The earnings calendar is looking thin this week with the shortened holiday week. The earnings season is winding down, and it has been an overwhelmingly positive season, with a strong economy and low unemployment driving a strong season and pushing the market to record highs.
There is growing optimism that the U.S and China will be able to reach a phase one trade deal by the end of the year, which would remove a lot of uncertainty from the market and result in a nice rally for the market.
This week will also officially kick off the all-important holiday shopping season as retailers across all sectors look to attract the most foot traffic possible with door-busting sales.
The market will pay a lot of attention to how the holiday shopping season is shaping up, but the remaining earnings reports will also play a role in how the market moves in the final weeks of the year.
Here are four big-name stocks that are set to report their most recent quarterly numbers this week.
Autodesk (ADSK)
Autodesk (ADSK) reports its third-quarter numbers after the market close Tuesday. The company is expected to post earnings of $0.73 per share, up from $0.29 during the same period last year. Autodesk stock has trended higher over the last month, and shares are approaching their 52-week high. The stock's valuation is a concern with shares trading at 37 times future earnings. The stock's valuation should not raise alarms since the company is forecast to grow profits at an annual rate of 74% over the next five years. Last quarter the company posted better than expected numbers on both the top and bottom line, and analysts expect another earnings beat this quarter with a whisper number of $0.75. The stock is currently priced for perfection, and there is downside risk should the company not deliver the small earnings beat the market expects. ADSK is currently trading at $169.13 with an average price target of $170.76.
Deere & Co. (DE)
Heavy machinery maker Deere & Co. (DE) is scheduled to release its fiscal fourth-quarter numbers Wednesday. The company will report its quarterly results before the market opens with the consensus calling for earnings of $2.13 per share. The stock has risen in recent months as expectations have increased in a possible trade deal between the U.S. and China. The stock is currently trading just shy of its all-time high, but its valuation remains attractive. DE shares are currently trading at just 17 times earnings, and analysts forecast profits to rise at an annual rate of 14.5% over the next five years. Deere has reported weaker than expected earnings in the last five quarters, but analysts expect better results this quarter with a small earnings beat and a whisper number of $2.18. The stock is currently trading at $176.15 with an average price target of $171.54.
HP Inc. (HPQ)
HP Inc. (HPQ) will report fiscal Q4 results on Tuesday. The company is scheduled to report its quarterly numbers after the market close with the consensus calling for earnings of $0.58 per share. The company has posted better than expected earnings in the last two quarters, but sales were slightly under the consensus last quarter. After a steep selloff at the start of October, the stock has trended higher the last six months ahead of its upcoming quarterly report. The company has struggled in recent years to grow earnings with profits down 8.9% per annum in the last five years but looking ahead analysts forecast profits to rise at an annual rate of 3.8% over the next five years. The stock trades at an attractive 7.4 times earnings providing a lot of upside in the stock if results are able to top estimates. The street expects a small earnings beat with a whisper number of $0.60 which should keep momentum in the stock and push shares higher. HPQ trades at $20.14 with an average price target of $19.92.
Guess (GES)
Apparel retailer Guess (GES) reports third-quarter earnings on Tuesday. Guess reports after the market close, with the consensus calling for earnings of $0.19 per share. The street expects a small earnings beat with a $0.21 whisper. The retail sector has been strong in the recent economy with low unemployment and rising wages driving consumer confidence and spending. Despite the overall strength in retail, top-end retailers such as Guess have not been as strong as consumers continue to prefer low-cost alternatives for their shopping needs. Guess has been stuck in a sideways pattern since late August when it gapped higher on the back of a Q2 report that topped estimates on both the top and bottom line. The stock is currently trading at just 11 times future earnings which are forecast to rise at an annual rate of 4.4% over the next five years. The modest earnings growth and the company's recent streak of earnings misses will keep the market from pushing shares higher barring a big beat for the recent quarter. Analysts do see upside in GES which trades at $18.42 with an average price target of $21.75.
