Welcome to MacroHint’s new weekly newsletter!
In the weekly newsletter we talk about what lies ahead for the market in the coming week. From major Fed meetings to key earnings calls, MacroHint has you covered.
Let’s take a look at the week ahead!
Regarding the Fed, there aren’t any major planned meetings this week, just some mundane meetings involving daily interest rates.
Earnings makes this week a little more exciting!
Here are some companies that have their quarterly earnings announced this week!
Zoom
Zoom has their earnings call after market close on Monday.
If this isn’t a quintessential COVID stock, I don’t know what is. Zoom has obviously performed quite well over the last year and a half and will likely continue to thrive, just not as much as it did before.
If I had to guess, I would say the video communications company is going to steamroll earnings. It hasn’t been terribly hard for companies to beat earnings (because COVID set the bar very low). Even if Zoom performed on par or has mediocre results compared with The Street, the stock can still potentially go up a few percentage points after earnings.
It is also worth mentioning that if the delta variant continues to pose a threat, Zoom will be waiting to be used by millions sitting behind their computer in their pajamas during a business meeting.
Cloudera
Cloudera is posting their earnings after market close on Monday as well.
To be frank, I had no idea what Cloudera did until I looked it up. What do they do? Cloud stuff. That’s right!
In more formal terms, Cloudera’s main business is using machine learning to discover insights of data through a safe and secure connection.
Cybersecurity has been huge in the news lately (thanks, T-Mobile) and while Cloudera is not a cybersecurity company, they have still been entrusted with keeping others data safe and private.
Especially with the rise in “learning” and using online applications and the necessity of companies and businesses sifting through data to find patterns and discoveries that can give their business an edge, Cloudera is likely going to beat their earnings.
They might even simply perform as expected by Wall Street analysts. Either way, this tech company seems to have a solid foundation whether or not they beat their coming earnings.
Fun Fact: Legendary activist investor Carl Icahn is their largest external shareholder!
Campbell Soup
Things aren’t expected to be very rosy for American consumer staple Campbell Soup in regards to their upcoming earnings session on Wednesday.
Campbell Soup stock was downgraded a little over a week ago by an analyst at Jefferies (prominent ratings agency). The stock has also been absolutely flat for years (that’s besides the point).
Analysts are expecting Campbell to report lower revenues
Are analysts always right? Absolutely not. However, they have done a lot of research on the company so people tend to trust and ultimately agree with their outlook (instead of doing their own due diligence).
However, given the decline in margins in the grocery and food industry combined with a quick glance at what analysts predict, I would assume Campbell is going to miss their earnings and have an unhappy Wednesday evening!
Five Below
Five Below is also having their earnings call on Wednesday after market close.
I predict an upside movement in the stock. Frankly, it hasn’t been tremendously difficult for major retailers to impress on earnings in this environment. If your stores are open after these previous rough quarters, then you are making some revenue and therefore your stock price will go up. When the company outlook is better than it was during peak-COVID, your stock will go up (no matter the actual quality of the company). Again, the bar is set very low.
Retail CEO’s have it easy right now.
Conclusion
These are a few of the main companies that have their earnings calls this week! A few other big names have earnings this week, however, for the sake of brevity I will not be discussing them.
Hopefully the Fed will have something interesting for us to write about next week!
Thank you for checking out our newsletter!
Staying in the Hint and staying ahead of the market just got a whole lot easier.