Hot stocks to watch, Aug.11 – 15: August on Wall Street has often been likened to watching paint dry. Trading volumes shrivel as U.S. market participants head to the beach, Europe rewards itself with a four-week vacation, and few major corporate events are scheduled.
But the market isn't the dead zone that some think…
8 Hot Stocks to Watch for the Week of Aug. 11
Hot Stocks to Watch No. 1: Cisco Systems Inc. (Nasdaa: CSCO) reports fiscal Q4 numbers after the closing bell on Wednesday. Wall Street is looking for the IT giant to post earnings per share (EPS) of $0.53 on revenue of $11.807 billon. Whisper numbers are for $0.55. The company reported better-than-expected numbers in the previous quarter and shares jumped 7%. A number of analysts upgraded the stock following the solid Q3 report, further helping shares in the ensuing days. A common item noted by the firms commenting on Q3 was the sequential growth in both the Americas and Europe. Additionally, bulls were pleased with Cisco's improving product orders and better-than-expected product and gross margins. The general opinion remains bullish, with a number of firms giving Cisco a "Buy" rating. CSCO shares are up 11% year to date.
Hot Stocks to Watch No. 2: J. C. Penney Co. Inc. (NYSE: JCP) reports Q2 earnings after the close on Thursday. Consensus estimates are for a per-share loss of $0.99. Whisper numbers have the per-share loss a bit lighter at $0.89. The company was all but left for dead last year. But Q1 numbers showed the company's turnaround strategy is working. Shares shot up 25% after the first quarter report showed net sales of $2.80 billion compared to $2.64 billion in Q1 2013. Same-store sales increased 6.2% in Q1 and improved sequentially each month within the quarter. After a strong showing earlier in the year, JCP shares are up just 0.66% for the year.