Best Growth Stocks to Buy Now for June 2022

Markets overall continued to trend downward recently on heavy selling action. Geopolitical tensions and uncertainty due to a host of factors, inflation being a big one, caused investors to flee.

However, we’re now seeing an uptick. Markets may have turned a corner. In fact, we recently hit an incredibly bullish indicator that historically has preceded big future returns.

Markets and Big Money in the Last Six Months

At MAPsignals, we follow the Big Money because it tends to produce outlier stocks and drive markets. When price movements occur on big volumes, it’s often intuitions, pension funds, and other “whale” investors influencing the swings. We created the Big Money Index (BMI) to track this activity and help show where markets could go.

When it’s hit oversold in the past, big returns followed. Well, the BMI recently hit oversold levels (the green horizontal line), but as you can see, it’s quickly snapped back:

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That’s due to a decrease in selling and more sustained buying:

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We’re seeing lots of buying in the energy sector. The materials, real estate, and industrials sectors are expected to grow too based on earnings, per FactSet. This shows how growth stocks not always tech related. They can be in any in any industry that’s growing.

The best outlier stocks (regardless of sector) have three common traits: strong fundamentals, great technicals, and a history of Big Money activity in the shares. At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. And we want the odds on our side when looking for the highest quality stocks.

Focusing on quality is critical when markets are under pressure. Using the MAPsignals database, we’ve filtered for strong fundamentals and future growth to identify five ideas for potential long-term investment: PXD, COP, ADM, VRTX, & META.

Pioneer Natural Resources Company (PXD) Analysis

Up first is Pioneer, an oil and gas exploration company focused on Texas that pays a current dividend of more than 4.3%.

Even though great stocks can be volatile, like PXD this year, these companies are worthy of attention, especially when they grow earnings and return lots of cash to investors. Check out PXD:

  • 1-month performance (+5.6%)
  • Historical Big Money signals

Just to show you what our Big Money signals look like, have a look at the top buy signals PXD has made over time in the chart below. Blue bars are showing it 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:

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Source: www.MAPsignals.com

But, what about fundamentals? As you can see, PXD’s sales and profits have been strong:

  • 1-year sales growth rate (+154.4%)
  • Profit margin (+11.8%)

ConocoPhillips (ODFL) Analysis

Next up is ConocoPhillips, the huge, global energy company with a nearly 1.6% current dividend.

Check out these technicals for COP:

  • 1-month performance (+13.9%)
  • Historical Big Money signals

Let’s look longer-term. This is the Big Money action on ConocoPhillips since 2016, and it’s clear that if you bought when Big Money was selling, you’d be doing quite well:

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Source: www.MAPsignals.com

Now let’s dive deeper. As you can see, ConocoPhillips has had double-digit growth in sales and big profits:

  • 3-year sales growth rate (+30.8%)
  • Profit margin (+17.5%)

Archer-Daniels-Midland Company (ADM) Analysis

The third growth stock idea is Archer-Daniels-Midland, the agricultural commodities processor.

Strong candidates for growth usually have Big Money buying the shares. Archer-Daniels-Midland has that. Also, the stock has fallen recently:

  • 1-month performance (-0.2%)
  • Historical Big Money signals

Below are the Big Money signals ADM has made since 2016. That’s the JUICE!

Chart

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Source: www.MAPsignals.com

Now let’s look under the hood. Archer-Daniels-Midland’s sales growth is solid. And given its strong sales, valuation, and current 1.8% dividend, I expect more growth in the coming years:

  • 3-year sales growth rate (+10.9%)
  • Forward price-to-earnings ratio (8.2x)

Vertex Pharmaceuticals Incorporated (VRTX) Analysis

Number four on the list is a health care giant and long-time Big Money favorite, Vertex. It creates treatments for the world’s most serious diseases, like cystic fibrosis and muscular dystrophy.

Here are the technicals important to me:

  • 1-month performance (+7.1%)
  • Historical Big Money signals

It’s a hugely successful stock. Below are the Top 20 Big Money buy signals for VRTX since 2018 – it’s been a Top 20 buy more than 20 times since then:

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Source: www.MAPsignals.com

Let’s examine a bit more. Vertex has been growing sales nicely and expects earnings to grow too, likely due to its profit margin:

  • 1-year sales growth rate (+22.5%)
  • 2-year vs. 1-year EPS growth estimate (+7.9%)
  • Profit margin (+30.8%)

Meta Platforms, Inc. (META) Analysis

Our last growth candidate – Meta, the parent company of Facebook and Instagram – is a beaten-down giant in the technology industry. Meta helps connect people worldwide and is a huge player in advertising.

