These stocks to watch this week may be diverse in industries but united in potential
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Midway through the current earnings reporting period, companies have been delivering results exceeding market expectations. As we forge ahead, now is the right time to discuss which stocks to watch this week.
A trend observed during this earnings season is the increase in stock buybacks, a strategy executives employ to goose stock prices. So far in 2024, the daily average value for announced buybacks has reached $6.9 billion, surpassing the prior 4-year average of $6.5 billion for the same period. Firms expected to announce buybacks will likely draw additional interest, making good candidate stocks to watch this week.
With American consumers showing a proclivity towards budget brands as inflation continues to bite, budget alternative stocks could outperform. The travel sector is one of the outliers within the cash-conscious environment, with travel and tourism names exceeding forecasts. This points to some promising stocks to watch this week.
Deere & Co (DE)
Deere & Co (NYSE:DE) is poised to report its Q4 earnings on February 15, making it one of the stocks to watch this week. Those seeking clues about the food production industry are eagerly anticipating the company’s results. Additionally, the purchasing patterns for lawn care equipment could mirror the spending capacity of American consumers. For example, those with surplus cash may opt to buy new lawnmowers. However, tight household budgets could postpone upgrading of equipment for a later period. High interest rates have already impacted the company, leading farmers to delay the purchase of new equipment in hopes of more favorable loan options arising. As such, DE will be one of the interesting stocks to watch this week.
Analysts forecasts indicate a 20% drop in EPS from the year before to $5.16 billion, with lower sales of $10.3 billion. Aside from expectations, crop prices have seen a downturn lately, and Deere’s results are often seen as an indicator of the agricultural sector’s health, which feeds into food price inflation.
Investors will likely focus on the company’s outlook and prospects of policy easing for gauging the potential growth across industrial agriculture sales.
Another stock investors must watch this week is Coca-Cola (NYSE:KO), the staple soft drink manufacturer. The reason is similar to that of McDonald’s (NYSE:MCD) attracting attention. As one of the most frequently purchased products globally, KO’s sales fluctuations can provide key insights into evolving consumer sentiment and the general perception of the economy. That makes KO another one of the stocks to watch this week.
Given the company’s multinational presence, investors analyze how KO performs in regional divisions to discern varying economic conditions between the U.S. and other major markets. The upcoming quarterly results will be scrutinized for any evolution in demand patterns.
Analysts forecast a 6.7% surge in Coca-Cola’s profits, reaching $0.48 EPS, with a 5.1% revenue increase to $10.6 billion. However, a rise in sales or prices could drive a market reaction. If Coca-Cola appears to encounter challenges in passing on higher costs to consumers, it would suggest a drop in U.S. consumer sentiment. Overall, several reasons exist to consider adding KO to the list of stocks to watch this week.
Airbnb (NASDAQ:ABNB), among tech companies releasing earnings this week, could draw extra scrutiny. As a hotel alternative, ABNB frequently indicates travel demand, disposable income and how the housing market does. Given the numerous factors, it’s safe to say that Airbnb is one of the stocks to watch this week.
Forecasts suggest the company will report a significant rise in EPS of 43.8% to $0.69. A revenue increase of 13.7% to $2.16 billion is also expected. Investors might look to determine whether the growth stems from market expansion or rising rental prices. Yet, the company’s outlook is where attention will likely be more intense to gauge the company’s ability to maintain demand throughout the year. Social chatter has been lively around increasing fees from hosts, with many curious to see what steps Airbnb might take to regain a positive brand image.
On the date of publication, Stavros Tousios did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.