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3 Stocks To Watch In The Coming Week: Home Depot, Salesforce, Aurora Cannabis

By Investing.com (Haris Anwar/Investing.com)ETFsNov 17, 2019 04:01AM ET
www.investing.com/analysis/3-stocks-to-watch-in-the-coming-week-home-depot-salesforce-aurora-cannabis-200485831
3 Stocks To Watch In The Coming Week: Home Depot, Salesforce, Aurora Cannabis
By Investing.com (Haris Anwar/Investing.com)   |  Nov 17, 2019 04:01AM ET
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After a powerful rally that sent major U.S. indices to new record highs last week, markets are entering a sensitive phase. The march higher could face a hurdle this coming week if the U.S. and China fail to provide some positive news on the trade front.

Xinhua, China's state news service reported yesterday that the two countries had "constructive talks," on Saturday. However, no agreement was finalized though the two sides, "agreed to maintain close communication."

Beyond the macro risks, there are still some big earnings announcements ahead during the coming week, especially from a variety of large retail companies. We're keeping a close eye on the following three stocks:

1. Home Depot

The hardware and household improvement chain, Home Depot (NYSE:HD), will be reporting third quarter earnings on Tuesday, Nov. 19, before the open. On average, analysts expect $2.52 a share profit on sales of $27.53 billion.

The world's largest home improvement chain has pursued a variety of successful strategies during the past few years, to fuel growth and benefit from strong consumer spending. In the second quarter, however, Home Depot failed to impress investors when it lowered its sales forecast, warning that falling lumber prices—as well as the potential effects of tariffs on U.S. consumers—could weigh on growth.

HD Weekly 2016-2019
HD Weekly 2016-2019

After a remarkable run over the past five years, during which Home Depot shares, which closed at $237.29 on Friday, gained more than 142%, the stock didn’t participate in the market's most recent run-up during the past month. However, if falling U.S. mortgage rates help fuel home sales and renovation spending, Home Depot's winning streak could still continue.

2. Salesforce.com

Salesforce.com (NYSE:CRM), which sells software and cloud-based services to corporate clients, will be having its annual investor day on Wednesday, Nov. 20, amid optimism on the company’s business direction and growth strategy.

In its most recent earnings report in August, Salesforce provided a revenue forecast that topped Wall Street’s estimates, signaling that the San Francisco-based company will continue to see rapid growth.

CRM Weekly 2016-2019
CRM Weekly 2016-2019

Revenue is expected to be as much as $4.45 billion in the period ending in October, helped by the company’s latest acquisitions. Indeed, in August, Salesforce closed its biggest deal ever, purchasing Tableau Software for $15.3 billion and announcing an agreement to acquire ClickSoftware Technologies Inc. for $1.35 billion.

Salesforce shares closed at $163.21 on Friday, after rising 19% this year.

3. Aurora Cannabis

Aurora Cannabis (NYSE:ACB) became the latest victim of a bloodbath in the cannabis sector, after the company on Friday reported its most recent quarterly earnings which disappointed. The marijuana producer said it will still reach profitability before “any of its peers,” but the company’s chairman, Michael Singer, didn’t say exactly when that will happen.

ACB Weekly 2016-2019
ACB Weekly 2016-2019

The sell-off in pot stocks will likely further deepen as producers fail to live up to investor expectations. After Canada’s legalization of the substance, hopes skyrocketed that these companies would show robust expansion.

Aurora reported an adjusted EBITDA loss of C$39.7 million ($30.33 USD) for the quarter ended Sept. 30, joining other top producers that fell short of expectations, including Canopy Growth (NYSE:CGC), which reported on Thursday, disappointing Wall Street analyst estimates by showing a huge loss.

Aurora shares tumbled as much as 18% Friday, closing at $2.73, the lowest level for the stock in two years.

3 Stocks To Watch In The Coming Week: Home Depot, Salesforce, Aurora Cannabis
 

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3 Stocks To Watch In The Coming Week: Home Depot, Salesforce, Aurora Cannabis

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Comments (3)
me ish
me ish Nov 19, 2019 3:09PM ET
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- I suggest the market temper their expectations - These are still early days for the industry
Jas Sanghera
Jas Sanghera Nov 17, 2019 2:46PM ET
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TCAN with it's 34 million shares and doing business in california will be the first not aurora.
Tshimour Mututila Panda
Tshimour Mututila Panda Nov 17, 2019 1:48PM ET
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