Check out these technicals:

  • YTD performance (-42.0%)
  • Historical Big Money signals

META is more than 270 days from its 52-week high, but believe me, it’s still a high-quality stock. It’s made the MAPsignals Top 20 report many times since 2015:

Source: www.MAPsignals.com

Now look under the hood. META has been growing sales and earnings at big rates, its outlook is solid, and the valuation is attractive:

  • 1-year sales growth rate (+37.2%)
  • 3-year EPS growth rate (+26.4%)
  • 2-year vs. 1-year EPS growth estimate (+19.4%)
  • Forward price-to-earnings ratio (16.7x)

Bottom Line and Explanatory Video

PXD, COP, ADM, VRTX, & META represent top growth stocks to buy now for June 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention for long-term investors, despite being in non-traditional growth sectors or suffering recent dips.

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

Disclosure: the author holds no positions in PXD, COP, ADM, VRTX, or META.

Contact

https://mapsignals.com/contact/

Wall Street Week Ahead Earnings: Dick’s Sporting, Campbell Soup and Oracle in Focus

Investors have been rattled by geopolitical tensions over the Russia-Ukraine crisis, which has caused the global stock market to suffer. The S&P 500 plunged into correction territory.

If this tension continues for long, analysts fear that it will be harder for the U.S. Federal Reserve to raise rates after this month’s hike. Due to this, investors sought safe-haven assets and U.S. Treasury yields fell as tensions between Ukraine and Russia increased.

In addition, investors will focus on December quarter earnings for stocks that are economically sensitive, which should show better profits than technology stocks amid surging inflation.

Earnings By Day

Earnings Calendar For The Week Of March 7

Monday (March 7)

TICKER COMPANY EPS FORECAST
CIEN Ciena $0.36
CLAR Clarus $0.31
EGRX Eagle Pharmaceuticals $0.41
SQSP Squarespace $-0.03
VET Vermilion Energy $0.57

 

Tuesday (March 8)

IN THE SPOTLIGHT: DICK’S SPORTING

The sporting goods retailer Dick’s Sporting Goods is expected to deliver earnings per share of $2.75 in the holiday quarter, which represents year-over-year growth of over 13% from $2.43 per share seen in the same period a year ago.

The Coraopolis Pennsylvania-based company would post revenue growth of more than 5% to $3.29 billion from $3.13 billion a year earlier. The company has beaten consensus earnings estimates in most of the quarters in the last two years, at least.

Dick’s Sporting Goods (DKS) is in a favourable position given its category dominance, industry tailwinds, and healthy balance sheet. Its outlook within the category is likely to be even stronger post-COVID-19. We see a positive risk/reward skew based on our view the earnings power of the business is underappreciated. Key drivers include merchandise margin expansion and capital return (buybacks). We think there is upside for the stock without underwriting a higher valuation multiple as a result,” noted Simeon Gutman, equity analyst at Morgan Stanley.

“The stock’s multiple has not broken out like it has for other retailers in our space which should emerge stronger post-COVID-19. The potential for multiple expansion adds optionality/upside to the bull case.”

A list of other earnings reports mentionable

COMPANY EPS FORECAST
ABM ABM Industries $0.82
BMBL Bumble $-0.02
WOOF Petco Health & Wellness $0.23
VTNR Vertex Energy $0.09

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MARCH 8

Wednesday (March 9)

IN THE SPOTLIGHT: CAMPBELL SOUP

The Camden, New Jersey-based soups and snacks maker Campbell Soup is expected to report earnings per share of $0.78 in the fiscal second quarter, which represents a year-over-year decline of over 7% from $0.84 per share seen in the same period a year ago.

Analysts expect that easing COVID-19 curbs and consumers eating out more would affect the company’s processed food sales. Campbell’s revenue was forecast to decline nearly 3% to $2.21 billion. However, it is worth noting that the maker of canned soup has beaten consensus earnings estimates in most of the quarters in the last two years, at least.

“High exposure to secularly challenged soup category: Shelf-stable soup (26.5% of sales) faces headwinds given shifts in preferences toward better-for-you and fresh foods, competition from private label, and pricing pressure. Snacking brands are well-positioned, but face competitive pressures: Milano, Goldfish, Farmhouse, and Snyder’s-Lance have strong brand equity, but face high competition from PEP and MDLZ,” noted Pamela Kaufman, equity analyst at Morgan Stanley.

“Significant organizational changes over last two years refocused the company and show promise: Divesting non-core businesses and new leadership refreshes the company’s strategic plan, allowing the company to focus on its key segments and geographies.”

A list of other earnings reports mentionable

TICKER COMPANY EPS FORECAST
CPB Campbell Soup $0.78
EXPR Express $0.08
KFY Korn Ferry $1.48
LCUT Lifetime Brands $0.46
REVG REV Group $0.09
THO Thor Industries $2.91

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MARCH 9

Thursday (March 10)

IN THE SPOTLIGHT: ORACLE

The world’s largest database management company, Oracle, is expected to report earnings per share of $1.0 in the fiscal third quarter, which represents a year-over-year decline of nearly 3% from $1.03 per share seen in the same period a year ago.

