5 Stocks Setting Up for BIG MOVES in December

Several companies are slated to announce their quarterly results this week. Amid the holiday season, two industries to particularly watch out for are retail and software, as analysts expect strong earnings…

The software industry particularly has had a good run this year, however, their bullishness has slowed down in recent weeks due to valuation concerns and the positive vaccine news. In contrast, the retail sector was hit hard by the spread of the pandemic, however, it has recovered over the last few weeks primarily because of the holiday season and investors’ optimism over the return to normal with the arrival of coronavirus vaccines.

It will be interesting to see how companies in these sectors performed in the third quarter. Salesforce.com, Inc. (CRM – Get Rating), Dollar General Corporation (DG – Get Rating), Splunk, Inc. (SPLK – Get Rating), CrowdStrike Holdings, Inc. (CRWD – Get Rating), and Ulta Beauty, Inc. (ULTA – Get Rating) have done exceptionally well this year. They reported better than expected results in the previous quarter, and the trend could have continued in the last reported quarter as well. Analysts estimate these companies to deliver year-over-year growth in revenues and earnings in their upcoming results, which should translate into solid price momentum in the near term.

Salesforce.com, Inc. (CRM – Get Rating)

CRM provides cloud computing solutions for businesses. The company’s primary focus is on customer relationship management. CRM’s stock has gained 52.2% so far this year.

The company recently announced that its artificial intelligence powered Salesforce Einstein now delivers more than 80 billion predictions per day across all solutions. The company has also launched Revenue Cloud, aimed at helping businesses maximize its revenues.

For the second quarter that ended July 2020, the company reported an increase in revenue of 29% compared to the same period last year. For the third quarter, the company expects revenue to increase approximately 16% year-over-year.

The company is scheduled to release its quarterly results on December 1st. Analysts estimate CRM’s revenue to grow 16.3% year-over-year for the quarter that ended October 2020, and 21.7% in 2021. The company’s EPS is expected to remain stable at $0.75 for the about-to-be-reported quarter, rise 25.4% in 2021, and at a rate of 16.7% per annum over the next five years.

How does CRM stack up for the POWR Ratings?

A for Trade Grade

B for Buy & Hold Grade

B for Industry Rank

B for Overall POWR Rating

The stock is also ranked #20 out of 48 stocks in the Software – Business industry.

Dollar General Corporation (DG – Get Rating)

DG operates as a discount retailer. The company retails a diverse range of products including consumables, clothing, home products and more. The company’s stock has gained 39.7% so far this year.

For this holiday season, the company announced a range of measures that would make it safer for customers to shop. The company provided pick-up services, a cart calculator, among other allied services.

For the second quarter that ended July 2020, the company reported an…

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