American stocks staged a strong recovery this week, erasing most of the losses made last week. The Dow Jones rose by almost 1% while the S&P 500 and Nasdaq 100 indices soared by over 1.8% and 2.58%, respectively.
The key catalyst for equities was the US consumer inflation numbers, which revealed that the headline Consumer inflation continued moving downwards in August. The headline CPI dropped to 2.5%, its lowest point since 2020.
A week before, data showed that the unemployment rate remained above 4% in August, meaning that the situation remained worrying.
Therefore, next week will be important for the markets as the Federal Reserve is expected to deliver its first interest rate cut in years. The stock market will also have some companies publishing their financial results.
FactSet Research Systems | FDS
FactSet Research Systems is a leading company in the financial services industry. It provides its solutions to companies like investment banks and hedge funds, meaning that it is not a mainstream firm.
It competes with companies like Bloomberg, London Stock Exchange, which owns Refinitiv, S&P Global, and Morningstar Direct. Most importantly, it is a favorite company among income investors because it has hiked dividends for 24 years, meaning that it will likely become a dividend aristocrat soon.
FactSet’s annual revenue has soared from $1.4 billion in 2019 to over $2.08 billion last year. There are signs that its growth is slowing, which explains why the stock is barely moved in the last 12 months.
FactSet will publish its result on Thursday, and analysts expect the numbers to show that its revenue rose by 2.10% to $546 million.
FedEx | FDX
FedEx, one of the biggest players in the logistics and delivery services industry, has gone through major issues in the last few years. Its revenue peaked in 2021 as global demand rose and then slowed to $90 billion in 2022 and $87 billion in the last financial year.
FedEx will also publish its financial results on Thursday next week. These results will provide more information about the company’s performance as signs of global slowdown remain. Its results are often seen as barometers of the global economy.
FedEx’s revenues are expected to come in at $22 billion, a small increase from the $21.68 billion it made in the same period in 2023. For the year, analysts expect that its revenue will rise by 2.50% to $89.86 billion.
Lennar | LEN
Lennar, one of the biggest homebuilders in the US, is closely watched by investors because it is a good indicator of the sector’s health. Its stock has soared by over 53% in the last 12 months and by over 271% in the past 5 years as home prices have continued rising.
Lennar’s revenue has been growing. It moved from over $22.2 billion in 2019 to over $34.2 billion in the last financial year. Its annual profits have risen to about $4 billion.
Analysts expect that its quarterly revenues, scheduled for Thursday, will show that its revenue rose by 8.4% to $9.16 billion. Its annual revenue is expected to come in at $35.32 billion, a 3% increase from last year. Its stock has risen after publishing strong financial results in June.
Lennar is seen as an undervalued company with a price-to-earnings ratio of 12.3, lower than the sector median of 16. However, the PE multiple is higher than the five-year average of 8.76.
General Mills | GIS
General Mills is one of the biggest food companies in the United States with a market cap of over $40 billion. The company manufactures products like cereals, snacks, baking products, frozen foods, and dairy.
General Mills stock has risen by over 12% from its lowest level in 2023. It remains about 16% below its highest point in 2023.
The company’s key challenge is that demand for its cereals products has been in a downward trend in the past few years. As a result, its revenue dropped from over $20 billion in 2022 to over $19.5 billion. Its profits have also been relatively stagnant.
Therefore, its financial results, scheduled for Wednesday, will provide more color about its business. Analysts expect the numbers to show that its revenue will be $4.9 billion and its EPS to move from $1.09 to $1.05.
VinFast | VFS
The VinFast stock price has crashed hard as concerns about its business remain. It has dropped by over 76% in the last 12 months and by 52% this year, giving it a market cap of over $9.8 billion.VinFast, a Vietnamese company, will publish its financial results on Friday.
Analysts expect its revenue for the quarter to be $460 million while its loss per share rose from 19 cents to 21 cents. There are chances that the stock will continue falling as its headwinds rise.
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