Earnings season is slowing to a crawl but there are still a few big names left to report. With 94% of the S&P 500 companies already reporting, visibility or lack thereof has been the common theme for the remainder of 2008. First-quarter earnings are down nearly 18% from last year’s quarter yet the market has had a decent run over the past five weeks. Keep this in mind as we head into the summer. (Quotes are from Friday’s close).
Monday
DryShips (DRYS, $110.74, up $4.24). There was some buying in the June 120 calls (DQRFZ, $6.90) on Friday ahead of the company’s earnings today (after the close).
Lowes (LOW, $24.89, down $0.25). Reports before the market opens this morning.
Tuesday
AutoZone (AZO, $127.21, down $1.14). This stock normally makes a big move either way after announcing earnings.
Hewlett-Packard (HPQ, $47.29, up $0.56). HP has made a slight comeback after falling from $52 to $43 to start the year. However, serious resistance is ahead at $49.
Home Depot (HD, $29.10, down $0.43). The company reports earnings before the bell. Lowe’s and Home Depot have been hurt by the housing slump and at some point they will be good buys again.
Intuit (INTU, $27.78, down $0.18). This is normally the company’s biggest quarter as tax season comes full swing. Professional tax preparers use Intuit’s tax forms, tax return presentation folders, and other supplies to prepare taxes.
Target (TGT, $54.88, down $0.22). I think Target has had trouble keeping up with Wal-Mart and I wouldn’t be surprised if this stock traded lower after announcing earnings.
Wednesday
BJ’s Wholesale Club (BJ, $39.26, down $0.76). Believe it or not, BJ’s hit a 52-week high on Friday before retreating. The stock is up nearly 50% for 2008 and a strong earnings report could keep the stock rolling.
Thursday
Dick’s Sporting Goods (DKS, $29.12, down $0.36). The stock was at $25 back in March when Dick’s lowered expectations for the current quarter. At the time, the company said earnings would be $0.16 to $0.19 a share versus expectations of $0.23 a share.
Gap (GPS, $18.43, down $0.75). Nothing to get excited about here.
Toro (TTC, $41.06, down $0.45). Like Lowe’s and Home Depot, the housing slowdown has really hurt this stock which is hoovering around its 52-week low of $38.
Rick Rouse
Rick@OptionsMentoring.com
