Just a handful of the benchmarks' members are still set to report earnings, along with some key small-cap players.
Tuesday's Hot Stocks to Watch: BBY, SWHC, TSL, and More
Stocks to Watch No 1: Best Buy Co. Inc. (NYSE: BBY) leads today's hot-stocks-to-watch list when it reports earnings before the open on Tuesday. The leading electronics retailer is expected to post Q2 earnings per share (EPS) of $0.31, a penny short of the $0.32 earned in the same quarter a year ago. Whisper numbers are for a much more bullish EPS of $0.38. BBY beat estimates in Q1, but shares are still struggling to recover from lows hit following a weak holiday season. Ahead of the Q2 release, Piper Jaffray reiterated its "Buy" rating on BBY. Last month, Citigroup upped their rating on shares to "Buy" and raised their price target to $36 from $31. Morgan Stanley recently set an "Overweight" rating on BBY with a $36 price target. Wedbush sees revenue at or below consensus estimates, but the firm has earnings beating estimates thanks to cost controls. Notable bullish call activity has picked up in the days prior to the Q2 report. Shares, at $31.20, are down 21.77% year to date.
Stocks to Watch No. 2: Smith and Wesson Holding Corp. (Nasdaq: SWHC) reports fiscal Q1 results after Tuesday's close. The Street expects the manufacturer of firearms to post EPS of $0.25. Whisper numbers have SWHC missing by a penny. In mid-June, SWHC reported a 4.6% net sales decrease amid lower long gun sales, which offset strong handgun sales. Yet FY2014 results were a record and included the highest sales, gross margin, and profits in the company's history. The company maintains it is well positioned to continue to "take market share and deliver profitability." Shares are down 1.63% year to date.
Stocks to Watch No. 3: Trina Solar Ltd. (NYSE ADR: TSL) reports Q2 results Tuesday morning. Expectations are for the Chinese solar giant to report EPS of $0.14. But it's forward guidance that's key. The U.S. Department of Commerce (DOC) recently imposed a larger tariff on imported solar panels amid complaints that China's sale of solar panels to the United States are illegal because the panels are priced well below their cost of production. The DOC levied a preliminary anti-dumping rate of 26.3% on Trina following its investigations. Taken together with anti-subsidy duties announced in June, Trina faces an effective rate of 29.3%. Still, demand in China and India, Trina's key markets, remains strong. The consensus analyst recommendation remains "Buy." Shares are down 2.78% year to date.
Stocks to Watch No. 4: Analog Devices Inc. (Nasdaq: ADI) reports fiscal Q3 results after Tuesday's close. Wall Street is looking for the manufacturer of systems technology used in the automobile, communications, and industrial industries to post EPS of $0.63, up nicely from $0.57 in the same quarter a year ago. Whisper numbers are for EPS of $0.64. The Norwood, Mass.-based company pleasantly surprised to the upside in the prior quarter, and management said it expected a 1% to 5% revenue increase for Q3. The consensus analyst recommendation on ADI is "Overweight," with a median price target of $57.15. At $52.34, shares are up 2.77% year to date.
Stocks to Watch No. 5: Sanderson Farms Inc. (Nasdaq: SAFM) reports Q3 results prior to today's open. Expectations are for the chicken processing company to post EPS of $3.82, up sharply from the $2.95 reported in the same quarter a year ago. Whisper EPS numbers are even higher at $4.01. The Laurel, Miss.-headquartered company reported EPS of $2.21 in the prior quarter, handily beating forecasts of $1.68 by $0.53. Earlier this month, analysts at Sidoti started coverage of SAFM at "Buy." The average analyst recommendation on SAFM is "Hold." Shares are up nearly 30% year to date.
Stocks to Watch No. 6: Bob Evan Farms Inc. (Nasdaq: BOBE) will post fiscal Q1 results after Tuesday's close. Analysts expect the "hospitable" full-service restaurant chain to report EPS of $0.10, sharply lower than the $0.58 reported in the same quarter a year earlier. Sales and unit growth struggles have slowed the company for some time. In its most recent fiscal year ended April 25, EPS slipped to $1.16, from $2.90 in 2013. However, a change in the company's board of directors could lead to a more efficient operation and more attractive stock, according to a new report from investment house Miller Tabak. Last week, the firm lifted its 12-month price target on BOBE to $56 from $55 following a recent shareholder meeting in which activist investor Sandell Asset Management gained five seats on the company's 12-member board.
Stocks to Watch No. 7: Solera Holdings Inc. (NYSE: SLH) reports Q4 numbers after Tuesday's closing bell. Forecasts are for the provider of software and services to insurance companies, collision repair facilities, independent assessors, auto dealers, and U.S. households to post EPS of $0.80, up handsomely from the $0.68 reported in the same quarter a year ago. Whisper numbers are for EPS of $0.82. The consensus analyst rating on SLH is "Hold," with a median price target of $68. At $66.14, shares are down 6.57% year to date.
Stocks to Watch No. 8: Movado Group Inc. (NYSE: MOV) is scheduled to report Q2 results before Tuesday's open. Expectations have the luxury watchmaker posting a 23% increase in EPS to $0.54. Whisper numbers are for EPS of $0.58. Revenue is seen rising 10.6% to $152.99 million, up 10% from the prior quarter. The average analyst recommendation on MOV is "Buy," with industry experts citing the company's strong brand and solid fundamentals for the bullish rating. The median price target is $53. Shares, at $44.70, have ticked up a modest 1.66% year to date.
Stocks to Watch No. 9: Regis Corp. (NYSE: RGS) reports fiscal Q4 results before today's opening bell. Analysts are looking for the hair care salon franchiser to post EPS of $0.04, down from $0.06 in the same quarter a year ago. In the prior quarter, RGS came in with a negative earnings surprise of 150%, blamed on weak same-store sales and an increase in depreciation expenses. RGS has been hurt by the uneven U.S. economic recovery and consumers that remain tight-fisted. Still, shares have managed to eke out a 1.45% year to date gain.
Stocks to Watch No. 10: Tech Data Corp. (Nasdaq: TECD) is on tap to post EPS of $0.77, up from $0.73 a year ago, when the wholesale distributor of technology products reports Q2 numbers before today's open. Whisper numbers are for EP of $0.81. Shares, which hit a 52-week high of $66.62 Monday, are up 28.88% year to date.
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