeks and nothing serious happened as pullbacks have been quickly bought.

sp 500 september 6 2021 daily

On the daily chart RSI remains in the moderate territory which is good for the continuation of the current upside trend. Pullbacks are more visible on the daily chart, but it is obvious that they were not big at all as the bullish trend remained strong.

This is the type of the market when being bearish and trying to short tops leads to poor results. At one point, the bears will be right, but they can lose a lot of money trying to find the true top. Put simply, the trend remains bullish until proven otherwise. The Fed may break the trend by reducing support too quickly, but it has been very supportive in previous months and will likely remain very cautious when it finally begins to reduce its asset purchase program.

For a look at all of today’s economic events, check out our economic calendar.

Why Tesla Stock Is Trading At Multi-Month Highs

Tesla Stock Moves Higher As Traders Stay Bullish Despite Lofty Valuation

Shares of Tesla moved to levels last seen back in April and continue to move higher as traders bet that company’s profits will continue to grow despite problems faced by the auto industry due to chip shortage.

Interestingly, shares of established automakers like General Motors or Ford have been under pressure in recent weeks, so traders continue to choose Tesla despite its lofty valuation.

Analyst estimates have been moving higher in recent weeks, which is bullish for Tesla stock. Currently, analysts expect that Tesla will report earnings of $5.3 per share in 2021 and $6.97 per share in 2022, so the stock is trading at 106 forward P/E.

What’s Next For Tesla Stock?

Analysts expect that Tesla’s profits will continue to grow at a fast pace, but the pace of growth cannot explain the valuation provided by the market. As usual, traders are ready to take the long-term view and bet that Tesla will be the dominant force in the electric vehicle market for years to come.

It should be noted that S&P 500 is trading at all-time high levels, and Tesla is one of those mega-cap stocks that is trading well below its all-time highs. Back in January, Tesla stock made an attempt to settle above the $900 level but lost momentum and pulled back towards the $550 level before rebounding to $740.

It is likely that Tesla receives support from traders who are willing to bet that mega-cap stocks will remain the main driver of the market and search for shares which trade far from their all-time high levels. In the current market environment, traders are ready to ignore valuation concerns, and Tesla stock has decent chances to gain additional upside momentum in the upcoming weeks unless there is a broad market pullback.

For a look at all of today’s economic events, check out our economic calendar.

Stock Index Futures Play It Cautious Heading Into Monday

After a rocky week in the markets, investors are hoping to turn the ship around. On Friday, the three major indices raced ahead. It was not enough to undo the recent damage, however.

The Dow Jones Industrial Average added more than 200 points to sit atop the 35K level once again, while the S&P 500 gained nearly 1% and the Nasdaq advanced slightly more than 1%. Despite Friday’s gains, the Dow, S&P 500 and tech-heavy Nasdaq were lower on the week. Market volatility is likely to persist.

Investors were faced with the reality that the Federal Reserve will likely begin tapering its bond-buying program sooner than later, not to mention the looming threat of the delta variant, all of which weighed on stocks. Geopolitical uncertainties tied to the unraveling of Afghanistan have also pressured stocks.

The WTI crude oil price also took a hit, falling close to 9% last week to just over USD 62 per barrel. In crypto land, the bitcoin price rallied and inched closer to the psychologically important USD 50K level over the weekend.

Stock index futures played it cautiously ahead of Monday’s open and were mostly unchanged from Friday’s session.

Stocks to Watch

  • Investors have been rewarding shares of Tesla. The EV maker held an artificial intelligence day last week and revealed plans for an AI-fueled humanoid robot. Tesla shares were up 1% on Friday.
  • Nvidia’s plan to acquire U.K.-based chip company ARM in a USD 40 billion deal is facing regulatory scrutiny. Nonetheless, shares of Nvidia closed higher by 5% on Friday.
  • Shares of athletic retailer Foot Locker advanced 5% on Friday on the heels of stronger than expected earnings and a robust outlook for the rest of the year.
  • Oil stocks including the likes of ExxonMobil will be in focus after the oil price weakness.

Look Ahead

On Monday, new and existing home sales data will be released for the month of July. Wells Fargo economists predict new home sales rose last month, breaking a three-month stretch of declines, thanks to higher inventories at slightly more attractive home prices.

All eyes will be on the Federal Reserve Jackson Hole event, though the symposium will be held virtually this year due to the health crisis. Fed Chairman Jerome Powell’s highly anticipated speech will be live-streamed on Friday. The theme of this year’s speech will be “Macroeconomic Policy in an Uneven Economy.”

Musk Says Tesla Likely to Launch Humanoid Robot Prototype Next Year

Speaking at Tesla’s AI Day event, the billionaire entrepreneur said the robot, which stands around five foot eight inches tall, would be able to handle jobs from attaching bolts to cars with a wrench, or picking up groceries at stores.

The robot would have “profound implications for the economy,” Musk said, addressing a labour shortage. He said it was important to make the machine not “super-expensive.”

The AI Day event came amid growing scrutiny over the safety and capability of Tesla’s “Full Self-Driving” advanced driver assistant system.

Musk didn’t comment on that scrutiny over the safety of Tesla technology but said that he was confident of achieving full self-driving with higher safety than humans using current in-car cameras and computers.

U.S. safety regulators earlier this week opened an investigation into Tesla’s driver assistant system because of accidents where Tesla cars crashed into stationary police cars and fire trucks.

Two U.S. senators have also called on the Federal Trade Commission to investigate Tesla’s claims for its “Full Self-Driving” system.

At the event on Thursday Tesla also unveiled chips it designed in-house https://www.reuters.com/business/autos-transportation/tesla-unveils-own-chip-ai-training-computer-dojo-2021-08-20 for its high-speed computer, Dojo, to help develop its automated driving system. Musk said Dojo would be operational next year.

He said Tesla will also introduce new hardware for its self-driving computer for its Cybertruck electric pick-up truck in “about a year or so.”

Tesla in July pushed back the launch of its much-anticipated Cybertruck from this year, without giving a timeframe for its arrival on the market.

On Thursday some questioned whether Musk, who has frequently touted technology advances at showpiece events only to scale plans down later on, would be able to come good on his aims for the robot.

“Is the ‘Tesla Bot’ the next dream shot to pump up the hype machine?” said Raj Rajkumar, professor of electrical and computer engineering at Carnegie Mellon University.

“I can safely say that it will be much longer than 10 years before a humanoid bot from any company on the planet can go to the store and get groceries for you.”

(Reporting by Hyunjoo Jin; Editing by Karishma Singh and Kenneth Maxwell)

Today’s Market Wrap Up and a Glimpse Into Tuesday

Stocks got off to a bumpy start but found their footing, sending the S&P 500 and Dow Jones Industrial Average to record highs. The Dow tacked on more than 100 points while the S&P 500 was up just modestly, though it was enough for an impressive turnaround. The Dow and the S&P 500 indexes are on winning streaks and have clinched five straight fresh all-time highs. The Nasdaq finished the day lower.

