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BenzingaEditorial

The Dow Jones Index – The Story of COVID-19 Winners

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Stock Market Tumble

Despite not including electrifying stocks such as Amazon (NASDAQ: AMZN) and therefore missing out on its historical gains, The Dow Jones index still has quite a few winners under its umbrella. Although Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) had their worst performing days since March yesterday, the drop was followed by their peers Facebook (NASDAQ: FB), Alphabet (NASDAQ: GOOG) and Amazon. One bad day cannot erase the massive rally of these tech stocks which literally bloomed throughout the pandemic, or more precisely, the first two quarters of the year.

Apple shares rose nearly 70% to date with the market value surpassing $2 trillion market cap. Moreover, Apple is no longer dependent on its ‘sacred cash cow’, iPhone, as it showed it is successfully reshaping its business model to services. But even the iPhone is doing well, as  Omdia’s research showed that iPhone 11 was the most popular smartphone during the first half of 2020.

Microsoft latest revenue of $38 billion exceeded expectations of $35.5 billion. Earnings per share of $1.46 exceeded the estimate of $1.36. If we look at Intelligent Cloud alone, revenue amounted to $13.4 billion. The story of Microsoft’s rebirth is greatly owed to its Intelligent Cloud business. During the fourth quarter, Intelligent Cloud brough in a revenue of $13.4 billion. This a 17% increase compared to the same quarter last year. If the pandemic has showed us anything is that tech is crucial for business resilience and faster recovery. Coca Cola Company (NYSE: KO) and Walgreens Boots (NASDAQ: WBA) also turned to Microsoft for its simplicity and seamless integration.

Microsoft’s gaming business also saw skyrocketing growth of 64%, amounting to 1.3 billion, as Xbox hardware revenue jumped 49%. The Xbox Series X is also coming in November. Microsoft has over a billion enterprise users and it can be found in nearly every enterprise of the planet. From early March to the end of April, Microsoft Teams grew from 11 million to over 75 million users. Users want systems that can work together without complexity and Microsoft delivered on that promise.

Although Astrazeneca (NYSE: AZN) is the leader in the vaccine race, Johnson and Johnson (NYSE: JNJ) has ample financial resources along with an array of brands to boost its chances. Yesterday, Reuters reported that Johnson & Johnson announced its coronavirus vaccine prevented hamsters from getting severely ill. Although we need to wait for human trails to begin next month, this is something to be excited about. Its pharmaceutical segment still stood strong amid the devastating second quarter. Despite falling earnings, the company continued to pay dividends. Johnson and Johnson is a Dividend Aristocrat, a company that not only continuously pay dividends, but also keeps increasing them. The bottom line is that it is diversified enough to survive the storm while also expecting to expand earnings for fiscal 2020 despite delivering losses in the second quarter.

Despite the focus on performance chemicals, Dow Chemical (NYSE: DOW) portfolio is actually quite diversified. During the second quarter, some of Dow’s sales did suffer as it was the worst quarter of the year all over the globe. But despite plummeting sales of big items such as new homes, furniture, and cars, sales of cleaning and disinfecting products, which also use Dow’s chemicals, increased. People started cooking at home, increasing the demand for food packaging. Professional construction chemical sales dropped, but do-it-yourself home improvement rose and pulled paints and coatings along. This diversified portfolio allowed Dow to outperform expectations. More importantly, it generated plenty of cash to fund its dividend.

Pharma titan Merck (NYSE: MRK) and recently expelled from the Dow, Pfizer (NYSE:PFE), appear to be two of the most evenly matched competitors in the pharmaceutical sector. But unlike Merck, Pfizer is limping besides the pandemic creating an opportunity for a vaccine. Merck also has two vaccine candidates. Chief executive Kenneth Frazier announced on Thursday that human testing is starting fairly soon. Over the last half of a decade, Merck’s stock has consistently outperformed Pfizer’s. Merck’s value grew by 6% whereas Pfizer’s dropped 3.1%.

Over the next three years, Merck will invest $19 billion into expanding its oncology, vaccine, and animal health segments. Its cancer immunotherapy is expected to continue fueling its sales as Keytruda sales were 46% year over year.

