With most of the earnings reports out of the way, investors will now likely turn their attention to a possible Congressional deal on a new stimulus package.
Analysts expect a larger spending package to spur economic growth, as well as help stocks continue their upward journey. These expectations and better-than-expected earnings this month from some of the largest US companies pushed stocks to new all-time highs over the past week.
The price rose 1% during the week to close at 3,458.40 and rising 1.23% to 3,934.83. The tech-heavy also rose, climbing 1.7% higher, finishing at 14,095.47.
Below is our shortlist of three stocks that could see some trading action during this short holiday week, based on company-specific developments:
1. Walmart
America & # 39; s largest retailer, Walmart (NYSE :), will report its fiscal profit for the fourth quarter of 2021 on Thursday, February 18, before the market opens. Consensus expects earnings per share of $ 1.51 on revenues of $ 148.26 billion.
Walmart has been a net beneficiary during the pandemic as people who stayed at home stockpiled groceries and consumed more daily staples. In the third quarter, the Bentonville, Arkansas-based retailer posted profits that, with surging same-store sales, saw a surge in online sales and even an increase in the company's profit margin despite pandemic-related costs.
With the giant retailer expected to report strong quarterly earnings and growing online sales again, investors have gained WMT shares 24% over the past year. The stock closed at $ 144.47 on Friday.
The government incentive package is important to the retailer, as consumers who have that money in their wallets can continue to buy from Walmart's high-margin generic merchandise categories.
2. Shopify
Canadian e-commerce platform provider Shopify (NYSE 🙂 will announce its revenue for the third quarter of fiscal year 2021 on Wednesday, February 17, before markets open. Analysts expect earnings per share of $ 1.26 on sales of $ 913 million.
The Ottawa-based company, which makes tools that enable primarily small businesses to trade across multiple channels, has gained 175% in the last 12 months, becoming the most highly regarded company in Canada with a market cap of $ 117.21. B. The stock closed at $ 1,455.49 on Friday.
One of Shopify's strengths is that it provides small and medium-sized businesses with a very effective and cost-efficient way to build a secure online store at a time when e-commerce is booming. The platform handles all aspects of hardware security, data backup and payment processing of the business, allowing merchants to focus purely on their core business.
Still, analysts expect both last year's earnings and revenue growth.
3. Tilray
The Reddit-fueled buying frenzy in speculative stocks does not seem to have diminished. Last week, the & # 39; Reddit rebels & # 39; switched to pot stocks, causing Tilray (NASDAQ :), one of the largest cannabis producers, to suddenly move up and then down again.
Shares ended the week at more than 3%, following a huge jump after Reddit-inspired retailers turned their attention to marijuana producers.
According to S3 Partners data, approximately 23% of Tilray's marketable shares are sold short. This made it a suitable short squeeze target for Reddit users after the GameStop (NYSE 🙂 mania.
Tilray was up 51% Wednesday at its highest level since March 2019. But it was down 49.7% Thursday, while Aphria (NASDAQ :), another major producer, lost nearly 36% over the course of the week.
Tilray trading gained popularity on the social media channel as it is one of the few cannabis trades readily available to Robinhood or day traders in the US Next week could see more volatile moves in the industry where speculative interest is free remains high.