Despite Monday’s gains, investors still have a lot to be skittish about. The delta variant continues to spread, global uncertainty is on the rise and inflation data is hot, the latter of which could lead the Fed to taper its bond-buying program soon.

Stock index futures are pulling back from record levels, with all three of the major stock market indices trading in the red on Monday evening.

Stocks to Watch

  • Tesla shares fell 4% on Monday after a government division launched an investigation into the EV maker’s driver assistance Autopilot system. The National Highway Traffic Safety Administration is behind the probe, which is in response to nearly a dozen accidents in the past three years involving Tesla vehicles with Autopilot engaged.
  • Apple shares were heavily traded today, and the stock was up more than 1%. The iPhone maker is eyeing the return of its in-store classes in the U.S. and Europe by the end of this month, which would be a positive sign for the economy. Nonetheless, the delta variant could throw a wrench into Apple’s plans.
  • Shares of AMC Entertainment rallied 6% on the day after consumers returned to the movie theater. “Free Guy” starring Ryan Reynolds was the blockbuster hit of the weekend.

Look Ahead

On the earnings front, retailers are in focus. Big-box retailer Walmart is poised to release its quarterly results on Tuesday, as is Home Depot. Both stocks are Dow components and could influence the direction of trading in the index.

Retail sales for the month of July will be released on Tuesday. In June, retail sales climbed surprisingly higher. Wells Fargo economists are predicting a modest 0.1% increase for July while the delta variant continues to loom.

Industrial production for July also comes out on Tuesday. Wells Fargo economists are predicting a 0.4% increase as manufacturers continue to grapple with supply chain issues.

Musk Says Starship Orbital Stack to Be Ready for Flight in Few Weeks

SpaceX in May successfully landed its Starship prototype, SN15, a reusable heavy-lift launch vehicle that could eventually carry astronauts and large cargo payloads to the moon and Mars.

The touchdown came after four prototype landing attempts had ended in explosions.

“First orbital stack of Starship should be ready for flight in a few weeks, pending only regulatory approval,” Musk tweeted:

The complete Starship rocket, SpaceX’s next-generation launch vehicle, stands 394 feet (120 meters) tall when coupled with its super-heavy first-stage booster.

It is at the center of the Tesla Inc CEO’s ambitions to make human space travel more affordable and routine.

An orbital Starship flight is planned for year’s end, and Musk has said he intends to fly Japanese billionaire entrepreneur Yusaku Maezawa around the moon in the Starship in 2023.

(Reporting by Jahnavi Nidumolu and Kanishka Singh in Bengaluru; Editing by Daniel Wallis and William Mallard)

Indian Auto Part Makers Want Tesla’s Entry to Benefit Local Companies

By Aditi Shah

Tesla Inc Chief Executive Elon Musk said in July that the company was likely to set up a factory in India if successful with imported vehicles after it sought big cuts in import duties on electric cars.

The demand, reported by Reuters, has polarised the auto industry in the country and prompted a rare public debate among carmakers over whether easing import tax rates runs contrary to India’s push to promote domestic manufacturing.

“We will always promote localisation,” Deepak Jain, ACMA president told reporters on Tuesday, when asked about the industry body’s views on Tesla’s demand.

“We would welcome any foreign or domestic entry, capacity expansions on any vehicle segment as long as it promotes value addition and localisation, which gives the opportunity for the component sector to flourish,” he said.

Some industry executives argue that India does not have a robust supply chain or domestic production of electric vehicle (EV) components such as motors or lithium cells and would need to rely on imports, at least in the short-term.

Jain said ACMA is in talks with the government to identify which EV parts can be manufactured locally, but also warned that companies may struggle to make large investments at a time when sales have been slow for over two years.

ACMA’s comments supporting local production are similar to those made last week by companies like Tata Motors, the top-seller of electric cars in the country, and Softbank Group-backed Ola, which is making electric scooters in India.

Supporting import duty cuts, however, are South Korean automaker Hyundai Motor, which has an about 18% share of India’s car market, and German automaker Daimler’s Mercedes-Benz.

Santosh Iyer, vice president, sales and marketing at Mercedes in India told Reuters that luxury car customers are early adopters of new technology and once they start taking to EVs it trickles down.

“To give confidence to carmakers, if India is able to liberalise the import tax then companies like Mercedes can test the market and choose to manufacture EV models locally,” he said.

(Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)

Renewed Hope For The S&P500 as The Week Starts with an Upward Move

After a mid-July rally to a 6-month high, the household-name stock market index that tracks 500 large companies listed on stock exchanges in the United States tailed off, closing at 4,395.57 on Friday, creating an end-of-month damp squib within a market that investors had held a huge amount of confidence in for two weeks.

Today, however, a new lease of life has been breathed into the S&P 500, as it began the New York trading session this morning with a healthy upward direction to 4,415 by 9.30am Eastern Standard Time.

Looking at this today as the US market opened, analysts are keen to present their perspectives, one of which is that the current strength within the S&P 500 could be relatively short lived.

Credit Suisse, one of the world’s largest interbank dealers by market share, stated that its opinion is that investors may well continue to look for a “summer consolidation/correction” to emerge.

This contrasts considerably to analyses from early July, in which a degree of non-specific indications was made that it would go higher.

Interestingly, the big movers on the S&P range from top influential tech stocks such as Tesla and Microchip Technology to fashion brands including Ralph Lauren.

Tesla moved 3.75% this morning, whereas Ralph Lauren stock went up a sharp-suited 4.14%.

Whilst the analyses today differ from those two weeks ago, one thing is clear, and that is the presence of volatility, an aspect of the markets welcomed by traders which has been absent for some time.

Given the variation of sectors represented by the top movers on the S&P 500 today, it appears that volatility is across the board, not just driven by the ramblings of the usual social media-reliant big tech influencers.


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Battery Recycling Firm Redwood Raises $700 Million from Big Fund Managers

By Paul Lienert

The four-year-old Nevada firm aims to recover and refine critical materials such as nickel, cobalt and lithium to slash the cost and carbon footprint of battery production while reducing mining of those raw materials, Redwood Chief Executive J.B. Straubel said.

“An important part of our mission is to get these materials back as quickly and efficiently as possible into the battery supply chain — that’s easier said than done,” said Straubel, a co-founder of Tesla.

T. Rowe Price, Baillie Gifford and Fidelity all were investors in Tesla, according to investor website PitchBook.

Since 2017, Straubel and his team have raised nearly $800 million, giving the company a valuation of around $3.7 billion, according to a source familiar with Redwood.

The latest funding round included Goldman Sachs, Franklin Templeton, Emerson Collective and Valor Equity Partners, as well as prior investors Amazon, Capricorn and Breakthrough Energy Ventures, whose backers include Microsoft co-founder Bill Gates and Amazon founder Jeff Bezos.

Redwood has partnerships with battery makers Panasonic in Nevada and Envision AESC in Tennessee, as well as Amazon.

The new investment “lets us expand the business dramatically and step our way further up the value chain,” Straubel said.

The company is tripling the size of its Carson City, Nevada, facilities and hiring more than 500 people.