The Austin, Texas-based computer technology corporation would post revenue growth of more than 4% to $10.5 billion from $10.1 billion a year earlier. The company has beaten consensus earnings estimates in most of the quarters in the last two years, at least.

“A preliminary look at a potential Oracle + Cerner Pro-forma model suggests modest EPS accretion by CY23, assuming Oracle shifts capital allocation priorities and halts the torrid pace of buybacks. Our illustrative analysis shows leverage exiting CY23 at 3.2x, assuming a deal at 32% cash/68% debt,” noted Keith Weiss, equity analyst at Morgan Stanley.

In December, several equity analysts raised their price targets after the database management company beat earnings estimates for the fiscal second quarter and forecasts profit and revenue above expectations for the ongoing quarter.

The company expects to earn $1.19 to $1.23 per share in the fiscal third quarter, higher than the Wall Street consensus estimates of $1.16. Revenue is expected to be $10.7 billion to $10.9 billion, above expectations of $10.56 billion, Reuters reported.

Oracle’s current low valuation at ~18x CY22e EPS reflects its slower growth rate compared to peers. Despite potential opportunities within existing database customers and cloud-based ERP applications, offsets from waning businesses mean 2021 likely lacks the catalysts for the positive inflection in revenue growth investors would need to see to drive multiples higher. With management guiding to mid-single-digit CC revenue growth in a software sector filled with strong secular growth stories, and operating margins declining in FY22 due to heightened investment in Cloud, we remain Equal-weight while our price target moves up to $87,” Weiss added.

A list of other earnings reports mentionable

TICKER COMPANY EPS FORECAST
GCO Genesco $2.53
JD JD.com $0.14
LZ LegalZoom.com $-0.09
MLNK MeridianLink $-0.02
PSTL Postal Realty Trust $0.23

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE MARCH 9

Friday (March 11)

TICKER COMPANY EPS FORECAST
BKE Buckle $1.29
GENI Genius Sports $-0.23
PLXP PLx Pharma $-0.69
SPNE SeaSpine Holdings $-0.33

 

Best ETFs For June 2021

A portfolio of outlier stocks can become chock full of monster gains for years to come, if chosen wisely.

But wouldn’t it be great if there was already a collection of outliers we could buy without even having to think about it?

Well maybe there is a way to do just that… through outlier ETFs.

So, here I’m going to give you the best ETFs that big money is getting involved in this month.

First thing’s first: to find them, I looked at all the ETFs making Big Money signals. I did that by heading over to MAPsignals.com and then looked at the Big Money ETF Buys and Sells chart. I looked at days with the biggest buying, circled here:

Once I had all the ETFs, I wanted to know which were the best potential opportunities. ETFs are baskets of stocks. And because MAPsignals scores over 6,000 stocks every day, as long as I know which stocks make up the ETFs, I can rank them all.

Here are the 5 best ETFs with scores: The Composite score, Technical score, and Fundamental score. These were computed by accounting for each components stock’s score and its associated weighting in the ETF. (keep in mind that weightings will change from time to time)

Below we see each ETF, their recent Big Money activity, and their scores. XLF, ITB, and XLC are top ranked ETFs. That makes sense because financials, home builders, and communications stocks have been leading the market much of this year so far.

IGV and ARKG, however, rank low on our list of ETFs. But there is opportunity here because the low scores are due to weak technicals. Big Money has been selling these ETFs, largely because they are heavily concentrated in growth stocks. But these stocks have excellent fundamentals: growing sales and earnings and big profits. These weak ETFs represent great potential bargains.

Let’s quickly look at the year-to-date performance of these 5 ETFs:

  • XLF +29.3%
  • ITB +29.2%
  • XLC +13.5%
  • IGV -4.0%
  • ARKG -18.1%

Now let’s quickly look at Big Money buying in the ETFs. Each chart below has many green bars which represents unusually large buying. The few red bars represent unusually large selling. What jumps out is the huge buying in all the ETFs.

Only with IGV and ARKG, there was recent selling too. But again, selling on ETFs and stocks with great fundamentals represents a value opportunity.

Source: www.mapsignals.com, End of day data sourced from Tiingo.com

Here’s why I like these ETFs: they are highly concentrated with fundamentally superior stocks. Below we see a table of three stocks in each ETF. They are some of the highest weightings in each.

Notice their fundamental scores are very strong on a scale from 0-100. This means strong growing sales, earnings, and profits over one and three years. This is how MAPsignals boils down all its fundamental research into one elegant score.

Now with XLF, ITB, and XLC – we see the stocks also have strong technical scores. That means Big Money has been pouring into them, lifting them to new highs. They are buoyant with Big Money support. But in IGV and AKG, we see weak technical scores. This means Big Money has been exiting the stocks.

But before you get spooked, let’s keep the recent environment in mind: Growth has fallen out of favor while value and reopen stocks have become all the rage. But it’s essential to remember these growth companies create phenomenal products and services enhancing our lives. I don’t foresee that stopping in the future. The recent selling is temporary and thematic.

