The week in preview: Undercovered
Filed under: Earnings reports, NIKE, Inc’B’ (NKE), Housing
It is going to be an interesting week. The Fed and oil will be at odds, and tempers are sure to flare on the trading floors. There are many earnings and eco reports we’re looking at, and it is hard to choose which will be front and center. Traders and investors will be closely following each move by the Fed as they will be releasing a policy statement at 2:15 p.m. on Wednesday.
Also, stocks within the homebuilders group will be front and center as a few key players will share their earnings results. Have you seen the charts of these companies lately? Click for a good comparison. And after you take a peek, you might also wonder if they’re actually stock charts or ski slopes. So with that as the backdrop, here are a few names that may actually be undercovered and worth a look.
Tuesday, June 24
Anything related to the vehicle industry has been under siege of late, and I can’t envision how that will change anytime soon. HB Fuller Co. (NYSE: FUL) is involved in the manufacturing of the industrial performance/adhesive products for the assembly/packaging and car markets. The fact that the economy is lagging would lead one to the realization that, unless we see a swift turnaround of epic proportions, the reality of a lower share price will come with the next earnings release. Several down days of late have also had increasing volume, and that is not a good sign for a stock that’s beginning to show signs of breaking down. Even so, First Call is showing a $0.45 per share quarterly estimate on $347 million of revenue.
Wednesday, June 25
Looking like a “dead cat bounce,” the chart pattern of Jabil Circuit (NYSE: JBL) has seen a massive amount of retracement since the beginning of June as estimates have been rising and investors are looking to get in as it recently broke its 50-day moving average. Now shares have just touched the longer 200-day moving average, and analyst expectations of $0.20 per share on $3 billion of revenue will verify whether the early birds will get their worms.
Nike Inc. (NYSE: NKE) is a name will get some good attention, and merits a look if stability is something you’re after. Earnings have been consistent and the chart is looking splendid. Shareholders seem to be holding the price stable, even with the horrible economic circumstances that seemed to be upon us. Look at a long-term chart and you will see that Nike shares have been on the rise since September of 2006. Overall, the fundamentals are strong and the chart looks solid. Unless there’s a major surprise with the earnings, expected to come in at $0.96 per share, the trend is likely to continue.
Thursday, June 26
Then there is Finish Line (NASDAQ: FINL), a retailer that has 700 stores under the Finish Line logo and another 150 retail stores within the shoe and men’s apparel sector. If you have a moment, check out this chart, as it is really breathtaking. Investors will have to take a moment of thought before entering into this position, with such a significant run down and run up. Unless you’re seeing something that I don’t see, I don’t have any answers to why there has been this level of volatility. Analysts are expecting a loss of $0.05 a share this quarter.
Disclosure: Horowitz & Company clients do not hold positions of any of the stocks mentioned as of the date of publish. Andrew Horowitz is a Money manager and author of the bestseller The Disciplined Investor: Essential Strategies for Success.
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