“I am very confident that recycling can be a huge lever to improve the emissions footprint of battery manufacturing,” Straubel said: “We’re hell-bent on making the recycling process absolutely sustainable.”

(Reporting by Paul Lienert in Detroit; Editing by Dan Grebler)

Analysis-Tesla Hikes Electric Car Prices in U.S.; Holds Line in China

By Eva Mathews, Nivedita Balu and Hyunjoo Jin

Tesla raised prices for the most affordable versions of Model 3 and Model Y about a dozen times this year in the United States, according data tracked by Reuters. At the same time, Tesla recently introduced an affordable Model Y version in China, where it refrained from price cuts.

Tesla posted record vehicle deliveries in the second quarter, and the price increases in North America boosted quarterly profits to a record.

But in China, the world’s biggest electric vehicle (EV) market, Tesla faces fierce competition from local rivals and problems that include product recalls, high-profile protests by consumers and pressure from regulators.

Bernstein analyst Toni Sacconaghi said introduction of the lower-priced Model Y in China “may make sustained margin improvement difficult” for Tesla and raises questions about “the health of Chinese demand.”

A study by Bernstein analysts found Tesla owners in China were less enthusiastic and had lower repurchase intentions than owners in the United States and Europe.

Tesla raised prices for Model Y Long Range at least six times in the United States this year, bumping by $5,500 to $53,990. In China, the world’s most valuable carmaker raised prices of the Model Y SUV and Model 3 sedan only once this year.

The Model Y version a price tag of 276,000 yuan ($42,393.71). The company also has launched promotional campaigns in China such as loan offers.

“I think Tesla is looking to be as competitive as it can be in China. Lower prices will be a part of that aggressive market positioning,” Roth Capital Partners analyst Craig Irwin said. “There is a very large difference in battery prices in the U.S. and China, as well as local vehicle manufacturing costs.”

Tesla started production at its Shanghai factory in late 2019. It has boosted sourcing of cheaper local components, including batteries from China’s CATL and LG’s Chinese factory.

“It wasn’t so long ago that the group was trimming prices in the U.S. to gain scale and maximize profitability, and it feels like we’re now seeing that in China too,” Hargreaves Lansdown analyst Nicholas Hyett said.

The low cost of producing local EVs in China would have a lasting effect for Tesla, said Gene Munster at Loup Ventures.

“Teslas are on average 3x the cost of a typical EV made in China. So they have to be priced less than the US to compete,” Munster said. “Prices of Teslas in China will be below rest of the world for the next decade.”

Tesla also cut costs and boosted margins in the U.S. market by getting rid of some parts like a radar sensor and lumbar support.

CHINA MARKET SHARE SLIPS

In China, Tesla’s share slipped to 11% in the battery electric vehicle market, which excludes plug-in hybrid cars, in the second quarter from 18% a year earlier, according to GLJ research. But data from Morgan Stanley showed Tesla still held a U.S. battery electric market share of nearly 70% as of February, although that was down from 81% a year earlier.

China accounts for 44% of the global EV market, a much bigger share than the 17% held by the United States.

In China, Tesla faces competition from electric vehicle makers like Nio Inc and Xpeng Inc. In the United States, Tesla’s brand is stronger and its main rivals are legacy automakers like Ford and General Motors, which generate only a fraction of their sales from EVs.

GLOBAL CHIP SHORTAGE

Tesla CEO Elon Musk has reiterated that the company’s mission is to make electric cars affordable, and has blamed vehicle price increases on a shortage of chips and raw materials.

Tesla is coping with the chip shortage by using alternative chips and rewriting software, Musk said.

He provided a cautious outlook for chip shortage. “It does seem like it’s getting better,” he said on the second-quarter earnings call, but added: “it’s hard to predict.”

($1 = 6.5104 Chinese yuan renminbi)

(Graphics: Prices of Tesla models in China: https://graphics.reuters.com/TESLA-PRICES/lgpdwmoaavo/chart.png)

(Graphics: Prices of Tesla models in the U.S.: https://graphics.reuters.com/TESLA-PRICES/xmvjognedpr/chart.png)

(Reporting by Eva Mathews, Subrat Patnaik and Nivedita Balu in Bengaluru and Hyunjoo Jin in Berkeley, California; Editing by Peter Henderson, David Gregorio and Gerry Doyle)

Why Tesla Stock Is Losing Ground After Strong Earnings Report

Tesla Stock Declines Amid Sell-Off In The Electric Vehicle Space

Shares of Tesla are moving lower after the company reported its second-quarter results.

The company reported revenue of $11.96 billion and GAAP earnings of $1.02 per share, beating analyst estimates on both earnings and revenue. Importantly for crypto market enthusiasts, Tesla did not sell any Bitcoin.

Tesla reported that its automotive gross margin was 28.4%, which was above analyst consensus. The company noted that it experienced some problems due to global shortages of certain components, but it maintained it multi-year target for 50% average annual growth of deliveries.

The report was strong, but Tesla stock found itself under pressure together with other electric vehicle stocks due to concerns about increased regulatory pressure in China.

China has recently showed that it was ready to implement draconian restrictions for successful companies in the education space if it believed that their business was not fully in line with the country’s goals, and investors fear that regulatory crackdown will continue in other industries.

What’s Next For Tesla Stock?

Tesla had some bad luck this time as its strong quarterly report was released at a time when the market was worried about regulatory crackdown in China. Tesla shares will remain sensitive to news from China as it is a very important market and the company has a factory in Shanghai.

Analyst estimates for Tesla’s earnings have pulled back a bit in recent weeks. Currently, analysts expect that Tesla will report a profit of $4.48 per share in 2021 and $6.18 per share in 2022, so the stock is trading at roughly 104 forward P/E. Analyst estimates will likely move higher after the strong report, but Tesla will remain a very expensive company on a P/E basis.

Back in June, Tesla stock made an attempt to gain upside momentum but faced resistance near the $700 level and pulled back. Tesla is richly valued by the market, and it looks that it will need strong catalysts to move above the resistance near $700.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Rejected at $40,000 Amid a Dwindling Bull Run

  • Bitcoin has seen meteoric growth in the past 24 hours as fueled by news from Amazon.
  • Despite the uptrend which stirred a growth of up to 15% in the latest run, the market bears rejected a push-up beyond the $40,000 resistance point.
  • Ethereum is also seeing a rejuvenation as it looks to breach the $2,500 price level.

Unique fundamentals unraveled in the past days have stirred a rejuvenation in the cryptocurrency industry. For a market that has been begging for a bullish awakening in months, the 8.65% in the global crypto market cap to $1.53 Trillion is perhaps enough to suggest a major rally may be brewing. This, however, is dependent on how Bitcoin and Ethereum can sustain their current growth trends.

Bitcoin Sees Impressive Price Growth and a Simultaneous Rejection

The premier cryptocurrency is currently changing hands at $38,282.8, up 9.84% according to data from CEX.IO the price feed. The news that Amazon is looking to hire a crypto expert to help chart its pursuit of accepting Bitcoin payments can be tipped as a major cause for this recent growth.