What really drives this home is looking at how long-term Big Money buying can lead to monstrous gains. Below are charts showing all the instances these stocks were Top stocks in our research since 2015: our weekly report of outliers. We don’t need to go into details on each chart.

I’d like you to notice a few things:

  • When Big Money buying pours in, stocks go up
  • Repeated outliers, especially for years often means outsized gains

Owning outlier stocks is the way I try to beat markets. Easy exposure to many stocks can be achieved by buying ETFs. But just like anything, you must be in the 1% if you want to be in the 1%.

We can find outlier ETFs by tracking the Big Money. But that alone isn’t enough: when we catalog the components and find outlier stocks underneath… that’s the winning recipe.

So, there you have it: the 5 best ETFs that Big Money has been trafficking in recently. Outlier ETFs hold outlier stocks. Finding them is the key to finding potentially outlier gains.

Now let’s look at what those look like:

Source: www.mapsignals.com, End of day data sourced from Tiingo.com

The Bottom Line

XLF, ITB, XLC, IGV, & ARKG represent top ETFs for June 2021. Financials, homebuilders, & Communications stocks have performed well lately, which should continue. Software and Genomics companies have reached interesting levels, too. Paying attention to the fundamental quality of ETF constituents is paramount.

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

Disclosure: the author holds long positions GOOGL, CRM, & REGN in managed accounts, but no positions in XLF, ITB, XLC, IGV, ARKG, BLK, SCHW, SPGI, DHI, LEN, LOW, FB, ATVI, ADBE, MSFT, TDOC, & VRTX at the time of publication.

Investment Research Disclaimer

Earnings to Watch Next Week: Pfizer, Alibaba, Amazon, Alphabet and Qualcomm in Focus

Earnings Calendar For The Week Of February 1

Monday (February 1)

IN THE SPOTLIGHT: VERTEX PHARMACEUTICALS, NXP SEMICONDUCTORS, ON SEMICONDUCTOR

VERTEX PHARMACEUTICALS: The biopharmaceutical company is expected to report a profit of $2.55 in the fourth quarter, which represents year-over-year growth of 50% from the same quarter a year ago when the company reported $1.70 cents per share.

However, Wall Street forecasts the company’s revenue to grow about 12% to $1.58 billion.

“Q4 estimates for Vertex‘s CF franchise appear achievable based on recent trends. With industry-leading growth and its fundamentals largely intact despite COVID-19, we expect the current dislocation between Vertex Pharmaceuticals’ (VRTX) trading price and the value of its CF franchise to be only temporary. We would use the recent stock weakness to build a position,” said equity analysts at Cowen and Company, who also gave a price target of $300.

NXP SEMICONDUCTORS: Eindhoven, Netherlands-based semiconductor manufacturer will post earnings of $2.11 per share in the December quarter on revenue of $2.46 billion, up from $1.98 per share on revenue of $2.30 billion same quarter last year. For the December quarter, the forecasts revenue in the range of $2.375-$2.525 billion which, at the midpoint, represents growth of 8% sequentially and 6% year-over-year.

“Management remains upbeat about near-term demand, including 2021, especially regarding its mobile chip business as the firm’s ultra-wideband connectivity solutions are rapidly gaining adoption within newer smartphones. We raise our fair value estimate to $150 from $130, and with shares trading around $134, we view shares as slightly undervalued,” said equity analysts at Cowen and Company.

ON SEMICONDUCTOR: Phoenix, Arizona-based semiconductors supplier company will post earnings of $0.28 per share for last quarter of 2020. The revenue is expected to slump 3.0% on a year-over-year basis.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 1

Ticker Company EPS Forecast
TMO Thermo Fisher Scientific $6.52
OTIS Otis Worldwide Corp $0.59
RYAAY Ryanair -$1.11
ON ON Semiconductor $0.28
AEIS Advanced Energy Industries $1.34
ITUB Itau Unibanco $0.10
CACC Credit Acceptance $7.22
WWD Woodward $0.68
NXPI NXP Semiconductors $2.11
RMBS Rambus $0.25
ARE Alexandria Real Estate Equities $0.48
KRC Kilroy Realty $0.36
CRUS Cirrus Logic $1.86
OMCL Omnicell $0.80
KMPR Kemper $1.55
PCH Potlatch $1.37
KMT Kennametal $0.09
FN Fabrinet $1.04
IBTX Independent Bank $1.33
CBT Cabot $0.87
VRTX Vertex Pharmaceuticals $2.55
BKRKY Bank Rakyat $0.17
BECN Beacon Roofing Supply $0.63
LBRDK Liberty Broadband Lbrdk $1.06
IX Orix $1.95
RBC Regal Beloit Corporation $1.57
MFG Mizuho Financial $0.08

 

Tuesday (February 2)

IN THE SPOTLIGHT: PFIZER, ALIBABA, AMAZON, ALPHABET

PFIZER: The world’s largest pharmaceutical giant is expected to report a profit of $0.52 in the fourth quarter, which represents a year-over-year decline of about 5.4% from the same quarter last year when the company reported $0.55 per share.