The Procter & Gamble Company (NYSE: PG) had its best fiscal year in more than a decade. Despite all of us being germ-conscious in this new pandemic era, we still have cravings such as donut and coffee. Procter & Gamble has already teamed up with Dunkin’ Brands Group, Inc. (NASDAQ: DNKN)-owned Dunkin’ Donuts to promote the use of its cleaning products in restaurants, but it is looking for more partners with fast-food, hospitality, transportation and healthcare companies. At the end of the day, it’s more than revenue- it’s free publicity. Sales gains managed to beat management’s target for the fourth consecutive quarter, and cash flow and profitability reached new highs. But most importantly, the outlook is even brighter with further market share expansion. Fiscal 2020 results are evidence that P&G can invest aggressively in growth strategies while still boosting profitability.

So, there you have it. Big Tech, medical devices, pharmaceutical and consumer goods Dow winners of the pandemic. And there’s no reason to doubt that post-COVID era will be just as kind to them as they provided meaningful service and products that actually made a difference during these unprecedented circumstances.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

This Week’s Recap

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The market and the economy continue to open, which is probably a result of bottled-up demand for many products and services affected by the pandemic. Maybe the inflation or rising bond yields will trigger the selloff on the market at some moment, but the current Fed’s transitory inflation message has been accepted by many investors. Also, the best way to deal with inflation is to stay with your investments and keep your faith in the market. So, despite the jump of May’s consumer-price index, that did not affect the investors who adopted a different mindset, so all three major averages finished in a positive zone.

The Dow Jones Industrial Average managed to recover from one of the steeper declines, thanks to gains from companies like IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The Nasdaq Composite Index has also risen 49.09 points to 14,069.42. The tech-heavy index continued with the positive run, led by DocuSign (NASDAQ: DOCU), Zoom Video (NASDAQ: ZM), and CrowdStrike (NASDAQ: CRWD).

Tuesday brought us an earnings report from Oracle

Although it was a slim week for the earnings reports, Oracle (NYSE: ORCL) announced its last quarter results, as well as plans and guidance. The results are better than expected, as the achieved revenues were $11.23 billion (compared to the expected $11.04 billion) and the achieved adjusted earnings of $1.54 per share (compared to the expected $1.31). On the other hand, the company revealed its quarterly revenue guidance, which is lower than expected due to the plans to increase investments to support its cloud strategy and keep migrating existing on-premises customers to the cloud. This all led to a share fall of 5%, as many investors are skeptical if Oracle can successfully compete with major “cloud” players like Amazon (NASDAQ: AMZN), Salesforce, or Workday (NASDAQ: WDAY).

Adobe reported impressive results on Thursday

The Wall Street analysts recognized the work-from-home trend and this second digitization era as the main reasons for Adobe’s (NASDAQ: ADBE) sustained growth and therefore a monster quarter. And they were right. The company reported revenues of $3.84 billion, which is an increase of 23% compared year to year. That is also above the Wall Street estimate of $3.73 billion. The digital media business revenues, consisting of Creative Cloud and Document Cloud, grew by 25% compared to the previous year. The adjusted earnings per share were $3.03, which is higher than the estimated $2.81. For the following quarter, the company expects revenues of $3.88 billion and adjusted earnings per share of $3.00.

Conclusion

All these factors taken together, proven by positive index movements and earnings results better than anticipated, support the fact that the economic recovery is firmly underway, and those are very encouraging news.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Several new earnings reports and more management presentations this week

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We might be witnessing the lower volume of quarterly earnings reports this week, but that only means we passed last quarter’s report peak and we are getting ready for the June-quarter earnings season, which will hit us not long after the 4th of July. However, we do not lack many management presentations, which are typical after announcing earnings reports. This week brings us news for future result expectations from more than 30 companies, so let’s try and not miss any important clues. Besides earnings reports, this week is bringing us a total of 9 new IPOs like Marqeta, Inc. (NASDAQ: MQ), TaskUs, Inc. (NASDAQ: TASK), LifeStance Health Group, Inc. (NASDAQ: LFST), monday.com Ltd. (NASDAQ: MNDY), Zeta Global Holdings Corp.(NYSE: ZETA) and Jaws Hurricane Acquisition Corp (NASDAQ: HCNEU).

Monday

Yesterday we saw the first quarter report of fiscal 2022 for Marvell Technology (NASDAQ: MRVL), a Delaware-based company that develops and produces semiconductors and related technology. Marvel Technologies reported new revenues of $832 million, which is an increase of 20% year-to-year. GAAP gross profit margin was 50.2% and non-GAAP gross margin was 64.3%, while GAAP diluted loss per share was $0.13 and non-GAAP diluted income per share was $0.29.