With the institutional backing which has seen the likes of Tesla, MicroStrategy, and recently SpaceX places a Bitcoin holding on their balance sheets set to be complemented with the Amazon push, market bulls went on an unbridled accumulation, pushing the price to a weekly and monthly high of $39,280.42.

The uptrend as seen on the BTC/USD 4h chart is attaining the peak at the current price level, suggesting a bear action that is repressing the price growth from crossing the $40,000. The RSI and MACD indicators are still showing positive signs of growth, and while we may see a little retracement, crossing the $40,000 resistance point remains the short-term target for investors.

Ethereum Maintaining a Steady Growth

At a current price of $2352.31 and a growth rate of 8.01% in the past 24 hours, Ethereum’s uptrend correlation with BTC was reiterated. However, unlike Bitcoin which has started seeing a gradual bear action, Ethereum bulls are pushing the coin to a new price point, such as has never be seen in the past month.

With prices trading above the short-term Moving Average, a sustained buyup can push Ethereum to the $2,500 to $3,000 price level in the coming weeks.

Today’s Market Wrap Up and a Glimpse Into Tuesday

Stocks started off the week strong, with all three of the major indices finishing at all-time highs. The gains are an extension of last week’s rally and demonstrate a vote of confidence among investors in corporate America’s earnings results. While the Dow Jones Industrial Average, S&P 500 and Nasdaq were up just fractionally, it was enough to send them all into record territory.

In the cryptocurrency markets, the bitcoin price crossed the USD 40,000 level for the first time in over a month, but the gains slowly faded away. Reports previously suggested that Amazon.com was on the brink of accepting bitcoin payments this year. The e-commerce giant, however, reportedly quashed those rumors despite maintaining that it is looking into crypto.

Stocks to Watch

Tesla’s highly anticipated Q2 earnings are out, and Elon Musk didn’t disappoint. The EV maker surpassed Wall Street estimates on earnings and revenue as Tesla continues to hit on all cylinders. Net income crossed over into the billion-dollar territory, which was a first for the company, while revenue came in at USD 11.9 billion vs. estimates of USD 11.3 billion.

Tesla, which delivered more than 200K vehicles in Q2, said it’s on track to produce its Model Y vehicles in Berlin and Austin, Texas this year. The Cybertruck will also be produced in Austin, Texas “subsequent to Model Y.”

Tesla’s stock is inching higher in extended-hours trading after gaining 2% in the regular session. Tesla also noted it “recorded a bitcoin-related impairment of USD 23 million.” The bitcoin price nosedived 40% in the second quarter of 2021.

F5 Networks is rallying in after-hours trading, with shares up more than 5%. Investors rewarded the technology company for its fiscal Q3 results, which came in better than Wall Street expected.

Cryptocurrency exchange Coinbase saw shares fall close to 2% in extended hours, perhaps in sympathy with bitcoin after the air was let out of the Amazon-fueled rally.

Look Ahead

Major technology companies are queued to report earnings on Tuesday, including Apple, Google parent Alphabet and Microsoft. Snap and Twitter’s quarterly results last week revealed a strong online advertising market that is likely to have benefited Alphabet as well.

On the economic front, Durable Good Orders for the month of June come out at 10 a.m. ET on Tuesday. Wells Fargo economists predict that this indicator increased 2.3% last month fueled in part by orders for Boeing aircraft.

Stock Index Futures Show Poise Ahead of Monday’s Open

The Dow Jones Industrial Average reached a milestone last week that will be tough to top this week. The index added more than 230 points on Friday to finish above 35K for its first time in history. Friday’s performance brings the Dow’s year-to-date gains to 14% and clinches four consecutive days of finishing in the green. It has been a little over three months since the Dow crossed the 34K threshold for the first time as the bulls continue to flex their muscles.

The S&P 500 and tech-heavy Nasdaq were both up more than 1% on Friday.

Stock index futures are basically flat with a slight leaning to the downside on Sunday evening as investors brace for Monday’s trading. Tech earnings are the name of the game this week. The oil price continues to rebound and is moving fractionally higher to above USD 72 per barrel on expectations that supply constraints will persist for the rest of 2021.

Stocks to Watch

Earnings season is in full swing. All eyes will be on Tesla on Monday when it reports its Q2 results after the closing bell. The company already revealed that it had more than 200K deliveries in the quarter, its best ever for a single quarter. Wall Street is largely expecting the EV maker to top analyst estimates with its earnings, which could fuel the stock higher. Tesla chief Elon Musk hinted at Tesla resuming bitcoin payments soon.

Separately, Snap Inc’s value ballooned by more than 23% on Friday on the heels of better-than-expected results on the top and bottom lines. The social media company’s results were fueled by a robust online ads market in addition to more daily active users.

If Snap’s earnings are any indication, good things could be ahead for tech giants Facebook, Google’s Alphabet and Amazon.com, which are on tap to report quarterly results this week.

Look Ahead

An FOMC meeting will unfold on Tuesday and Wednesday. Policymakers are not expected to roil the markets by shaking up monetary policy despite rising inflation, according to Wells Fargo economists. Meanwhile, investors will get the first glimpse into Q2 GDP on Thursday.

Lockheed Martin reports its quarterly results before the opening bell on Monday. Also this week, more earnings are in the pipeline, including the likes of Dow component Boeing.

Bears In Control Ahead of Tesla Report

Tesla Inc. (TSLA) reports Q2 2021 earnings after Monday’s closing bell, with analysts looking for a profit of $0.98 per-share on $11.4 billion in revenue. If met, earnings-per-share (EPS) will mark a 55% profit decline compared to the same quarter last year. The stock fell more than 4% despite beating Q1 top and bottom line estimates in April and shed another 24% into mid-May.  It’s recovered just half of that loss into July, stuck like glue to the 50-day moving average.

Bearish Long-Term Price Pattern

The stock is taking a multi-month breather after posting an historic 839% return in 2021, closing out last Friday’s session with an 8% year-to-date loss. More importantly, price action has been carving the outline of a bearish descending triangle since November, with the pattern’s characteristic horizontal floor near 540 and lower highs at 781 and 698. Support has now aligned with the 200-day moving average, raising the stakes heading into this week’s confessional.

Fortunately for shareholders, there are good reasons to believe that Tesla will post another strong quarter. An industry publication just reported that “some U.S. deliveries of Model 3 cars were pushed back amid high demand”. Those vehicles are now manufactured at the Freemont facility but the Austin facility is scheduled to come online in coming months, supporting much higher production. Reuters also chimed in with a bullish piece, noting Q2 registrations in California increased 85% in the second quarter.

Wall Street and Technical Outlook

Wall Street consensus has grown cautious after historic share gains, with a ‘Hold’ rating based upon 15 ‘Buy’, 1 ‘Overweight’, 15 ‘Hold’, and 2 ‘Underweight’ recommendations. More importantly, six analysts are recommending that shareholders close positions and move to the sidelines. Price targets currently range from a low of $67 to a Street-high $1,471 while the stock closed Friday’s session about $75 below the median $718 target.

