Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

3 Stocks To Watch In The Coming Week: CVS Health, PepsiCo, NVIDIA,

By Investing.com (Haris Anwar/Investing.com)Stock MarketsFeb 09, 2020 03:56AM ET
www.investing.com/analysis/3-stocks-to-watch-in-the-coming-week-cvs-health-pepsico-nvidia-200505915
3 Stocks To Watch In The Coming Week: CVS Health, PepsiCo, NVIDIA,
By Investing.com (Haris Anwar/Investing.com)   |  Feb 09, 2020 03:56AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
US500
+1.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+1.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NVDA
+1.97%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CVS
+1.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WBA
+0.90%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PEP
+0.91%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The past week's trade indicated that investors are finding it increasingly difficult to ignore the uncertainty around the still-spreading coronavirus outbreak, which to date has seen the number of fatalities, primarily in China, topping 800. On Friday, when the U.S. economy produced a stronger than expected jobs report, there was no other reason for stocks to decline.

Despite this economic strength, the Dow Jones Industrial Average dropped 277 points, while the S&P 500 and NASDAQ both declined 0.54% during the trading day. That trend is likely to continue as health officials globally scramble to control the epidemic and officials warn about the economic cost of the outbreak.

Chinese authorities said fatalities in China from the coronavirus reached a single-day high of 89 on Saturday; on Friday they also confirmed 3,399 new cases of infections from the virus that causes respiratory illnesses, bringing the total number of people infected to 37,198.

Along with this macro risk, investors will be digesting some important earnings releases this coming week. These three could have key implications:

1. CVS Health

CVS Health (NYSE:CVS) reports on Wednesday, Feb. 12, before the market opens. For the fourth quarter of 2019, analysts expect earnings per share of $1.68 on sales of $63.9 billion.

The drug store chain raised its 2019 earnings forecast a couple of times, helped by growing revenue and profit from the company’s drug benefits unit. CVS’s success is being driven by a diverse mix of corner pharmacies, drug benefit-related services and health insurance, an agglomeration of strength competitors are lacking.

CVS Weekly TTM
CVS Weekly TTM

At the same time, the company has been transforming some of its stores into “health hubs,” transitioning retail floor space into areas where customers can get medical and other health services. Even as the Rhode Island-based health services company raised its profit forecast in November, retail rival Walgreens Boots Alliance (NASDAQ:WBA) has been slashing costs and closing stores.

This strong growth also helped CVS shares, which rose more than 23% in the past six months, outperforming peers. The stock closed on Friday at $71.56 after gaining more than 1% for the day.

2. PepsiCo Inc.

Snack and beverage giant PepsiCo (NASDAQ:PEP) will report fourth quarter earnings on Thursday, Feb. 13, before the market opens. Analysts, on average, expect $1.44 a share profit on sales of $20.24 billion.

Last year, Pepsi continued its strong growth momentum as consumers didn’t put a brake on their purchases despite the soda-maker raising prices for its products. Pepsi said in October it will meet or exceed its full-year revenue growth after sales and profit both topped Wall Street estimates for Q3.

PepsiCo Weekly TTM
PepsiCo Weekly TTM

That report had provided strong evidence that Pepsi’s sales momentum is backed by a robust demand revival and the success of the company’s product mix which includes such popular brands as Tropicana, Pepsi, Frito-Lay and Tostitos brand chips.

After rising 28.5% in the past 12 months, Pepsi hit a record high on Friday of $145.72, the stock closed just a hair lower, at $145.37.

3. NVIDIA Corporation

One of the world's largest chipmakers, NVIDIA (NASDAQ:NVDA), also reports Q4 earnings on Thursday, albeit after the close. Analysts are expecting EPS of $1.66 a share on revenues of $2.96 billion.

After the U.S.-China trade deal, along with strong demand from gaming products, data centers and cell phone manufacturers, the semiconductor sector is going through a revival. But NVIDIA's recent stock rally leaves a little room for error.

NVDA Weekly TTM
NVDA Weekly TTM

Investors have been bidding up shares of the Santa Clara, CA-based chipmaker since August, boosting the stock 70% higher in the past 12 months. Shares closed on Friday at $251.59 after falling 1%.

Given the company's large exposure to China, this coming week's earnings report and outlook will be very important for investors to see whether the company expects any impact on its business from the coronavirus outbreak.

3 Stocks To Watch In The Coming Week: CVS Health, PepsiCo, NVIDIA,
 

Related Articles

3 Stocks To Watch In The Coming Week: CVS Health, PepsiCo, NVIDIA,

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email