It will be another week where it will be difficult to predict which direction the markets will go. Lately, investors have focused on the bond market, where yields have risen in anticipation of higher inflation, prompting investors to switch from high-growth stocks to value and cyclical names.
That shift cost investors dear as the capped a third consecutive week of declines that abolished $ 1.6 trillion in market value over that period. Concerns about rising interest rates and their impact on stock valuations are unlikely to disappear anytime soon, especially when Americans will soon receive additional stimulus checks after the US Senate passed a $ 1.9 trillion coronavirus package on Saturday.
This was done by removing a major hurdle in implementation. The Democratic House wants to pass the bill on Tuesday and send it to President Joseph Biden for signature before a March 14 deadline, which will require renewal of unemployment assistance programs.
Amid these uncertain market conditions, there are three stocks that we think are worth staying on our radar for the next week:
1. Tesla
Investors will keep a close eye on movements in Tesla (NASDAQ 🙂 stocks over the next week, after the electric carmaker is down 30% from its January high.
Tesla & # 39; s stock closed at $ 597.95 on Friday after a loss of about 4% on the day the growth stocks suffered.
That weakness comes after the electric automaker's stock boomed in 2020, pushing its stock up more than 700%. A spike in US Treasury yields and the prospect of higher inflation have weighed on the stock market and contributed to a sell-off in high-flying growth stocks.
Tesla & # 39; s recent weakness shows that it is more vulnerable to changing market sentiment than other technology giants. because of its great speculative appeal.
In addition to the escalating sell-off of technology stocks, investors are also concerned that Tesla will struggle to increase its sales volumes as competition in the EV market is intensifying and the company is pushing price cuts on several models
2. Oracle
Oracle (NYSE 🙂 will publish its earnings report for the third quarter of fiscal year 2021 on Wednesday, March 10, after market close. Analysts expect $ 1.11 per share on sales of $ 10.05 billion.
At the end of December, the software company gave a better-than-expected forecast for its quarterly revenue, as a sign of increasing demand for the technology giant's cloud computing. services after years of stagnant sales.
Sales are likely to have increased 2% -4% in the period ending February, keeping the company on track to book three consecutive quarters after two fiscal years of declining revenues.
]
Growth prospects are improving as the company turns to cloud computing services in an effort to accelerate revenue growth at the world's second largest software manufacturer. Customer interest in the company's Internet applications has finally offset the declining demand for its legacy tools.
Oracle shares, which closed at $ 69.97 Friday, were up about 7% on the last day of trading last week. of better than expected earnings. The stock is up 26% in the past six months.
3. JD.COM
Chinese e-commerce giant JD.Com (NASDAQ 🙂 will make its profits on fourth quarter reporting. Analysts predict earnings per share of $ 0.19 on revenues of $ 33.9 billion.
The Internet merchant's revenues will be released as the company plans to incorporate its shipping company JD Logistics in Hong Kong, raising potentially billions of dollars. to capitalize on China's post-COVID e-commerce boom, Bloomberg reported last month.
The IPO could bring in about $ 5 billion and the unit's value at about $ 40 billion, the report said. Shares of JD listed on NASDAQ are down more than 16% from their February high, closing at $ 90.62 on Friday.