Tesla broke out above 2017 resistance in the 70s in January 2020 and bounced at new support in March. It completed another breakout in June, entering a powerful trend advance that posted an all-time high at 900.40 on Jan. 25. The bearish pattern since that time has dropped accumulation to late 2020 levels while monthly and weekly Stochastics are grinding through sell cycles. This action warns investors to reduce risk if the stock drops to support near 540 after earnings.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Monstrous Earnings Week Ahead: Tesla, Google, Microsoft, Apple, Facebook and Amazon in Focus

Earnings Calendar For The Week Of July 26

Monday (July 26)

IN THE SPOTLIGHT: TESLA, LOCKHEED MARTIN

TESLA: The California-based electric vehicle and clean energy company is expected to report its second-quarter earnings of $0.94 per share, which represents year-over-year growth of over 113% from $0.44 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer would post revenue growth of about 90% to around $11.4 billion. The electric vehicle producer has beaten earnings three times in the last four quarters.

“A double-fly-wheel. We believe Tesla can leverage its cost leadership in EVs to aggressively expand its user base, over time generating a higher % of revenue from recurring/high-margin services revenue. Services drives the upside. We forecast Tesla’s network services EBITDA as a % of total TSLA EBITDA to reach 11% by 2025, ~18% by 2030 and ~35% by 2040. Tesla Service revenue includes automated driving, infotainment, upgrades, supercharging, maintenance, telematics, etc,” noted Adam Jonas, equity analyst at Morgan Stanley.

“Valuation supportive vs. tech. Including Network Services, Energy & Insurance to our core auto fcst, at $900 Tesla trades at ~29x EV/EBITDA in 2025 and ~6x 2025 sales. Expensive vs. auto but not vs. software/tech comps.”

LOCKHEED MARTIN: The Bethesda, Maryland-based global security and aerospace company is expected to report its second-quarter earnings of $6.53 per share, which represents year-over-year growth of about 13% from $5.79 per share seen in the same quarter a year ago.

The world’s largest defense contractor would post revenue growth of over 4% to around $16.9 billion. It is worth noting that the aerospace company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 26

Ticker Company EPS Forecast
PSON Pearson £8.40
LMT Lockheed Martin $6.53
PHG Koninklijke Philips $0.47
CHKP Check Point Software Technologies $1.56
LII Lennox International $4.39
RPM RPM International $1.26
BOH Bank of Hawaii $1.31
DORM Dorman Products $1.04
TSLA Tesla $0.94
KOF Coca Cola Femsa Sab De Cv $14.53
ARE Alexandria Real Estate Equities $0.62
AMP Ameriprise Financial $5.20
SUI Sun Communities $0.57
BRO Brown & Brown $0.40
UHS Universal Health Services $2.69
PKG Packaging Of America $1.77
FFIV F5 Networks $2.46
AGNC American Capital Agency $0.65
ACC American Campus Communities -$0.07
AMKR Amkor Technology $0.45
CR Crane $1.39
ADC Agree Realty $0.47
SSD Simpson Manufacturing $1.61
AXTA Axalta Coating Systems $0.46
TNET TriNet $0.81
HXL Hexcel $0.01
RRC Range Resources $0.25
PCH Potlatch $2.55
JJSF J&J Snack Foods $0.76
IBTX Independent Bank $1.31
CATY Cathay General Bancorp $0.83
AIN Albany International $0.73
CALX Calix $0.27
IBA Industrias Bachoco Sab De Cv $1.22
ARI Apollo Commercial Real Est Finance $0.36
PPERY PT Bank Mandiri Persero TBK $0.18
CDNS Cadence Design Systems $0.76
OTIS Otis Worldwide Corp $0.72
RYAAY Ryanair -$1.46
HAS Hasbro $0.48
WWD Woodward $0.98
ACKAY Arcelik ADR $0.46
GT Goodyear Tire & Rubber $0.16
TTM Tata Motors -$0.31
CBU Community Bank System $0.80
SANM Sanmina $0.91
BDN Brandywine Realty $0.01
FRME First Merchants $0.91

Tuesday (July 27)

IN THE SPOTLIGHT: GOOGLE (ALPHABET), MICROSOFT, APPLE

GOOGLE (ALPHABET): The parent of Google and the world’s largest search engine that dominates internet search activity globally is expected to report its second-quarter earnings of $19.33 per share, which represents year-over-year growth of about 90% from $10.13 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 45% to around $56.16 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 43% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Alphabet shares surged more than 50% so far this year. On Friday, the stock closed at a fresh record high at $2,660.30, up 3.57%.

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal fourth-quarter earnings of $1.91 per share, which represents year-over-year growth of over 30% from $1.46 per share seen in the same quarter a year ago. The world’s largest software maker would post revenue growth of over 15% to around $44.1 billion, up from the $38.03 billion a year earlier.

“Channel work and our CIO survey point to building momentum across the Cloud, Hybrid and On-premise portfolio, which should power a solid Q4. While investors seek reassurances margin expansion continues into FY22, our model suggests durable high-teens EPS growth and upside in the shares,” noted Keith Weiss, equity analyst at Morgan Stanley.

Microsoft’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Microsoft shares have surged more than 30% so far this year.

APPLE: The consumer electronics giant would post its fiscal third-quarter earnings of $1.01 per share, which represents year-over-year growth of over 55% from $0.65 per share seen in the same quarter a year ago.

The iPhone manufacturer would post revenue growth of over 20% to around $73.3 billion up from $59.69 billion a year earlier. It is worth noting that the company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 27