The pharmaceutical company, which ranked 64th on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue, will report revenue of $12.85 billion, up 1.3% from the year-ago quarter. According to chief executive officer Albert Bourla, Pfizer is likely to post this year’s earnings in the range of $3 to $3.10 per share.

“We lowered our 4Qe revenue by 5% from $11.6B to $11.0B and EPS by 6% from $0.40 to $0.38 to reflect lower doses delivered in 4Q. We lowered our 4Q COVID vaccine revenues from $683M to $150M (assuming $19.50/dose). Our prior model assumed 35M doses, which we lowered to 7.7M doses based upon CDC distribution allocations,” said David Risinger, equity analyst at Morgan Stanley.

“Our 4Q projections are well below consensus, but we do not see 4Q results as a stock driver given all of the confounding factors. We are instead focused on management’s 2021 targets.”

ALIBABA: The largest online and mobile e-commerce company in the world is expected to earn $2.65 per share for the third quarter, according to equities analysts at Oppenheimer. Oppenheimer also set EPS estimates for FY2021 at $7.48 and FY2022 at $9.33.

The Chinese multinational technology company has surpassed consensus estimates with an average of about 25% in all four previous quarters.

“We expect healthy GMV growth of 16% to drive core of core revenue growth of 18% on better monetization, but slower adjusted EBITA growth of 11% due to continued investment in new initiatives. Stay Overweight on F2022e non-GAAP P/E of 19x; lower price target to $320,” said Gary Yu, equity analyst at Morgan Stanley.

“We forecast total revenue of Rmb216bn (+33.8% YoY, +39.3% QoQ), non-GAAP EBITA of Rmb61.5bn (+21.4% YoY, +49.2% QoQ) with margin at 28.5% and non-GAAP net profit of Rmb57.2bn (+17.7% YoY, +16.1% QoQ) with margin at 26.5%.”

AMAZON: The eCommerce leader for physical and digital merchandise is expected to report a profit of $7.16 in the fourth quarter, which represents a year-over-year decline of over 10% from the same quarter last year when the company reported $6.47 per share.

The Seattle, Washington-based multinational technology giant will report revenue of $120.4 billion, up over 37% from the year-ago quarter. The company expects net sales between $112- $121 billion during the quarter.

Amazon‘s high-margin businesses continue to allow Amazon to drive greater profitability while still continuing to invest (last-mile delivery, fulfilment, Prime Now, Fresh, Prime digital content, Alexa/Echo, India, AWS, etc),” noted Brian Nowak, equity analyst at Morgan Stanley.

Amazon Prime membership growth drives recurring revenue and a positive mix shift. Cloud adoption hitting an inflection point. Advertising serves as a key area for both further growth potential and profitability flow-through.”

ALPHABET: The parent of Google and the world’s largest search engine, which dominates Internet search activity globally will post earnings of $15.68 per share for last quarter of 2020. The consensus mark for revenues is pegged at $44.09 billion, implying growth of 17.3% from the year-ago reported figure, according to ZACKS Research.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 2

Ticker Company EPS Forecast
HOG Harley Davidson $0.21
WAT Waters $2.87
ST Sensata Technologies $0.78
HUBB Hubbell $1.76
LITE Lumentum Holdings Inc $1.89
AMG Affiliated Managers $3.68
HAE Haemonetics $0.65
MAN ManpowerGroup $1.14
GPK Graphic Packaging $0.27
ABG Asbury Automotive $4.11
ATHM Autohome $9.54
MDC MDC $1.73
PFE Pfizer $0.52
XOM Exxon Mobil $0.01
UPS United Parcel Service $2.14
BP BP $0.08
HCA HCA $3.57
RACE Ferrari $1.24
EMR Emerson Electric $0.68
ETN Eaton $1.21
COP ConocoPhillips -$0.25
IDXX Idexx Laboratories $1.39
SYY Sysco $0.34
MCK McKesson $4.14
MPC Marathon Petroleum -$1.27
SIRI Sirius XM $0.06
MPLX MPLX $0.63
CTLT Catalent $0.55
BR Broadridge Financial Solutions $0.71
ENTG Entegris $0.66
TECH Bio Techne $1.37
BEN Franklin Resources $0.72
LII Lennox International $2.65
MMP Magellan Midstream Partners $0.85
BABA Alibaba $20.59
SANM Sanmina $0.81
MTCH Match Group $0.50
DOX Amdocs $1.14
MANH Manhattan Associates $0.32
POWI Power Integrations $0.44
MKL Markel $9.04
TENB Tenable Holdings Inc $0.05
FEYE FireEye $0.10
EPAY Bottomline Technologies $0.28
ATGE Adtalem Global Education Inc $0.67
MRCY Mercury Systems $0.51
BRKS Brooks Automation USA $0.42
GL Globe Life Inc $1.72
APAM Artisan Partners Asset Management $1.02
AMGN Amgen $3.39
CB Chubb $2.82
EA Electronic Arts EA $2.94
CMG Chipotle Mexican Grill $3.73
PKI PerkinElmer $2.95
STE Steris $1.52
AMCR Amcor PLC $0.17
FBHS Fortune Brands Home Security $1.16
ATO Atmos Energy $1.57
BCH Banco De Chile $0.31
AMZN Amazon $7.16
GOOG Alphabet $15.70
GOOGL Alphabet $15.68
SMFG Sumitomo Mitsui Financial $0.19
ASEKY Aisin Seiki Co $1.19
SNE Sony $0.80
RCL Royal Caribbean Cruises -$5.04
TDG TransDigm $2.09
IT Gartner $0.82
QGEN Qiagen $0.66
NPSKY NSK ADR $0.19
JKHY Jack Henry Associates $0.88
IPHI Inphi $0.88
SWI Solarwinds $0.25
BDC Belden $0.75
ILMN Illumina $1.10
BP BP £0.01

