Investors should brace for another volatile trading week in the US, where big-capitalization technology stocks are losing out over concerns that their values ??have become too high, especially as the overall economy continues to struggle to overcome pandemic-induced weakness. come.
Major US benchmarks fell for the third consecutive week, covering their longest weekly losses since last year. They lost 0.7% and fell 0.6% in that period.
Investors are looking for new catalysts after the Federal Reserve indicated last week that keeping interest rates low for years is boosting the economy, especially as economic data continues to show a patchy path to recovery.
In this uncertain economic environment, here are three stocks we'll be focusing on this week:
1. Nike
Nike (NYSE 🙂 will launch on Tuesday, 22 September, after market close, announce its earnings for the first quarter of the 2021 fiscal year On average, analysts expect the sportswear giant to make earnings of $ 0.44 per share on revenue of $ 8.89 billion.
After posting a rare one in its previous report, the athletic footwear and apparel giant is likely to see some recovery as global coronavirus-related restrictions were reduced and stores reopened. The company's e-commerce sales will also be in the spotlight. They turned out to be a bright spot during the previous report as they were up more than 75% in the fourth quarter.
Despite the difficult work environment for retail giants in general, analysts are hopeful that the Air Jordan sneaker maker is well positioned for long-term growth, given its strong brand recognition and ever-improving digital capabilities.
Nike stock closed 1.46% at $ 114.66 Friday. The stock has fully recovered from the pandemic-related sell-off, up about 14% this year.
2. Oracle
Stocks of Oracle (NYSE 🙂 and Walmart (NYSE 🙂 are likely to initiate some action today after President Trump agreed to the approval of which Chinese video sharing app TikTok will partner with the two US giants to become a US-based company.
Chinese headquarters ByteDance is seeking US approval for a transaction that will give its parent company a majority stake in TikTok. Trump demanded the sale of the service in August, stating in executive orders that the popular video-sharing app poses a threat to national security.
Under the proposed deal, Oracle will have a 12.5% ??stake in the new entity called TikTok Global, while Walmart has agreed to enter into commercial agreements to provide e-commerce, fulfillment, payments and other services to the new company. to deliver. a share of 7.5%.
TikTok, a platform for creating and sharing short videos, has grown rapidly in the US from approximately 11 million monthly active users in January 2018 to approximately 100 million. Oracle shares closed at $ 59.75 on Friday, after a decline of about 1%. The stock is up more than 26% in the last six months.
3. Costco
Retail will be re-examined on Thursday when Costco Wholesale (NASDAQ 🙂 will post its fourth quarter 2020 results after the reports closure. Analysts expect a $ 2.83 share of earnings on revenues of $ 52.06 billion.
Costco, along with Walmart, was one of the main beneficiaries of pandemic-related consumer supplies, as home-bound shoppers scoop toilet paper, cereal, and other daily necessities while hiding in their place.
While that shopping spree is largely over, it is likely to show a normalized sales pattern and some impact from the increased consumer purchasing power resulting from federal cash distribution.
The Costco stock, which is up more than 14% this year, needs a robust earnings report to justify a further increase from here. It closed at $ 335.96 on Friday after a decline of about 1%.
