Nike Pre-Earnings Analysis Nike’s quarterly earnings are expected later this week on Thursday after market close. The company is expected to post revenues of $13.4B, up from last quarter’s $12.94B, but just around same quarter last year of $13.31B. Analysts adjusted their earnings from this year with a “recession” mindset so they weren’t too optimistic on Nike being able to come in above last year’s numbers. With that in mind, we’re watching Nike’s ability, not to beat last quarter’s numbers, but to beat last year same quarter numbers. If they can do that, then buyers will likely come in to buy the stock. We’re confident Nike will beat earnings for a few reasons. The strong dollar is the leading reason...
FDX Post Earnings Analysis Fedex shares are trading lower after the company’s latest quarterly earnings results. The freight and logistics giant missed Wall Street’s earnings per share estimate, reporting $3.99 vs the $4.19 estimate, but still up from same time last year of $3.19. Revenue also came in just below expectations at $22.2B vs the street’s $22.4B estimate. Prior to their earnings, the company was trading at their 2023 highs and was inching closer to its all-time highs, so the severe post-earnings sell-off a knee-jerk reaction by investors who fear they might have been overpaying for the stock. Companies at 2023 highs, or all time highs, need to satisfy investors by beating earnings, not just mediocrely meeting them. Either way,...
Russell 2000 ETF The small cap index $IWM is one of the most popular ETFs for exposure to US small-cap companies. IWM’s holdings are diversified amongst many different sectors and industries, all within the small Capp segment. Not too long ago, many small cap names were reaching new lows for the year, but recent markets sentiment has shifted all around, leading many names higher. Mid and large cap stocks have pushed to new 2023 highs, boosting other large indexes such as SPY and The Dow to new 2023 highs. This upside move has “leaked” into other parts of the market, bringing buyers back into the smaller, higher risk, names that haven’t seen buying in months. Investing in small caps can...
U (Unity Software) Chart done on daily timeframe. Earlier this year, Apple announced that they will be partnering with Unity to “create immersive real-time 3D apps and simulations to Apple’s new spatial computing platform, Apple Vision Pro” (Unity. com). Partners of Apple have enjoyed exponential growth in the past so many investors are excited to see what’s in store for Unity in 2024. The software company was founded in 2004, but has struggled to maintain notable revenue growth until recent years when it finally topped 1B in annual revenue, but leadership hasn’t been able to move the needle in the right direction when it comes to profitability. As revenue has grown, profitability has moved further into the negative, and free...
IBM Analysis It is always difficult for analysts to stay positive on a company that suddenly loses more than 20B in annual revenue, but IBM may be a name which is worth looking at twice when diving deep into their numbers and valuation. Between 2019 and 2020, IBM’s revenue went from an average of around 80B annually to 55B, an alarming decrease, but since then, they have been slowly climbing back as they recovery from Covid’s impacts. The biggest highlight for them, which is also the highlight for many other companies in their space, is their focus on AI and cloud. Many tech companies have proven that the cloud is at the heart of revenue and is only expected to...
