Stocks on Wall Street ended a mixed week on Friday on a mixed note, as investors continued to weigh fears about the rise, which could prompt the Federal Reserve to reverse its stimulus earlier than expected.
The blue chip and benchmark both suffered their first back-to-back weekly losses since February, down 0.5% and 0.4% respectively. However, the tech-heavy managed to hit a 0.5% gain in the same time frame.
DOW, S&P 500 and NASDAQ Chart
This week we'll see another series of high-profile earnings reports from companies like Nvidia (NASDAQ :), Salesforce (NYSE :), Costco (NASDAQ 🙂 and Best Buy (NYSE :). Add to that the release of additional key economic data, all of which should make the next week a busy week.
Regardless of the direction the market takes, we have highlighted one stock that is likely to be in demand and the other that could see a further slump.
However, keep in mind that our timeframe is for the next week only.
Stock To Buy: Dick & # 39; s Sporting Goods
Dick & # 39; s Sporting Goods (NYSE 🙂 will be in the spotlight this week as investors await the latest financial results from the country's largest athletic retailer; it has beaten or matched Wall Street estimates for three consecutive quarters.
The retail chain has thrived this year, making it one of the notable big winners of retail in 2021. Since the beginning of the year, Dick’s Sporting Goods has seen its inventory increase by approximately 48%.
Even more impressively, stocks are up about 160% over the past 12 months, far outstripping the comparable returns of both the Dow and the S&P 500. outdoor activities.
DKS stock ended at $ 83.29 on Friday, ahead of its all-time high of $ 91.80 on May 10, valuing the Coraopolis, Pennsylvania-based company of approximately $ 7.4 billion. yielded.
Consensus expectations call for earnings per share (EPS) of $ 1.16 when Dick & # 39; s releases first quarter results ahead of Wednesday's opening bubble, better than a loss of $ 1.71 per share in the same period a year ago.
Sales are expected to grow 66% year-over-year to $ 2.21 billion, reflecting the strong growth of the sportswear and footwear businesses and strong demand for equipment for outdoor activities, such as golf clubs and bicycles.
In addition to the top and bottom line numbers, same-store sales of the company and e-commerce sales will also be monitored, after a record 19.3% and 57% growth respectively in the.
In addition, for the rest of the year, market players will pay close attention to the guidelines of the sporting goods retailer. After a cautious tone in the last quarter, investors hope that Dick's management will sound more optimistic on its full-year 2021 revenue growth outlook as it continues to benefit from favorable consumer trends and customer demand.
Stock To Dump: MicroStrategy
Stocks of MicroStrategy Incorporated (NASDAQ 🙂 – the software company that has increasingly become a popular coattail game – are expected to undergo another volatile week amidst the ongoing sell-off in the cryptocurrency market. ]
The plunge began earlier this month after controversial tweets from Tesla (NASDAQ 🙂 CEO Elon Musk. Sales gained momentum last week after China announced new crypto regulations and trade restrictions, while the US called for stricter compliance with the IRS to crack down on the risk of crypto tax evasion.
That led to Bitcoin falling a whopping 30% on Wednesday to a low of about $ 30,000. Although it rebounded to finish the week above $ 40,000 on Friday, prices have since fallen again in weekend trading.
The cryptocurrency, which peaked at $ 64,829.14 on April 16, last fell about 8% in action on Sunday and hovered around the $ 35,000 level.
It revealed last week that it had bought 229 Bitcoin tokens amid the latest sellout at an average price of $ 43,663, totaling $ 10.9 million. The company now owns 92,079 Bitcoins, acquired for $ 2.25 billion at an average purchase price of $ 24,450 per BTC.
Taking this into account, MicroStrategy's stock could decline further in the coming days as investors react to the violent swings in Bitcoin prices.
After hitting gains of nearly 250% through mid-February to date, MicroStrategy's stock has since lost momentum, dropping 48.5% over the past three months.
MSTR stock – which closed Friday's session at $ 450.52 – is now about 66% below its all-time high of $ 1,312.00 touched on Feb. 9. At its current level, the Tysons Corner, Virginia-based business analytics software provider has a market. limit of $ 4.3 billion.
Michael Saylor, CEO of MicroStrategy, will speak at this week's four-day Coindesk Consensus conference alongside other high-profile names such as Cathie Wood of ARK Invest, Ray Dalio of Bridgewater and Federal Reserve Governor Lael Brainard.
