US market saw stock price corrections during the last week majorly due to the global cues like the rising tensions tightening US-China trade war, a No-Deal Brexit, European economic slowdown with a cut down in the economy’s outlook, etc. USD currency surge and crude price plunge added oil to the fire. Profit gained during the early days of 2019 seemed to be eaten up in the last week as the international issues change scales.
When viewed from a different angle, this situation looms as a golden opportunity for investors looking for an investment in the stock market this week as the prices seemed to be beaten and around 23% of the S&P500 companies yet to announce their Earnings, making them very lucrative. It needs to be highlighted that almost all the reported earnings until this week were above the consensus level. It seems that from the corporate front, things are good while global cues resurface as the dark clouds.
When glanced into the broader picture, it has to be noticed that the market had witnessed a similar gain to January’s in October 2015. Though it had to be adjusted with some corrections during the rally, the post-year market went up by 13% and a whopping 31% in the next 2 years.
In the last 50 years, January gains of 2019 are one among the other 6 years when the January gains rallied above 7% gains. So are we heading a rally in the coming trading sessions? Must probably if the International conditions seem to relax we should witness one.
So that was the picture till now, what’s next is rather more vital to consider.
- Two major events are lined up for this Tuesday are Central bank Governors. Speeches by Bank of England’s Governor Carney and another by Federal Reserve’s Chair Powell.
- Wednesday key events to pin are announcements of YoY Consumer Price Index (CPI) of UK and US both having inline consensus.
- Thursday will be heading with the release of US Retail Sales Consensus Control Group (December) and Republic of China’s YoY CPI.
- Major event expected to have huge material impact on the stock market on Friday would be the release of Michigan Consumer Sentiment Index (Feb.) over which the consensus is highly bullish and expected to surpass the previous index of 91.2.
Below are the 3 Stocks which needs special attention during this week:
Top Gamer In Town : Activision Blizzard (NASDAQ: ATVI)
Activision Blizzard is about to release its Q4 Earnings on 12 February 2019. During the Fourth Quarter, the Company has released the Call of Duty: Black Ops 4 which accumulated huge revenue surpassing it’s previous digital sales record set 2 years back. The Company also launched Candy Crush Friends Saga packed with brand new features for gamers, added more features to Hearthstone, and Spyro Reignited Triology in the fourth quarter.
ATVI share price has been showing a downtrend since October 2018 when it revealed news pertaining to losses suffered in franchises like Destiny. The recent news of ATVI regarding divestment of the brand the popular game producer, Bungie made the investment sentiment to hurt followed by an additional 13% share plunge the same day.
Investors are looking forward to the Q4 earnings of the Company curious on how the management overcomes the maintaining sustained healthy revenues. Hence the earning is expected to show a significant impact on the share price of the Company.
Aurora Cannabis (TSE: ACB): King of the Cannabis Market
Post-legalization of Marijuana, the industry has been reaching heights adding significantly to the economy. Among the few early entrants in this sector, Aurora Cannabis seems to be the one to grab the market excess demand opportunity, pooling more investors. The Company will be releasing its Q3 earnings on Monday during the post-market session.
The Company is expected to report higher revenues as mentioned during its guidance for fiscal third-quarter earnings guidance. ACB reported huge profit numbers last quarter which was benefited from an enormous one-time investment gain. ACB is expected to reach a positive EBIDTA by the Company’s fiscal fourth quarter.
Investors are so positive on this stock that its share price rallied even after the Company provided an estimation of a lower than expected revenue numbers vis-à-vis analysts’ consensus.
Twilio (NYSE: TWLO): Share Price Gaining Over Years!
Twilio is about to announce its Earnings for the fiscal quarter ending Dec’ 2018 on 12 Feb’ 2019. The consensus EPS forecast for the earnings to be released is in-line with the Company’s previous earnings of $0.17. Analyst community has provided very aggressive EPS targets and are unanimously bullish on the stock.
The Company provides a cloud communication platform enabling users to develop and run communications within the application in the US and other parts of the World. Its recent acquisition of the leading email API platform, Sendgrid was the key highlight for TWLO this quarter.
The stock price has been continually rallying since the last few years with no major corrections as such. This stock has provided enormous returns of 345% on YoY basis. Investors are keenly looking forward to the Earnings of the Company.