After stock markets posted strong gains in 2021, investors will start the new year optimistically. The current story expects growth momentum in the US to remain strong enough to counter another hit of the rapidly spreading Omicron variant of the coronavirus. the beginning of the year. The course of the market in the new year is likely to depend more on solid earnings growth and a strong US economy than on the future course of the COVID pandemic, which is entering its third year. may include prospects for a faster rollback of the Federal Reserve's monetary stimulus, accelerating inflation, worker shortages, supply disruptions and valuations peaking nearly every five years.
Amid this environment of general optimism for US equities, below are three stocks to watch over the coming week as they each report their latest earnings:
1 . Bed Bath And Beyond
The American home furnishings and household goods giant, Bed Bath & Beyond (NASDAQ:) will report its fiscal results for the third quarter of 2021 on Thursday, January 6, before the opening bell. Analysts expect the retailer to produce $0.017 and share gains of $1.96 billion.
All charts powered by TradingView
Highly favored by the meme crowd, the stock remained extremely volatile in 2021 as the army of private investors hyped stocks in chat rooms like StockTwits. BBY ended the year at $14.58, down 80% from its peak early last year.
Developments that helped boost inventory include the launch of a digital marketplace that will sell third-party goods, in addition to a partnership with supermarket chain Kroger (NYSE:) that will offer some BBY products starting this year .
However, the ongoing challenge for Bed Bath & Beyond is to move forward at a healthier pace as the onslaught on e-commerce forces many brick-and-mortar retailers to shut down.
2. Walgreen Boots Alliance
Walgreens Boots Alliance (NASDAQ:), the second largest pharmacy operator in the US, will report fiscal year 2022, its first quarter results on Thursday before the market also opens . Analysts expect earnings per share of $1.35 per share for the quarter on revenue of $32.46 billion.
The Deerfield, Illinois-based company indicated over the summer that it would slow down and increase investment in the coming months, as the COVID-19-related boost to sales was likely over.
But the recent increase in infections caused by the Omicron variant may change that outlook, as US health authorities strongly recommend a third booster shot and more people flock to pharmacies to get tested.
The company has benefited from the pandemic as it delivers millions of vaccines to Americans who tend to spend on other things when they visit pharmacies. Walgreens shares ended last year at $52.16, after gaining more than 30% in 2021.
3. Constellation Brands
US-based Corona beer producer, Constellation Brands (NYSE:), will report its third quarter 2022 results before the market also opens on Thursday, January 6. Analysts predict earnings per share of $2.21 on revenue of $2.28 billion.
As the Victor, New York-based wine, beer and spirits producer manages to manage the difficult business environment during the pandemic by offsetting the decline in sales on-site, in restaurants and bars with off-site sales in his beer business has escalated.
CEO Bill Newlands told investors in October that the momentum of the company's major imported beer brands is helping it gain market share in the higher end of the US beer market. He added:
"Most of our growth continues to be driven by Modelo Especial, supported by strong consumer demand for Corona Extra and Pacifico, and we expect this to continue for the foreseeable future."
STZ shares closed on Friday, the last trading day of 2021, at $250.97, after a 14% gain last year.
