As the earnings season comes to a close there are fewer companies reporting quarterly numbers each week, but there are still big names that are important to watch.
This week we will get a slightly clearer picture on the health of the overall economy with reports from a major shipping company and a company that provides uniforms to corporations. We also get a little more insight into consumer sentiment with reports from an upscale jeweler and a sporting goods retailer.
Every earnings report is important whether you own the stock or not because each can shine light on broader market and economic conditions that do impact your personal holdings, so whether or not you own any of the following stocks, pay attention to their quarterly releases for any clues you can get to overall economic conditions moving forward.
FedEx (FDX)
Shipping giant FedEx (FDX) is scheduled to release its fiscal third-quarter results on Tuesday. The company will report its quarterly numbers after the market close with the consensus calling for earnings of $3.10 per share on revenue of $17.68 billion. During the same period last year FedEx reported earnings of $3.72 per share and sales of $16.5 billion. FDX stock took a big hit in December after the company missed its earnings estimate and the company slashed its 2019 full year guidance due to global economic uncertainties. FDX made back some of its December losses as the broader market rallied in January, but shares have been stuck in a sideways patter since the start of February. The good news is that the lowered guidance has already been priced into the stock. The stock trades at a very low valuation with a forward P/E of just 10 which creates a lot of upside potential as long as the company is able to hit its lowered estimates moving forward. The street expects a small earnings beat with a whisper number of $3.13 per share. FDX is trading at $180.93 and the 17 analysts that cover the stock have an average price target of $220.40.
Get More Analysis and Trade Ideas on FedEx (FDX) Stock
Tiffany (TIF)
Upscale jeweler Tiffany (TIF) is scheduled to release its fourth-quarter numbers before the market open Friday. The consensus calls for earnings of $1.60 per share for the quarter, with revenue of $1.34 billion. During the same period last year, the company earned $1.67 per share on sales of 41.33 billion. After a very bearish second half of 2018 TIF stock hit a bottom in December and has been slowly rising through 2019. The overall picture has been positive for retailers this earnings season and the street expects a small earnings beat for Tiffany with a whisper number of $1.61 for the quarter. The stock has a reasonable valuation with a forward P/E of 19.6 and analysts forecast per annum earnings growth of 10.3% over the next five years for the company. If TIF is able to deliver a positive earnings surprise as expected, the stock should climb to at least its next level of resistance which is at $105, and if results are weaker than expected the stock sells off it should find support around $90. TIF is now trading at $97.02 and the 15 analysts who cover the stock have an average price target of $113.25.
Get More Analysis and Trade Ideas on Tiffany (TIF) Stock
Hibbett Sports (HIBB)
Athletic goods retailer Hibbett Sports (HIBB) will report fourth-quarter earnings before the market open Friday. Analysts expect the company to show earnings of $0.38 per share on revenue of $299.3 million. During the same period last year Hibbett earned $0.51 on revenue of $266.7 million. HIBB has reported weaker than expected profits for three straight quarters, but the street expects the company to break that streak with a whisper number of $0.39 for a penny beat. The string of earnings misses has hurt the stock but after hitting a 52-week low in December shares have enjoyed a nice rebound as strength returned to the overall market in 2019. For HIBB to extend its recent gains the company desperately needs to post the positive earnings surprise the market expects. HIBB has a low valuation with a forward P/E of 10.6 with earnings expected to rise a modest 4.2% per annum over the next five years. HIBB trades at $18.55 with an average price target of $17.50.
Get More Analysis and Trade Ideas on Hibbett Sports (HIBB) Stock
Cintas (CTAS)
Cintas (CTAS) provides corporate uniforms and business services. The company is scheduled to report its fiscal third-quarter numbers after the market close Thursday. The consensus calls for earnings of $1.73 per share and revenue of $1.69 billion, up from $1.37 and $1.59 billion during the same period last year. The overall economic landscape in the U.S. remains upbeat which has helped Cintas grow and the stock is currently trading just shy of its all-time high. Valuation is a bit of a concern with the stock trading at 25 times past and future earnings, but the valuation is acceptable as the company is forecast to grow earnings by 16% per annum over the next five years. The street expects five cents earnings beat for the quarter with a whisper number of $1.78. CTAS is trading at $206.87 and the 10 analysts that cover the stock have an average price target of $202.29.