 

Wednesday (February 3)

IN THE SPOTLIGHT: QUALCOMM

QUALCOMM: San Diego, California-based multinational corporation that creates an intellectual property, semiconductors, software, and services related to wireless technology is expected to report a profit of $2.10 in the fiscal first quarter, which represents year-over-year growth of over 110% from the same quarter last year when the company reported $0.99 per share.

The semiconductor company will report revenue of $80.3 billion, up over 60% from the year-ago quarter.

“We see an improvement in smartphone demand in 2021 after declining 5% in 2020 due to COVID-19. We also see 5G adding greater dollar content and supporting industry-wide handset volume growth. Qualcomm’s (QCOM) leadership in cellular technologies (3G/4G/5G) puts the company in a favourable position to maintain leading market share,” wrote Joseph Moore, equity analyst at Morgan Stanley.

“The potential elimination of a major competitor in the Chinese market, HiSilicon, should benefit QCOM as Huawei currently does not pay royalties. To the extent competitors that do pay royalties are able to pick up market share, that would be beneficial for QCOM.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE FEBRUARY 3

Ticker Company EPS Forecast
ABBV AbbVie $2.85
LAD Lithia Motors $5.23
APTV Aptiv PLC $1.01
HUM Humana -$2.37
BIP Brookfield Infrastructure $0.10
HWM Howmet Aerospace Inc $0.17
GWW Grainger $3.84
SC Santander Consumer USA $1.10
BIIB Biogen $4.75
CHKP Check Point Software Technologies $2.11
LFUS Littelfuse $1.58
BSX Boston Scientific $0.31
DT Dynatrace Holdings $0.13
SPOT Spotify -$0.53
APO Apollo Global Management $0.50
INGR Ingredion $1.46
SMG Scotts Miracle-Gro -$0.77
CPRI Capri Holdings Ltd $0.97
MSGS Madison Square Garden Sports -$1.67
EVR Evercore Partners $1.93
EPD Enterprise Products Partners $0.50
SLAB Silicon Laboratories $0.74
ASH Ashland $0.69
MUSA Murphy USA $2.14
ALGT Allegiant Travel -$2.27
BSMX Santander Mexico Fincl Gp Sab Decv $0.14
CENTA Central Garden Pet -$0.01
RGLD Royal Gold Usa) $0.86
ALGN Align Technology $2.14
AXTA Axalta Coating Systems $0.43
THG Hanover $2.34
AFL Aflac $1.05
KLAC KLA-Tencor $3.18
MAA Mid-America Apartment Communities $0.59
GRUB GrubHub $0.07
AVB AvalonBay Communities $0.85
CTSH Cognizant Technology Solutions $0.90
VVV Valvoline Inc $0.37
RYN Rayonier $0.05
QCOM Qualcomm $2.10
LNC Lincoln National $1.92
MET MetLife $1.52
CTVA Corteva Inc -$0.05
UHAL Amerco $0.12
QRVO Qorvo $2.66
MXL MaxLinear $0.36
ANGI Angie’s List -$0.02
HI Hillenbrand $0.73
CCMP Cabot Microelectronics $1.73
UGI UGI $1.13
KLIC Kulicke And Soffa Industries $0.71
AFG American Financial $2.13
IEX IDEX $1.31
FORM FormFactor $0.39
EBAY eBay $0.83
MITSY Mitsui & Company $7.96
LGND Ligand Pharmaceuticals $0.99
RAMP Liveramp Holdings Inc $0.06
NVO Novo Nordisk A Fs $0.60
TMHC Taylor Morrison Home $0.82
AVY Avery Dennison $2.08
SAVE Spirit Airlines -$1.40
GSK Glaxosmithkline $0.62
IRBT Irobot $0.21
COTY Coty $0.09
PAG Penske Automotive $2.11
COHR Coherent $0.78
DTE DTE Energy $1.33
ENSG Ensign $0.79
FLO Flowers Foods $0.24
SKM Sk Telecom $0.22
IBA Industrias Bachoco Sab De Cv $0.63
NEU NewMarket $5.60
BBD Banco Bradesco $0.11
PYPL PayPal $1.00
NMR Nomura $0.18
BSBR Banco Santander Brasil $0.17
SAN Banco Santander $0.06

