Stock markets in the US are likely to start the new week on a positive note amid a drop in new COVID infections, increasing the likelihood of a strong recovery in the second quarter and hopes for a fresh stimulus package.
These positive developments last week spurred some of the largest stocks, stocks in sectors whose fate is closely linked to the economic reopening, such as energy and financial services. The optimism also prompted some banks to improve their economic outlook.
Goldman Sachs raised its first quarter growth forecast to 6%, while Morgan Stanley upped its reading to 7.5% after seeing strong gains for January.
So while investors keep their focus on these macro indicators, here are three stocks that could see some price action when they release their latest earnings reports:
1. NVIDIA Corporation
Semiconductor giant NVIDIA Corporation (NASDAQ 🙂 is scheduled to report fourth-quarter earnings on Wednesday, February 24 after market close. Analysts predict earnings per share for the company of $ 2.8 on revenues of $ 4.82 billion.
NVIDIA's stock has had a tremendous run over the past 12 months, fueled by the rising demand for chips used in data centers and game consoles. The stock closed at $ 597.06 on Friday, up 14% in 2021 and 88% last year.
The Santa Clara, California-based chipmaker is the largest manufacturer of graphics chips used in PC gaming. In recent years, NVDA has successfully adapted its technology for the artificial intelligence market, creating a multi-billion dollar new industry.
However, in this earnings report, investors are keen to know how the company is ramping up production to accommodate the shortage of chips across the industry. Many chip customers are struggling to meet the rising demand for everything, including laptops, game consoles and other gadgets that use chips.
2. Salesforce.com
Salesforce.com (NYSE :), which sells enterprise software and cloud-based customer relationship management services to corporate customers, reports its quarterly results on Thursday, February 25 . after closing of the market. The software vendor is expected to report $ 5.67 billion in revenues and $ 0.7541 in earnings per share.
In the past quarter, Salesforce stock has fallen about 7%, underperforming the general market. It closed at $ 246.56 on Friday.
The following report will detail the period when San Francisco-based Salesforce announced the $ 27.7 billion acquisition of Slack Technologies (NYSE :), making the company a popular workplace. communication platform in one of the largest technology deals of the past year.
Salesforce told investors in December that it expects revenues to grow by about 17% in the period just ended. For the software maker, that will be the annual revenue growth in 11 years.
3. Best Buy
The big-box electronics and technology chain Best Buy (NYSE 🙂 will also release revenues on Thursday, February 25, before the market opens. release on the fourth quarter. By analyst consensus, the retailer is expected to report $ 3.45 earnings per share and $ 17.12 billion in revenue.
Stocks are up about 30% in the past year as Best Buy continues to benefit from Americans saving on household upgrades during the ongoing work-from-home environment. The stock closed at $ 118 Friday.
Comparable sales, that is, from websites or stores operating for at least 12 months, increased 23% in the quarter ended Oct. 31. Much of the profit came from online orders, which nearly tripled in the US in the last quarter.
To keep that momentum going, Best Buy must demonstrate that its e-commerce channels can make up for physical losses as infections grew. , forcing many states to enforce lockdowns.
