With stocks on track to close their best August in more than three decades, bulls appear to be in complete control of the market.
After rising 7.2% in August, it will finish its best month since 1984 if it maintains that level through Monday. Since the index topped its pre-COVID high last week, the index has hit records more than half a dozen times.
Some analysts now see evidence to justify further gains, citing everything from the Federal Reserve's new policy goals to cheap money on the sidelines, ready to be deployed as the economy recovers and the pandemic nears its full cycle. is approaching.
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That rally is largely led by heavyweight technology stocks, but as the economy recovers, other sectors are also participating in this recovery. Amid this optimism, here are three largecap stocks that we will be watching next week.
1. Tesla
Between analyst upgrades and the massive stock rallies, Tesla's stock (NASDAQ 🙂 will start on Monday, after the 5th -for-1 stock split, traded on a split-adjusted basis. Tesla announced the move to make the stock cheaper for individual investors in August, after the company had become the world's most valuable automaker.
After the move, the Palo Alto, California-based electric car maker's stock was boosted by an additional 55%. The stocks, which are up 429% this year and hit above $ 2,213.40 Friday, have crushed the bears and made it impossible for analysts to catch up when it comes to setting price targets.
Jefferies, last week, more than doubled its stock target to a Street high of $ 2,500 from $ 1,200, saying it is "still early in the transformation of the auto industry."
In a CNBC-borne note entitled "The Permanent Revolution Continues," analyst Philippe Houchois said that while Tesla & # 39; s dominance in the auto industry may be starting to wane due to increasing competition, its presence in areas such as software and battery capacity will continue. to give it an advantage over rivals.
2. Macy & # 39; s
Troubled department store chain Macy & # 39; s (NYSE 🙂 will enter pre-market hours on Wednesday, September 2. report second quarter earnings. Analysts agree that a loss of $ 1.8 per share will have revenues of $ 3.46 billion.
It has been a difficult year for the New York City-based retailer. It struggles to survive after the pandemic, forced store closings and massive layoffs. The department store chain said sales were down 45% in May from a year earlier in the quarter ending May 2. Reopened stores in May saw sales about half the level of May last year.
In early June, the company managed to secure some financing by raising $ 4.5 billion in credit facilities, most of which was backed by real estate in major cities.
Macy & # 39; s struggled even before the virus hit, as a turnaround plan by its CEO Jeffrey Gennette failed. Investors will be happy to know if the company has a financial buffer to survive a potentially long and painful recession.
Macy & # 39; s stock, which closed at $ 6.95 Friday, is down about 59% this year
3. Broadcom
The latest big chipmaker releasing revenue this season is Broadcom (NASDAQ :). The company will report its fiscal results for the third quarter after the market closed on Thursday, Sept. 3. Analysts expect an equity gain of $ 5.24 on expected revenues of $ 5.76 billion.
Broadcom shares have rebounded strongly after the March slump, on strong signs that chip demand will not decline due to the virus-induced slowdown. The stock closed at $ 344.82 on Friday, after an increase of about 2%.
In the latest earnings report, investors will want to know if the company's current strategy, led by CEO Hock Tan – growing through acquisitions and buying hard-hitting software assets – is paying off.
Last year, Broadcom acquired Symantec's corporate security division (NASDAQ 🙂 for $ 10 billion, which produces software to keep hackers out of corporate systems. In 2018, the company closed a $ 19 billion acquisition of CA Technologies.
Following these deals, more than 80% of Broadcom's revenue will now come from segments considered stable and sustainable, such as cloud, network, software and storage companies.
