Stocks on Wall Street soared last week, marking the best week of 2024 as positive U.S. economic data eased recession fears. The benchmark index rose by 3.9%, the tech-heavy Nasdaq gained 5.2%, and the blue-chip Dow added 2.9%.
This week, all eyes are on the Fed’s annual Economic Policy Symposium in Jackson Hole, Wyoming, with Fed Chair Jerome Powell set to speak on Friday. Investors are anticipating potential interest rate cuts in September, with a 75% chance of a 25 basis point cut.
On the earnings front, retailers like Target, TJX Companies, Lowe’s, and Macy’s, as well as tech companies like Palo Alto Networks, Snowflake, Workday, and Baidu, are reporting this week.
Stock to Buy: Palo Alto Networks
Palo Alto Networks is expected to have a strong week with positive earnings and outlook. Analysts predict a 2% decline in profit but an 8% increase in revenue, driven by high demand for cloud-based security services. The company has seen upward revisions in EPS estimates and is likely to provide a positive outlook for the future.
PANW stock closed at $334.11 on Friday, with a market cap of $108.2 billion. InvestingPro rates it highly for financial health and growth potential.
Stock to Sell: Lowe’s
Lowe’s, on the other hand, faces challenges with weakening consumer demand and declining earnings and sales. Analysts expect a 12.3% decline in EPS and a 4.2% drop in revenue for the July quarter. The company’s reliance on DIY customers makes it vulnerable to shifts in consumer behavior.
LOW stock closed at $241.15 on Friday, with a market cap of $137.4 billion.
Overall, investors should pay attention to the Fed’s upcoming meeting, earnings reports, and individual stock performances to make informed decisions for the week ahead.
Lowe’s Stock Drops 8% Since March Peak – Should You Invest Now?
Shares of Lowe’s have been on a decline, dropping nearly 8% since reaching a peak of $262.49 in March 2024. According to InvestingPro, concerns over declining profit and sales growth prospects are painting a negative picture for Lowe’s stock.
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Disclosure: The author of this article is currently long on the S&P 500, as well as the SPDR® S&P 500 ETF and the Invesco QQQ Trust ETF. Additionally, they are long on the Technology Select Sector SPDR ETF (NYSE:). The author regularly rebalances their portfolio based on ongoing risk assessments of the macroeconomic environment and companies’ financials. Please note that the views expressed in this article are solely the opinion of the author and should not be considered as investment advice.
For more stock market analysis and insights, follow Jesse Cohen on Twitter @JesseCohenInv.