Though the trading week will be shortened ahead of this Thursday's Thanksgiving holiday, there are still plenty of things for investors to note. Wall Street continues to pin hopes on a breakthrough in U.S.-China trade negotiations after the U.S. President, Donald Trump, said on Friday that a trade agreement with China was near.
Chinese President Xi Jinping, however, didn’t provide a similar, strong signal. Instead he said, Beijing also wants to land a deal but would “fight back” if necessary. So, while the uncertainty on trade continues, keeping investors on the edge, there will still be some new information worth assimilating from a number of important companies, each scheduled to report quarterly earnings. In particular, we're watching these three stocks:
1. Dell Technologies
Dell Technologies (NYSE:DELL) will release its fiscal Q3 2019 results on Tuesday, Nov. 26 after the market close. Analysts expect $1.74 EPS on more than $23.8 billion in revenue.
During its forecast for fiscal 2020, the manufacturer of IT products and services provider, had warned that sales growth will slow over the next year, hurt by the global economic issues that may weaken corporate demand for the company’s hardware products.
During the past year, Dell consistently generated strong hardware sales, as the company prepared to transition back to the public markets after five years of restructuring aimed at cutting back debt and simplifying a tangled corporate structure. Investors liked the restructured Dell, sending its shares higher by 50% until late May of 2019.
But the stock has fallen about 24% since then, after the company predicted there would be weaker spending on technology. Dell executives said during a call in August that they expected IT spending to be “soft” throughout the rest of the fiscal year, particularly in China.
The company also narrowed its annual revenue projection to $92.7 billion to $94.2 billion, from the February forecast of $93 billion to $96 billion.
2. Best Buy
Best Buy (NYSE:BBY) is another high profile name that will come under investor scrutiny this coming week. The big box electronics and technology chain reports Q3 earnings on Tuesday, Nov. 26 before the market opens. The retailer is expected to produce $9.7 billion in revenue and $1.03 of profit per share, according to analysts’ consensus.
Shares have rallied strongly this year, surging more than 35%, as Best Buy continues to benefit from its expanding services business and the increasing assortment of inventory it stocks, such as smart-home devices, door locks and cameras, along with appliances, video games and wearable devices. Shares closed at $72.64 on Friday.
That growth momentum may continue as Apple (NASDAQ:AAPL), the company’s largest supplier, is predicting strong demand for its new iPhone models, while U.S. consumer spending during the key holiday period doesn’t show any sign of slowing down.
The company’s new CEO, Corie Barry, said in September that he sees revenue and profitability improving in the next five years as the retailer offers new services, expands its e-commerce arm and moves into new areas such as health care.
3. Deere & Company (NYSE:DE)
Deere & Company (NYSE:DE), the world’s largest tractor manufacturer, will release its Q3 earnings on Wednesday, Nov. 27, before the market opens. Wall Street is expecting sales to come in at $8.5 billion and $2.14 of earnings per share.
In August, Deere pledged to lower its costs as it tried to overcome the negative impact of a trade war. The company also provided a cut in its forecast for Q4 2019 and fiscal 2020 that was lower than what investors had expected, citing the slowing global economy.
With production costs in some segments rising, the Moline, Illinois-based company has initiated a series of actions to make the organization more structurally efficient and profitable. For fiscal 2019, equipment sales are now projected to rise about 4%, with net income forecast at $3.2 billion, according to Deere’s latest forecast, down from the 5% it had earlier projected.
Despite the uncertain environment in which the company operates, its stock gained about 18% this year, closing on Friday at $175.38.