Ticker Company EPS Forecast
SIRI Sirius XM $0.07
IEX IDEX $1.62
PCAR PACCAR $1.40
MMM 3M $2.29
MSCI Msci $2.31
ENPH Enphase Energy $0.42
LSXMK Liberty Media SiriusXM C $0.36
LSXMA Liberty Media SiriusXM A $0.48
CVLT Commvault Systems $0.52
LOGI Logitech Internationalusa $0.90
MXIM Maxim Integrated Products $0.85
ST Sensata Technologies $0.88
CNC Centene $1.22
UPS United Parcel Service $2.79
TRU TransUnion $0.91
SHW Sherwin-Williams $2.67
IVZ Invesco $0.70
FELE Franklin Electric $0.80
LW Lamb Weston Holdings Inc $0.42
IQV IQVIA Holdings Inc $2.07
RTX Raytheon Technologies Corp $0.93
ENTG Entegris $0.79
LECO Lincoln Electric $1.48
FISV Fiserv $1.28
DTE DTE Energy $1.36
GE General Electric $0.03
ROK Rockwell Automation $2.09
WM Waste Management $1.19
SWK Stanley Black & Decker $2.88
ADM Archer-Daniels Midland $1.02
HUBB Hubbell $2.16
PNR Pentair Ordinary Share $0.79
BSX Boston Scientific $0.37
ECL Ecolab $1.21
PPBI Pacific Premier Bancorp $0.71
GPK Graphic Packaging $0.28
PHM PulteGroup $1.73
AWI Armstrong World Industries $1.05
RGEN Repligen $0.52
SFNC Simmons First National $0.52
SSTK Shutterstock $0.68
ABG Asbury Automotive $4.60
MPWR Monolithic Power Systems $1.69
CHRW C.H. Robinson Worldwide $1.33
MANH Manhattan Associates $0.43
GOOG Alphabet $19.33
CB Chubb $3.00
AMD Advanced Micro Devices $0.54
PGRE Paramount Group -$0.05
SBUX Starbucks $0.77
CAKE Cheesecake Factory $0.72
EGP EastGroup Properties $0.67
AXS Axis Capital $1.42
WSBC WesBanco $0.75
HIW Highwoods Properties $0.33
STAG STAG Industrial $0.12
VIST Vista Oil Gas $0.15
NAVI Navient $0.85
EHC Encompass Health Corp $0.98
OMAB Grupo Aeroportuario Del Centro Nort $11.31
NOV National Oilwell Varco -$0.13
V Visa $1.34
GOOGL Alphabet $19.24
BXP Boston Properties $0.57
AAT American Assets $0.11
MSFT Microsoft $1.91
JNPR Juniper Networks $0.39
BYD Boyd Gaming $0.90
MASI Masimo $0.90
MTDR Matador Resources $0.75
CSGP CoStar $0.23
FIBK First Interstate BancSystem $0.72
OLN Olin $1.44
EQR Equity Residential $0.19
EXR Extra Space Storage $1.06
EPR EPR Properties $0.06
USNA USANA Health Sciences $1.72
THG Hanover $2.38
UMBF UMB Financial $1.75
CHE Chemed $4.29
SYK Stryker $2.13
MDLZ Mondelez International $0.65
MAT Mattel -$0.06
PFG Principal Financial $1.52
AAPL Apple $1.01
TER Teradyne $1.75
VIV Telefonica Brasil $0.13
ASH Ashland $1.31
GLW Corning $0.51
PII Polaris Industries $2.15
JBLU JetBlue Airways -$0.74
RDY Drreddys Laboratories $0.55
XRX Xerox $0.40
CIT CIT $0.86
SID Companhia Siderurgica Nacional $0.86
RNST Renasant $0.77

Wednesday (July 28)

IN THE SPOTLIGHT: FACEBOOK

The world’s largest online social network is expected to report its second-quarter earnings of $3.04 per share, which represents year-over-year growth of about 70% from $1.80 per share seen in the same quarter a year ago. The Menlo Park, California-based social media conglomerate would post revenue growth of over 49% to around $28.0 billion.

“Monetization Potential: We are positive on FB’s monetization roll-out of Instagram as well as FB’s ability to continue to innovate and improve its monetization (Canvas Ads, Dynamic Ads, video). Combined with the high and growing engagement we see monetization upside going forward,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Investing from Position of Strength to Drive Faster Long-Term Growth: We are modeling ~33% GAAP opex (excl. one-time items) growth in 2021, implying an incremental ~$18bn in opex. Our base case model implies opex per employee moderates in ’21 while FB hiring remains roughly flat on an absolute basis. We believe FB will grow EPS at a ~39% CAGR (2019-2022).”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 28

Ticker Company EPS Forecast
PTC PTC $0.63
URI United Rentals $4.90
ENSG Ensign $0.88
ALKS ALKERMES $0.12
TYL Tyler Technologies $1.63
AMG Affiliated Managers $3.85
SF Stifel Financial $1.38
FIX Comfort Systems USA $0.91
MSA MSA Safety $1.04
CBD Companhia Brasileira De Distrib $0.04
ALGT Allegiant Travel $2.55
GD General Dynamics $2.55
HES Hess $0.11
PFE Pfizer $0.97
QCOM Qualcomm $1.68
HP Helmerich & Payne -$0.56
UMC United Microelectronics $0.14
BA Boeing -$0.81
EQIX Equinix $1.87
DB Deutsche Bank $0.33
RJF Raymond James Financial $2.27
SAN Banco Santander $0.13
HNP Huaneng Power International $0.86
LRCX Lam Research $7.59
APH Amphenol $0.55
EVR Evercore Partners $2.71
PPC Pilgrim’s Pride $0.52
R Ryder System $1.38
NSC Norfolk Southern $2.97
FORM FormFactor $0.33
SHOO Steven Madden $0.31
SCI Service International $0.67
ADP ADP $1.14
MNRO Monro Muffler Brake $0.52
SLAB Silicon Laboratories $0.93
BXMT Blackstone Mortgage $0.60
PAG Penske Automotive $2.76
ROL Rollins $0.18
BCS Barclays $0.54
CAJ Canon $0.33
XLNX Xilinx $0.78
HUM Humana $6.82
AVY Avery Dennison $2.05
NYCB New York Community Bancorp $0.30
SCL Stepan $1.84
GSK Glaxosmithkline $0.55
CME CME $1.61
TEVA Teva Pharmaceutical Industries $0.59
MCD McDonalds $2.11
BSBR Banco Santander Brasil $0.20
EXP Eagle Materials $2.07
DT Dynatrace Holdings $0.15
EEFT Euronet Worldwide $0.65
SPOT Spotify -$0.38
OC Owens Corning $2.14
FMX Fomento Economico Mexicano Sab $14.29
BMY Bristol-Myers Squibb $1.89
VRTS Virtus Investment Partners $8.11
GRMN Garmin $1.26
SIX Swiss Exchange -$0.22
CCJ Cameco USA -$0.05
TDY Teledyne Technologies $2.70
IART Integra LifeSciences $0.66
GNRC Generac $2.30
MCO Moody’s $2.77
VRT Veritas Pharma $0.24
EPD Enterprise Products Partners $0.50
GIB CGI Group USA $1.08
TMO Thermo Fisher Scientific $5.47
TEL TE Connectivity $1.58
SLGN Silgan $0.83
PB Prosperity Bancshares $1.39
ODFL Old Dominion Freight Line $2.17
BG Bunge $1.62
LFUS Littelfuse $2.24
CNMD CONMED $0.62
CP Canadian Pacific Railway USA $1.00
AVB AvalonBay Communities $0.74
ALGN Align Technology $2.52
AM Antero Midstream Partners $0.19
CNO CNO Financial Group $0.54
CINF Cincinnati Financial $0.99
SSNC SS&C Technologies $1.14
MTH Meritage Homes $3.28
TTEK Tetra Tech $0.88
MKSI MKS Instruments $2.95
ROIC Retail Opportunity Investments $0.06
SIGI Selective $1.23
VAC Marriottacations Worldwide $0.89
PDM Piedmont Office Realty $0.05
IRBT Irobot $0.32
UDR UDR $0.01
EXAS Exact Sciences -$0.75
MOH Molina Healthcare $3.39
EQT EQT $0.04
MXL MaxLinear $0.50
IR Ingersoll Rand $0.42
AGI Alamos Gold $0.11
MAA Mid-America Apartment Communities $0.55
KGC Kinross Gold USA $0.13
ESRT Empire State Realty -$0.01
BSMX Santander Mexico Fincl Gp Sab Decv $0.17
CRUS Cirrus Logic $0.39
MUSA Murphy USA $3.21
RE Everest Re $8.58
VALE Vale $1.47
DRE Duke Realty $0.19
PYPL PayPal $1.12
NOW ServiceNow $1.21
CCS Century Communities $2.84
NLY Annaly Capital Management $0.27
TROX Tronox $0.52
XPO XPO Logistics $1.66
SAVE Spirit Airlines -$0.86
PAC Grupo Aeroportuario Del Pacifico $1.14
CHX ChampionX Corp $0.10
NUVA NuVasive $0.44
FBHS Fortune Brands Home Security $1.39
NOVA Nova Mentis Life Science Corp -$0.24
FB Facebook $3.04
ACGL Arch Capital $0.84
CONE CyrusOne $0.04
AR Antero Resources $0.20
AEM Agnico Eagle Mines USA $0.59
RBC Regal Beloit Corporation $2.07
PEGA Pegasystems -$0.18
AFL Aflac $1.28
PKI PerkinElmer $2.44
CHDN Churchill Downs $2.51
PEB Pebblebrook Hotel -$0.65
CTSH Cognizant Technology Solutions $0.96
HOLX Hologic $1.12
KRC Kilroy Realty $0.29
ALSN Allison Transmission $0.93
F Ford Motor -$0.04
ASGN On Assignment $1.29
HIG Hartford Financial Services $1.34
ORLY O’Reilly Automotive $7.51
ISBC Investors Bancorp $0.31

