There is a new source of confrontational investors when markets resume normal trading on Monday, following the targeted assassination of Iranian military leader Major General Qassem Soleimani in an air raid on Thursday in Baghdad.
The complex nature of this conflict between the US and Iran, a regional power in the Middle East, makes it difficult to predict how it can affect the US economy, which is in a strong growth mode, and help domestic markets reach new highlights.
Despite economic optimism, equities are likely to come under pressure after this sharp escalation – at least in the short term. The Middle East will be the focal point for next week's trade.
However, some companies will report quarterly earnings in the coming week. We believe that these three stocks might see some price fluctuations after their reporting.
1. Walgreens
Walgreens Boots Alliance (NASDAQ :), the second largest pharmacy operator in the US, will announce its first quarter earnings on Wednesday, January 8 before the market opens. Analysts expect earnings per share of $ 1.41 per quarter in November with sales of $ 34.6 billion.
WBA Weekly
The Deerfield, Illinois-based company has implemented a cost-saving drive because its market share is coming under pressure with increasing competition from Amazon (NASDAQ 🙂 and other players. In October, the drug dealer said he plans to save another $ 300 million on his annual costs, as he expects in the current fiscal year.
The goal of the drugstore operator is to streamline its retail operations and give priority to the digital transformation of some functions. The company said in August that it plans to close 200 US locations on top of a previously announced reduction of no fewer than 750 stores.
The adjusted earnings per share in the fiscal year 2020 will be approximately equal to & # 39; Walgreens told investors at the time. Due to this pressure, its shares have fallen enormously behind the broader market in the past year, by more than 12%. Shares are closed unchanged on Friday at $ 59.08.
2. Bed, Bath & Beyond
If US consumers continue to spend in the last three months of 2019, as reports from the holiday retail season suggest, we will see some evidence of this strength when the controversial home furnishings and household items giant, Bed Bath & Beyond (NASDAQ 🙂 reports his fiscal profit for the third quarter on Wednesday, January 8 after the close of the market.
BBBY Weekly TTM
Analyst consensus estimates that retailers will generate $ 2.85 billion in revenue, while making $ 0.02 earnings per share. The retailer is in the middle of a failure to renew its business model to survive the attack of e-commerce giants.
The company announced last month that half a dozen top managers are leaving the chain, including the heads of merchandising, marketing, digital and legal. Earlier this year, Bed Bath & Beyond replaced various directors, including co-founders of the chain, under pressure from activist investors. It has also conducted a strategic evaluation of its portfolio of around 1500 stores.
Encouraged by these efforts, investors have increased BBBY shares by more than 50% over the past three months. They closed on Friday at $ 16.08 after a fall of 1.5%.
3. Constellation Brands
Also on Wednesday, the US-based producer of Corona beer Constellation Brands (NYSE 🙂 will be under investor control when it reports earnings for the third quarter of the 2020 fiscal year before the opening bell. The Victor, N.Y. -based maker of beer, wine, and spirits is expected to show $ 1.9 billion in revenue and $ 1.84 earnings per share.
STZ Weekly TTM
In recent quarters, they have been pressured by the company's $ 4 billion stake in marijuana producer Canopy Growth (NYSE :). The Canadian cannabis company is struggling to show profitability, a challenge for other pot producers in the sector.
In the previous quarter, Constellation reported a loss of $ 525.2 million in the second quarter, which was offset by paper losses in the Canopy Growth investment. The stake in Canopy shrank by around $ 1.3 billion in value in the second quarter, including a $ 839 million drop in Canopy stock price.
"Canopy's business activities are evolving rapidly and the financial results are likely to be volatile," Constellation Finance Director David Klein told analysts in October. The company's share price has fallen by more than 5% in the last six months. It was 0.6% higher on Friday to close at $ 189.53.
