As the stock market ended a volatile week on a positive note, investors are turning their attention to key economic data and earnings reports set to be released this week. With a focus on CPI inflation, retail sales, and earnings reports from major retailers, the market is gearing up for another eventful week.
Walmart (NYSE: WMT) is positioned as a strong buy this week, with expectations of strong earnings and positive guidance. The discount retailer is expected to deliver solid growth and outlook thanks to consumer demand trends favoring low prices.
On the other hand, Deere (NYSE: DE) is expected to be a sell this week, with disappointing profit growth and outlook on the horizon. The farm equipment maker’s earnings report is anticipated to underwhelm investors due to weakening industry demand trends.
Analysis:
With the focus on key economic data and earnings reports this week, investors should pay close attention to how the market reacts to the CPI inflation report, retail sales figures, and earnings updates from major retailers. Walmart’s strong performance and positive outlook could drive the stock to new highs, while Deere’s disappointing results could lead to a downward trend.
For investors, it is crucial to stay informed and make informed decisions based on the latest market trends and company performance. By keeping a close eye on key indicators and earnings reports, investors can position themselves for success in a volatile market environment.
InvestingPro Survey: DE Stock Plunges 4% After Earnings Report, Analysts Lower EPS Estimates
Deere, a key player in agricultural markets, is facing mounting pessimism as all 13 analysts have lowered their EPS estimates in the last 90 days. The company is expected to earn $5.85 per share, a significant drop from $10.20 in the previous year. Revenue is forecasted to decline by 31.6% to $10.8 billion, reflecting weak demand for agricultural, mining, and construction equipment.
With a fourth consecutive quarter of declining sales on the horizon, Deere’s management is likely to deliver disappointing guidance due to the challenging market conditions. DE stock closed at $346.03, near its lowest level since 2022, with a market cap of $95.3 billion.
InvestingPro highlights concerns about Deere’s stock performance, citing profit and sales growth worries. The company is also grappling with rising input costs and supply chain disruptions that could impact margins. Stay informed with InvestingPro to make informed trading decisions.
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Disclaimer: The author holds investments in the S&P 500, SPDR S&P 500 ETF, Invesco QQQ Trust ETF, and Technology Select Sector SPDR ETF. The opinions expressed are solely those of the author and not investment advice. Follow Jesse Cohen on Twitter @JesseCohenInv for more market insights.