Investors should brace themselves for another volatile trading week in the US, where large-capitalization technology stocks have suffered losses over concerns that their value may have become too high, especially when bond yields rise, fueling inflationary fears.
] The yield on the US Treasury, a major measure of consumer loan interest rates, rose above 1.6% for the first time in about a year on Thursday. All three major stock averages posted weekly losses over concerns that higher interest rates and inflation will reduce the appeal of stocks.
The 2.5% drop this week for the second negative week in a row. The 30 stocks fell 1.8% while it was the biggest loser, down 4.9% for the week. In this uncertain economic environment, here are three stocks we'll be watching this week:
1. Zoom Video
Zoom Video Communications (NASDAQ 🙂 will to report fourth-quarter earnings for fiscal year 2021 after the market closed on Monday, March 1. Analysts expect $ 0.81 per share on sales of $ 910 million.
The leader of the video communications platform had a great year during the pandemic when home living and telecommuting requirements pushed up sales significantly. Revenue and profit consistently outpaced estimates, and the company continued to raise expectations.
In November, Zoom said it had 433,700 customers with more than 10 employees at the end of that quarter; of those companies, 1,289 contribute more than $ 100,000 to 12-month revenues. Investors will be eager to know if the San Jose, California-based company has been able to keep up with this strong momentum in 2021.
Zoom's stock is up 241% at Friday's close. past 12 months. The stock is down more than 30% from its all-time high of $ 588 reached in October as the sell-off of growth stocks has accelerated.
2. Target
Big-box retailer, Target (NYSE :), will report fourth quarter earnings on Tuesday, March 2, before market opens . On average, analysts expect $ 27.4 billion in revenue and $ 2.54 earnings per share.
Target's comparable sales in the third quarter, including e-commerce, were up 20.7% from a year earlier, almost doubled analyst expectations, indicating that the retailer was not only clearing new customers to acquire, but also held.
Chief Executive Officer Brian Cornell told analysts that Target is gaining market share as more customers use the company's website and in-store collection options. The Minneapolis-based retailer is seeing growth in such categories as electronics, home accessories, apparel, and food and drink.
Target stocks are up about 4% this year, after up about 80% in 2020. The stock closed at $ 183.44 on Friday.
3. Costco Wholesale
Retail will be re-examined on Thursday, March 4, when Costco (NASDAQ 🙂 will report its second quarter results of the financial year 2021 after the close. Analysts expect a $ 2.44 share of profit on the sale of $ 43.72 billion.
Costco, along with Target, has been one of the main beneficiaries of pandemic-related consumer supplies as home-bound customers continue to collect toilet paper and cereal. and other daily essentials while hiding in place.
While that shopping spree may soon be over as the introduction of the vaccine reduces the risk of infection, the latest management comment will likely see a normalized sales pattern and some impact of increased consumer purchasing power as a result of the distribution of the federal cash relief package.
These factors might provide some explanation as to why Costco & # 39; s stocks are down more than 12% this year after a vigorous rally in 2020. Shares closed at $ 331 on Friday, after falling nearly 1% for a day.