Thursday (July 29)

IN THE SPOTLIGHT: AMAZON.COM

The eCommerce leader for physical and digital merchandise is expected to report its second-quarter earnings of $12.24 per share, which represents year-over-year growth of about 19% from $10.3 per share seen in the same quarter a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of about 29% to around $115 billion. The company has beaten earnings per share (EPS) estimates at all times in the last four quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 29

Ticker Company EPS Forecast
RLGY Realogy $1.08
VSTO Vista Outdoor $0.90
AGCO AGCO $2.20
PCG PG&E $0.28
MATX Matson $2.96
PRFT Perficient $0.79
NATI National Instruments $0.05
GPI Group 1 Automotive $7.59
CFX Colfax $0.53
CMS CMS Energy Corporation $0.46
LYG Lloyds Banking $0.14
MHK Mohawk Industries $3.59
EBS Emergent BioSolutions $1.41
TXT Textron $0.65
AUOTY AU Optronics $0.56
CMCSA Comcast $0.66
VLO Valero Energy $0.17
CG Carlyle $0.60
ABEV Ambev $0.02
NLSN Nielsen $0.36
MTD Mettler Toledo International $7.62
ADS Alliance Data Systems $3.68
FTNT Fortinet $0.88
FTV Fortive Corp $0.60
ASX Advanced Semiconductor Engineering $0.16
LKQ LKQ $0.75
ERJ Embraer -$0.26
TFX Teleflex $2.87
CARR Carrier Global Corp $0.55
CX Cemex Sab De Cv $0.16
ORAN Orange $0.18
CVE Cenovus Energy USA $0.26
MT Arcelormittal $2.52
MA Mastercard $1.74
KBR KBR $0.50
HOCPY Hoya Corp $0.85
YUM Yum Brands $0.96
EIX Edison International $1.02
EME EMCOR $1.58
AGIO Agios Pharmaceuticals -$1.35
KPELY Keppel Corporation $0.18
BUD Anheuser-Busch $0.87
CS Credit Suisse $0.22
DANOY Danone PK $0.45
SNY Sanofi $0.77
AZN Astrazeneca $0.45
TEF Telefonica $0.14
STM Stmicroelectronics $0.37
GRFS Grifolsbarcelona $0.26
THRM Gentherm $0.65
WWW Wolverine World Wide $0.49
CNX Consol Energy $0.24
CBRE CBRE Group Inc $0.77
TAP Molson Coors Brewing $1.35
VC Visteon $0.05
KEX Kirby $0.14
TREE LendingTree -$0.63
SAH Sonic Automotive $1.38
HSY Hershey $1.42
AMT American Tower $1.27
TW Towers Watson $0.39
OSK Oshkosh $2.25
MAS Masco $1.04
MO Altria $1.18
TROW T. Rowe Price $3.19
CTXS Citrix Systems $1.22
SPGI S&P Global Inc $3.26
BAX Baxter International $0.75
ICE Intercontinental Exchange $1.16
SO Southern Co. $0.79
NTCT Netscout Systems $0.18
GOL Gol Linhas Aereas Inteligentes -$0.91
CFR Cullen/Frost Bankers $1.56
CWT California Water Service $0.41
FSS Federal Signal $0.45
AER AerCap $1.37
COLB Columbia Banking System $0.66
COR CoreSite Realty $0.45
WEX WEX $1.95
TMHC Taylor Morrison Home $0.96
XEL Xcel Energy $0.56
FLEX Flextronics International $0.38
SAIA Saia $2.05
OSTK Overstock $0.67
IDA IdaCorp $1.21
FCN FTI Consulting $1.52
LAWS Lawson Products $0.60
WST West Pharmaceutical Services $1.74
MLM Martin Marietta Materials $3.85
MTSI MACOM Technology Solutions $0.53
LH Laboratory Of America $5.62
EXLS ExlService $1.01
BSAC Banco Santander Chile $0.50
AOS A.O. Smith $0.65
TPX Tempur Sealy International $0.56
HBAN Huntington Bancshares $0.32
WAB Westinghouse Air Brake Technologies $0.96
NOC Northrop Grumman $5.83
MMP Magellan Midstream Partners $1.02
HLT Hilton Worldwide $0.39
KDP Keurig Dr Pepper $0.37
OMCL Omnicell $0.82
BC Brunswick $2.14
MRK Merck & Co $1.40
TRP Transcanada USA $0.77
KIM Kimco Realty $0.12
IP International Paper $1.06
MDC MDC $1.99
PRLB Proto Labs $0.44
SGEN Seattle Genetics -$0.61
CPT Camden Property $0.34
SIMO Silicon Motion Technology $1.25
CUBE CubeSmart $0.21
DLB Dolby Laboratories $0.28
BIO Bio-Rad Laboratories $2.66
CC Chemours Co $0.94
ZEN Zendesk $0.16
FWRD Forward Air $0.97
AJG Arthur J. Gallagher $1.08
SPSC SPS Commerce $0.40
ROG Rogers $1.89
ERIE Erie Indemnity $1.51
CUZ Cousins Properties $0.20
WELL Welltower Inc $0.15
PTCT PTC Therapeutics -$1.81
AUY Yamana Gold USA $0.06
LPLA LPL Financial $1.67
WWE World Wrestling Entertainment $0.25
WRE Washington Real Estate Investment -$0.04
TXRH Texas Roadhouse $0.98
ATR AptarGroup $0.97
GLPI Gaming And Leisure Properties $0.57
OFC Orate Office Properties $0.14
RSG Republic Services $0.95
TEX Terex $0.60
X United States Steel $3.08
LBTYA Liberty Global Class A Ordinary Shares $0.46
KLAC KLA-Tencor $3.99
SWKS Skyworks Solutions $2.14
DXCM Dexcom $0.44
HUBG HUB $0.70
VCYT Veracyte -$0.25
POWI Power Integrations $0.75
LGND Ligand Pharmaceuticals $1.38
FHI Federated Hermes Inc $0.66
FSLR First Solar $0.55
CWST Casella Waste Systems $0.24
DLR Digital Realty $0.24
MTX Minerals Technologies $1.25
VRTX Vertex Pharmaceuticals $2.37
PFPT Proofpoint $0.49
ESS Essex Property $0.88
GILD Gilead Sciences $1.73
WERN Werner $0.87
MMSI Merit Medical Systems $0.45
LBTYK LIBERTY GLOBAL $0.46
AMZN Amazon $12.24
QGEN Qiagen $0.65
EW Edwards Lifesciences $0.55
NRZ New Residential Investment $0.31
MSTR Microstrategy $0.81
SM SM Energy -$0.26
SWN Southwestern Energy $0.21
TMUS T-Mobile Us $0.51
DECK Deckers Outdoor -$0.15
CORT Corcept Therapeutics $0.17
TWOU 2U -$0.16
SBH Sally Beauty $0.62
MPW Medical Properties $0.29
CACC Credit Acceptance $10.36
SJW SJW $0.64
SHEN Shenandoah Telecommunications $0.86
ES Eversource Energy $0.80
KMPR Kemper $1.33
WRI Weingarten Realty Investors $0.10
OPK Opko Health $0.02
SU Suncor Energy USA $0.39
APELY Alps Electric $0.11
ACI AltaGas Canada $0.69
EXPO Exponent $0.42

