Stocks on Wall Street ended higher on Friday, with benchmark and small cap indices both hitting new record highs as investors encouraged positive developments on the COVID-19 front.
However, the tech-heavy posted its third weekly loss in four weeks, as traders sold technology stocks and turned into cyclical names that would benefit from an economic recovery.
The next week is expected to be filled with more market-moving headlines as the number of coronavirus cases in the United States soars.
Here we will highlight one stock that has successfully traversed the market with whip saws and another stock that is likely to suffer sustained losses for the next few days as each stock reports its latest earnings results.
Share to Buy: Foot Locker
Foot Locker (NYSE 🙂 has been a high profile retailer in recent months, benefiting from the booming athleisure trend and the growing consumer preference for comfort in the present day. homely environment.
Shares of the Manhattan-based athletic apparel and footwear chain more than doubled from lows reached during the March coronavirus sell-off peak – up 113% – while sales are holding up better than expected.
The shoe giant saw its stock rise to $ 41.74 early last week, its highest level since before the COVID-19 outbreak. Foot Locker ended Friday at $ 37.24, giving it a valuation of $ 3.9 billion.
After reporting and revenue in the second quarter, the shoe retailer is expected to release third quarter results on Friday, November 20, before opening the US market.
Consensus calls for earnings of $ 0.53 per share, compared to earnings per share of $ 1.13 in the same period a year ago. Sales are expected to be $ 1.89 billion, which would be a slight decrease from sales of $ 1.93 billion in the same period a year earlier.
Investors will be keen to see if the sneaker buyer's sales at the same store can maintain their scorching growth rate after a nearly 19% jump in the second quarter, rebounding from a shocking nearly 43% drop in previous quarter.
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In addition, market players are hoping that Foot Locker will provide guidance for the key fourth quarter, which includes the Christmas shopping season, after failing to forecast results in the previous quarter, citing lingering uncertainty surrounding the pandemic.
Taking this into consideration, we expect Foot Locker to deliver another solid quarter, making it one of the best bets in athletic sportswear and footwear.
Stock To Dump: Macy & # 39; s
In contrast, Macy's (NYSE 🙂 stocks have been trapped in a spiral downward trend for most of 2020, while the department store chain struggles to find new ways to win over shoppers.
Like many major US retailers, the Manhattan omnichannel retail organization is suffering from declining store traffic and shoppers are turning to stores better known for their online shopping services.
The stock, which fell to an all-time low of $ 4.38 on April 2 and fell more than 56% year-to-date, closed at $ 7.36 on Friday, giving it a market cap of about $ 2.00. 3 billion.
Macy & # 39; s – which reported earnings and sales for the last quarter – then reports financial results ahead of its opening on Thursday, Nov. 19.
The consensus calls for a loss of $ 0.84 per share for the second quarter, up from a loss per share of $ 0.81 in the previous quarter and compared to earnings per share of $ 0.07 in the same period a year ago.
Meanwhile, sales are forecast to decline nearly 25% from the same period a year earlier to $ 3.88 billion, reflecting the department store vendor's continued difficulties in attracting customers during the outbreak of the coronavirus.
In addition to the top and bottom line numbers, investors will keep an eye on Macy & # 39; s update regarding the in-store and online sales numbers. Sales online and in Macy's stores that are open for a minimum of 12 months fell 35.1% in the first quarter.
Keeping this in mind, M shares appear to be under additional pressure in the coming days, potentially repeating the lows as investors brace themselves for another round of disappointing financial results.