 

Thursday (February 4)

Ticker Company EPS Forecast
GPI Group 1 Automotive $5.94
ALXN Alexion Pharmaceuticals $2.58
NYT New York Times $0.34
BCE BCE (USA) $0.59
BMY Bristol-Myers Squibb $1.41
NJR New Jersey Resources $0.46
PM Philip Morris International $1.21
CMI Cummins $2.80
TPR Tapestry Inc $0.99
ARW Arrow Electronics $2.67
CMS CMS Energy Corporation $0.55
BAX Baxter International $0.75
YUM Yum Brands $1.01
CG Carlyle $0.44
CLX Clorox $1.77
AGCO AGCO $1.12
MPW Medical Properties $0.27
ABB ABB $0.18
JHG Janus Henderson Group PLC $0.73
CI Cigna $3.66
MMS Maximus $0.91
MRK Merck & Co $1.38
WEC Wisconsin Energy $0.73
XYL Xylem $0.68
TW Towers Watson $0.33
PENN Penn National Gaming $0.26
HSY Hershey $1.43
PH Parker-Hannifin $2.60
ICE Intercontinental Exchange $1.08
BSAC Banco Santander Chile $0.34
RL Ralph Lauren $1.64
SNA Snap-On $2.94
DGX Quest Diagnostics $3.98
ODFL Old Dominion Freight Line $1.57
COR CoreSite Realty $0.45
WD Walker & Dunlop $1.47
TKR Timken $0.92
IP International Paper $0.81
AME Ametek $1.03
BLL Ball $0.78
PBH Prestige Brands $0.77
ABC AmerisourceBergen $1.94
APD Air Products & Chemicals $2.18
LEA Lear $3.43
LANC Lancaster Colony $1.48
PTON Peloton Interactive, Inc. $0.08
SU Suncor Energy USA -$0.17
SKX Skechers USA $0.32
MTD Mettler Toledo International $8.72
PCTY Paylocity $0.25
ARWR Arrowhead Research -$0.22
SNAP Snap -$0.07
FTV Fortive Corp $0.62
NWSA News Corp $0.09
DECK Deckers Outdoor $7.06
EXPO Exponent $0.28
FTNT Fortinet $0.97
ALL Allstate $3.83
MDU MDU Resources $0.54
SYNA Synaptics $2.13
TDC Teradata $0.25
FLT Fleetcor Technologies $2.82
NBIX Neurocrine Biosciences $0.59
POST Post $0.71
CSL Carlisle Companies $1.16
NOV National Oilwell Varco -$0.14
GILD Gilead Sciences $2.01
WERN Werner $0.78
ESS Essex Property $1.02
CPT Camden Property $0.35
MPWR Monolithic Power Systems $1.24
WWE World Wrestling Entertainment $0.29
LPLA LPL Financial $1.33
OFC Orate Office Properties $0.38
ZEN Zendesk $0.15
MTX Minerals Technologies $0.91
PFPT Proofpoint $0.42
MSI Motorola Solutions Msi $2.74
COLM Columbia Sportswear $1.24
ATVI Activision Blizzard $1.17
F Ford Motor -$0.08
UNM Unum $1.19
HIG Hartford Financial Services $1.33
PRU Prudential Financial $2.57
DXC DXC Technology Co $0.54
KB Kb Financial $1.50
CHT Chunghwa Telecom $0.36
MCHP Microchip Technology $1.58
NWS News $0.09
AIV Apartment $0.67
SSUMY Sumitomo ADR $0.26
DB Deutsche Bank -$0.03
OHI Omega Healthcare Investors $0.41
KWHIY Kawasaki Heavy Industries ADR -$0.18
PFSI Pennymac Financial Services $5.90
TRNO Terreno Realty $0.37
BCO Brinks $1.04
VSAT Viasat $0.02
YAMCY Yamaha DRC $0.47
RDSA Royal Dutch Shell £0.17
NRZ New Residential Investment $0.33
RICOY Ricoh Company -$0.06
WYNN Wynn Resorts -$2.29
ITOCY Itochu ADR $1.87
TOT Total $0.46
MYGN Myriad Genetics -$0.12
BDX Becton, Dickinson and Co. $3.07
ARNC Arconic Inc $0.32
TM Toyota Motor $3.65
RHHBY Roche Holding ADR $1.28
CDW CDW $1.53
ARRY Array Biopharma $0.05
HL Hecla Mining $0.02
TWOU 2U -$0.10
ALNY Alnylam Pharmaceuticals -$1.88
DD DuPont $0.85
CARR Carrier Global Corp $0.37
OMVJF OMV $0.74
TPL Texas Pacific Land $4.54
AUOTY AU Optronics $0.27