Friday (July 30)

Ticker Company EPS Forecast
KMTUY Komatsu $0.40
VFC VF $0.11
ABR Arbor Realty $0.42
PEXNY PTT Exploration & Production $0.16
LAZ Lazard $0.89
HRC Hill-Rom $1.35
XOM Exxon Mobil $1.00
COG Cabot Oil Gas $0.29
MFG Mizuho Financial $0.08
GCTAY Siemens Gamesa ADR $0.02
TU Telus USA $0.21
JCI Johnson Controls $0.83
CL Colgate-Palmolive $0.80
BAH Booz Allen Hamilton $0.97
TOTDY Toto $0.25
ASEKY Aisin Seiki Co $1.13
BBVA Banco Bilbaoizcaya Argentaria $0.06
E ENI $0.33
FMS Fresenius Medical Care $0.48
SMFG Sumitomo Mitsui Financial $0.21
SBGSY Schneider Electric SA $0.63
PG Procter & Gamble $1.09
CHD Church Dwight $0.70
ALNPY ANA Holdings ADR -$0.20
CVX Chevron $1.58
BNPQY BNP Paribas ADR $1.07
NMR Nomura $0.17
CHT Chunghwa Telecom $0.34
HUN Huntsman $0.81
LIN Linde PLC $2.55
AON AON $1.85
PNM PNM Resources $0.46
CAT Caterpillar $2.41
CPRI Capri Holdings Ltd $0.79
BLMN Bloomin’ Brands $0.66
CHTR Charter Communications $4.79
DAN Dana $0.50
ITW Illinois Tool Works $2.09
GWW Grainger $4.59
CERN Cerner $0.76
NWL Newell Brands Inc $0.45
POR Portland General Electric $0.37
ENB Enbridge USA $0.45
LYB LyondellBasell Industries $5.30
ABBV AbbVie $3.08
SHLX Shell Midstream Partners $0.35
WPC W. P. Carey $0.56
AVNT Avient Corp $0.81
WY Weyerhaeuser $1.37
IDXX Idexx Laboratories $2.02
BCPC Balchem $0.82
For a look at all of today’s economic events, check out our economic calendar.

Tesla Stock Keeps Its Cool Ahead of Upcoming Earnings

Elon Musk drums up so much attention for his cryptocurrency portfolio that Tesla seems to take a backseat. In less than a week, however, Tesla will be thrust back into the spotlight when the electric vehicle maker reports its Q2 earnings on July 26. The stock is up by more than 1% today. After a white-hot stretch that started last year, TSLA shares are off their best levels of 2021.

More often than not, investors tend to be bullish on Tesla’s stock in the days before its quarterly earnings release. Barron’s pointed out that the average increase in the trading sessions leading up to earnings is 1.6%.

Software vs. Hardware

Morgan Stanley analysts reportedly suggest that Tesla’s revenue model could shift to where the company generates more sales from software vs. hardware, such as its Model 3s, for instance. The analysts address a shift in Wall Street coverage away from the traditional auto sector to more of a tech stock, which could warrant a rerating of the stock.

Tesla sells various software packages including a recently introduced Full Self Driving monthly subscription for USD 199 rather than a USD 10K lump sum. In turn, Tesla collects ongoing revenue and could attract more drivers with the added payment options. Tesla reminded drivers that the software won’t make the vehicle drive itself and they still must stay “fully attentive” and keep their “hands on the wheel.”

Performance Snapshot

Tesla already provided a snapshot into its Q2 performance with some stats, including the delivery of more than 200K vehicles across Model S/X and Model 3/Y despite supply chain constraints. The more vehicles that Tesla delivers, the more bullish the outlook for the stock as this means fewer cars sitting in inventory and more of them on the open road.

In addition, some performance results out of China are available thanks to China Automotive Information Net data cited by Bloomberg. Tesla saw close to a 30% spike in the number of registrations last month to more than 28,500 for the following vehicles that were built at its Shanghai site:

  • Model 3 sedans
  • Model Y SUVs

Meanwhile, Model 3 registrations came close to 17K and registrations for Model Y vehicles dipped vs. May levels. Last year, Tesla generated USD 6.6 billion in sales from China, representing about 20% of its overall revenue.

Tesla Launches Subscription Service for Advanced Driver Assistance Software

Tesla has previously said its subscription service would generate recurring revenue and expand the customer base for pricy features including lane changing on highways and parking assistance.

But the U.S. electric carmaker reiterated on Saturday that the current features “do not make the vehicle autonomous,” adding they “require a fully attentive driver, who has their hands on the wheel.””FSD capability subscriptions are currently available to eligible vehicles in the United States. Check your Tesla app for updates on availability in other regions,” Tesla said on its website.

Tesla’s CFO Zachary Kirkhorn said in April that its planned subscription service would generate recurring revenue for the company, although “there could be a period of time in which cash reduces in the near term.”

“If … you look at the number of customers who did not purchase FSD upfront or on a lease and maybe want to experiment with FSD, this is a great option for them,” he said during an earnings call in April.

Tesla said the subscription service is available in vehicles equipped with Full Self-Driving computer 3.0 or above. It told customers that upgrading to the new hardware will cost $1,500.

Tesla Chief Executive Elon Musk forecast in 2019 that robotaxis with no human drivers would be available in some U.S. markets in 2020. In March, Tesla told a California regulator that it may not achieve full self-driving technology by the end of this year.

Tesla has been testing its new semi-autonomous driving software for city streets and last week released “FSD Beta v9” to a limited number of customers.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Hyunjoo Jin; Editing by Kirsten Donovan and Daniel Wallis)