3 stocks to watch over the coming week: Salesforce, Best Buy, Dell Technologies
U.S. equity markets are expected to remain volatile over the coming week as investors focus on the Fed’s interest rate policy amid speculation the central bank may be tightened soon.
In recent speeches, Federal Reserve officials have indicated that the bank may start to slowly reduce its $ 120 billion in bond purchases per month as the economic recovery takes hold.
A similar message could emerge from their annual economic policy symposium, which is due to start on Thursday. The speech by Fed Chairman Powell is usually the culmination of the annual event, and several Fed chairmen used the Jackson Hole, Wyoming meeting to send important messages.
In addition to the stance of monetary policy, investors will also follow earnings releases from some of the largest US companies, which are among the last to be released in the current cycle. Here are three that we are following:
Salesforce.com (NYSE :), which sells enterprise software and cloud-based customer relationship management services to corporate clients, will release its quarterly results on Wednesday, August 25, after market close. $ 6.24 billion in revenue and $ 0.92 in earnings per share.
In May, the San Francisco-based company gave one, saying its annual profit would exceed analysts’ estimates, suggesting an increase in purchases by companies emerging from the pandemic.
As many businesses expect at least some of their employees to stay remotely and tasks like business calls to continue through teleconferencing technology, Salesforce customers are accelerating software modernization.
This favorable growth environment comes as Salesforce strengthened its position by acquiring Tableau in 2019 and MuleSoft the year before. Salesforce is in the process of buying Slack Technologies for $ 27.7 billion, an acquisition designed to fuel sales growth of more than 25% per year.
In the last quarter, Salesforce stock gained about 16%, outperforming the technology index. It closed at $ 256.13 on Friday.
2. Best buy
Best Buy (NYSE :), the big-box electronics and tech chain with stores in the United States and Canada, will release its second quarter results on Tuesday, August 24, before the market opens. The retailer is expected to report earnings of $ 1.89 per share and $ 11.49 billion in revenue, according to analyst consensus.
BBY shares have remained under pressure in the last quarter amid concerns over whether the retailer can maintain the level seen during the pandemic as the US economy reopens after a year of lockdown.
Although demand for its products remains above normal, “there is a high level of uncertainty related to the impacts of the COVID-19 pandemic which makes it difficult to predict the sustainability of these trends,” said CFO Matt Bilunas to investors this year. .
Best Buy stock, which fell about 2% in the last quarter, closed at $ 112.63 on Friday.
3. Dell Technologies
Dell Technologies (NYSE 🙂 will release its fiscal second quarter 2022 results on Thursday, August 26, after the close. Analysts expect EPS of $ 2.03 on revenue of more than $ 25.54 billion.
The Round Rock, Texas-based IT products and services provider faced strong demand for personal computers from workers and students sheltering at home during the coronavirus pandemic. At the same time, however, the sales of corporate clients suffered from the recession caused by the virus.
CEO Michael Dell is trying to reduce his eponymous company’s reliance on one-off hardware sales. Rather, it aims to transform it into a vendor of subscription IT services.
Today, DELL still derives about half of its revenue from PC purchases by businesses and consumers. Dell shares have gained 36% this year, closing Friday at $ 98.50.