 

Friday (February 5)

Ticker Company EPS Forecast
HRC Hill-Rom $1.05
ADNT Adient PLC $0.87
TT Trane Technologies PLC $0.92
LAZ Lazard $0.97
SNY Sanofi $0.69
EL Estée Lauder $1.68
LIN Linde PLC $2.16
AON AON $2.46
ZBH ZIMMER BIOMET HDG. $2.07
ITW Illinois Tool Works $1.79
REGN Regeneron Pharmaceuticals $8.23
CAH Cardinal Health $1.44
SPB Spectrum Brands $0.75
BERY Berry Plastics $0.94
HMC Honda Motor $0.75
NFG National Fuel Gas $0.99
CHBAY Chiba Bank ADR $0.77
SOMLY Secom ADR $0.26
ASX Advanced Semiconductor Engineering $0.12
BNPQY BNP Paribas ADR $0.55
FE FirstEnergy $0.50

 

3 Stock Sectors with the Biggest Potential in 2020

However, we need to define what we mean by the biggest potential. We mean stocks that give the potential for good returns in terms of percentage returns on investment. We will not include sectors that necessarily pay the highest dividends as this will be a bit too limiting.

Also, there are alternative ways of getting your investment funds into these sectors apart from buying the stocks directly. You may buy options or even get into funds that provide sectorial exposure so as to maximize returns with as little risk as possible.

So without further ado, here are the three stock sectors with the biggest potential in 2020.

Healthcare Stocks

Advances in various aspects of healthcare in the last three years have made this sector a pretty hot one. Some people call these the biotechnology stocks. They are mostly listed on the Nasdaq. This is where you will find stocks such as EDITAS, CRSP Pharmaceuticals, Vertex Pharmaceuticals and Acadia Pharmaceuticals.

Companies in this sector have been involved in ground-breaking research into areas such as genome editing, which aims to use gene-based therapies to treat previously incurable ailments such as sickle cell disease and cystic fibrosis. Other companies are revolutionizing treatments and diagnostic processes, or developing new medication to replace existing ones.

Traditionally, these companies usually see bursts of growth in their share price whenever they make a major product breakthrough or get a huge approval from the Food and Drug Administration (FDA) in the US. With companies such as EDITAS already in advanced clinical trials, watch out for big announcements from some of the biotech stocks that will make them quite attractive to investors.

Semiconductor Stocks (Chipmakers)

Chipmakers did not have a good 2019 as a result of the US-China trade war. However, a key event this year may change everything for chipmakers. The Bitcoin halving event is due to come up in May 2020. This will reduce by half, the yield for every Bitcoin block that is mined on the blockchain. Already, Bitcoin has been mined by more than 85%. Some of the already mined Bitcoin has either been stolen, being hoarded or lost forever.

Therefore, with very little BTC left to mine, and with cryptocurrencies forecast to have a generally bullish year, we feel that there will be a race to develop even more advanced mining rigs to grind out the last bits and pieces of Bitcoin that there ever will be. The race to develop the most advanced miners using graphic cards from chipmakers could be on. With chipmaker prices at the lower end of the rack, there could be good opportunities in these stocks in 2020.

Technology Stocks

Just take a look at what some of the tech companies are already doing on the Nasdaq and S&P 500 in the first two weeks of 2020 and you will know why this category of stocks has been added to this list. The technology companies listed in the S&P 500 have doubled the returns on the market in the last 5 years, posting a healthy 109% returns and trumping nearly every other sector.

In fact, tech stocks returned 40% in 2019 alone. In contrast, energy stocks have dropped more than 30% in the last 5 years! So why should tech stocks not be on the top 3 sectors with the biggest potential in 2020?

Picking Stocks in the Sectors with Biggest Potential

This is not a specific buy and sell recommendation, but rather a guide on what to look for when researching stocks from these sectors to invest in. Ideally, you need to look at the earnings reports of your potential interests to see if they are doing the following:

  1. Are they increasing sales and revenue over time?
  2. Are they having healthier operating margins when compared to other companies in the same sector? Operating margin is derived by dividing the year’s income by the total sales figure for the quarter, or on an annualized basis.

Ok, let’s cut out all the terminologies that may confuse beginners. You need to check to see if the company you want to invest in is actually making larger amounts of money or not. What is the returns on investment like? In the case of biotech stocks, are you attracting investment and meeting the milestones for a research or a clinical trial?

These are the questions to answer so as to position yourself in the stocks from these three sectors that can turn your finances around.