Also, Vail Resorts, Inc. (NYSE: MTN) which owns and operates several premier mountain resorts in Colorado and California, reported fiscal 2021 third-quarter results yesterday. The report showed a net income of $274.6 million which is an increase of 80% compared to the third fiscal quarter of 2020. The reported EBITDA was $462.2 million, which is a significant increase from last year same quarter’s $304.4 million.

Tuesday

Besides earnings reports from Navistar International (NYSE: NAV) and Calavo Growers (NASDAQ: CVGW) on Tuesday, we are also expecting reports from Thor Industries (NYSE: THO), Casey’s General Stores (NASDAQ: CASY), and ABM Industries (NYSE: ABM).

Wednesday

Wednesday is reserved for earnings reports from Brown Forman (NYSE: BF-B), United Natural Foods (NYSE: UNFI), and Restoration Hardware (NYSE: RH). RH, the California-based furnishing company is expected to report earnings of $3.99 per share, which is growth of over 214% compared to the same period last year. Also, GameStop Corp (NYSE: GME), one of the world’s largest video game retailer’s earnings report is expected on Wednesday. The expected loss for the first quarter is $0.68 per share, which is an improvement from the same period last year (-%1.61 per share). In order to accelerate its transformation, the company decided to restructure its board, so it can keep up with industry growth and company expansion in the digital arena.

Thursday

On Thursday, we expect to see reports from National Beverage (NASDAQ: FIZZ), Chewy (NYSE: CHWY), and Dave & Buster’s (NASDAQ: PLAY). Chewy, the Florida-based pet store retailer, is expected to report a quarterly revenue growth of over 125%, compared year over year.

Friday

We are not expecting any major earnings reports on Friday.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

The week may be starting slowly but do not let that mislead you

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The celebration of Memorial Day in the U.S. caused the slower start, but the rest of the week will bring us plenty of news, updates, and earnings reports from companies like Zoom Video Communications (NASDAQ: ZM), Hewlett-Packard Enterprise (NYSE: HPE), Advanced Auto Parts (NYSE: AAP) and Slack Technologies, Inc. (NYSE: WORK). This week will also bring us news from the EV and the IPO worlds, as well as the 2021 Bitcoin conference, one of the biggest cryptocurrency events this year. Before we move to the day-to-day highlights, if you are a small business owner, do not miss today’s deadline to apply for the latest round of the Paycheck Protection Program funding.

Tuesday

This week’s earnings reports will be led by Kirkland’s Inc (NASDAQ: KIRK), and that is due before the market opens. It will be followed by HP’s and Zoom’s earnings reports, after the bell. SoFi Technologies (NYSE: SOFI) is a fintech startup IPO joining the trading world after its SPAC merger on Friday.

 

Wednesday

Before the market opens on Wednesday, we are expecting the earnings reports from Advance Auto Parts and Lands’ End Inc (NASDAQ: LE). The reports will keep coming after the bell as well, so we are keen to see how NetApp Inc (NASDAQ: NTAP), Endeavor Group Holdings (NYSE: EDR), Splunk Inc (NASDAQ: SPLK), and PVH Corp (NYSE: PVH) did in the previous period. Wednesday is also the day when we are expecting the Beige Book, which will give us the latest analysis of the economic conditions in the U.S. as the COVID-19 restrictions reduce.

Thursday

Thursday is expected to be the busiest of the week, when we expect earnings reports from Express Inc (NYSE: EXPR), Asana Inc (NYSE: ASAN), Duluth Holdings Inc (NASDAQ: DLTH), Broadcom Inc (NASDAQ: AVGO), The Toro Company (NYSE: TTC), The Cooper Companies (NYSE: COO), Science Applications International Corporation (NYSE: SAIC), Lululemon Athletica (NASDAQ: LULU), as well as Slack Technologies.

Thursday is a big day for NVIDIA Corporation (NASDAQ: NVDA) also. After reporting the record profits and earnings, highly affected by the company’s revenues from graphic cards for crypto mining, the shareholders will vote on a 4-for-1 stock split. That will increase the number of authorized shares of common stock, and if approved, each shareholder will receive an additional dividend of three additional shares.

Thursday will be also interesting in the automotive world. Kia will start taking reservations for its new EV6 crossover, while Nio Inc (NYSE: NIO), the Chinese automaker, will hold a general meeting so it can increase the diversity of its board.

This day will also be dominated by cryptocurrencies, as the 2021 Bitcoin conference, taking place in Miami, will kick-off.

Friday

The week’s end is reserved for the earnings report from Hooker Furniture Corporation (NASDAQ: HOFT), and that is expected before the opening bell. During the rest of Friday, we will focus on the latest unemployment rates and data.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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