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This week brings a number of reports from all sectors. Initial earnings reports have so far impressed, with 70% of companies trumping forecasts, according to FactSet. Still, worries have mounted that some firms yet to report will say weakening foreign markets and a stronger U.S. dollar held down sales and could weigh on future performance.
Today's hot stocks to watch include a handful of key names in the financial sector, a top Internet player, a luxury resort giant, a streaming video titan, and more.
10 Hot Stocks to Watch Today
Hot Stocks to Watch No. 1: Netflix Inc. (Nasdaq: NFLX) kicks off Wednesday's stocks-to-watch list when the company reports Q3 earnings after the close. Analysts expect the streaming video giant to post earnings per share (EPS) of $0.93. Whisper numbers are for EPS of $0.98. Revenue is seen coming in at $1.409 billion. BMO Capital Markets is optimistic heading into the release. BMO expects NFLX to post strong subscriber net adds driven by the expansion of the company in six European countries. According to BMO analysts, the streaming company "will continue to manage rising content costs to contribution margins and leverage domestic profits" to boost international presence. NFLX's operating income is expected to increase 85% from $104 million in the same quarter last year. BMO maintains a "Market Perform" rating on NFLX. Shares are up 20.64% year to date.
Hot Stocks to Watch No. 2: Bank of America Corp. (NYSE: BAC) reports Q3 numbers before the open. Analysts expect the second-largest U.S. bank to post an EPS loss of $0.09, down from $0.20 in the year-ago quarter. The loss includes an expected $0.43 charge related to the bank's $16 billion mortgage settlement with the government in August. Revenue is also expected to come in lighter year over year (YOY). Estimates are for revenue of $21.34 billion, down from $21.53 billion a year ago. Investors will be listening for reassurance BofA's legal woes are behind it. Also of interest will be management's comments on use of capital. A share repurchase and dividend hike would be welcome news and could goose shares.