3D Systems (NYSE:DDD): While consumer 3D printers lost most of their mainstream appeal, 3D Systems made a killing focusing on the healthcare industry. The company’s broad portfolio of healthcare offerings continues to exhibit strong upward momentum on solid demand and an expanding client base of doctors and dentists. In the third quarter, revenue from the division jumped an impressive 23 percent whereas total sales increased by only 3 percent. Precision surgical equipment is often very expensive which is why investors are so enthusiastic about these new affordable alternatives. Apart from healthcare, the company intends to drive growth through four channels: expanding quick parts services, accelerating 3D printer penetration, launching proprietary software solutions and strengthening partnerships. Heightened competition from heavy hitters like HP (NYSE:HPQ) and Stratasys (NASDAQ:SSYS) as well as currency headwinds pose near-term threats to earnings and revenue.
Target (NYSE:TGT): Shares of Target tumbled in the past 3 months owing to concerns of a border tax under the Trump administration and heightened competition from online retailers, namely Amazon (NASDAQ:AMZN). In 4 of the past 5 quarters the retailer delivered a negative surprise on the top line while bottom line performance remains respectable. Expectations for the quarter still look tepid given the weak consumer spending outlook and the above factors. A recent change in focus to expanding the grocery business, ecommerce capabilities and well performing categories will offset some of the slowdown Target faced in recent quarters. Lately an assortment of Style, Baby, Kids and Wellness have been the top performing categories that Target aims at building around. In late 2015, Target also divested its pharmacy business to CVS (NYSE:CVS), explaining the dip in revenue comparisons throughout fiscal 2016.
Valeant Pharmaceuticals (NYSE:VRX): Wall Street’s favorite short prepares to report earnings results today and expectations couldn’t be any lower. In the past 6 months the stock tumbled about 45% on a string of weak earnings reports and Trump’s tough stance on the pharma/biotech industry. Besides posting 2 consecutive quarters of negative top and bottom line growth, Valeant remains strapped with multiple billion dollars of debt. In an effort to offload some of its debt, the company announced several divestitures since the start of 2017, worth nearly $500 million in sales. But without a blockbuster drug on the market or in late stage review, the most logical direction for Valeant earnings and stock is down.
Domino’s Pizza (NYSE:DPZ): Not even The Noid can slow down Domino’s current hot streak. The pizza chain continues to ride high after posting spectacular results for the third quarter. Domestic same store sales for the quarter rose 13%, marking the 22nd consecutive quarter of positive growth in the U.S. The company continues to execute efficiently, effectively leverage new technologies and capturing greater market share while Pizza Hut’s (NYSE:YUM) turns lower. Domino’s should continue to outpace the rest of the fast food industry as it strengthens its position in the pizza industry. As the chain makes further efforts to expand growth, the stock will likely follow in the same direction.
AutoZone (NYSE:AZO): A large portion of its growth has been driven by improvements in both the retail and commercial businesses combined with increasing store counts and regular buybacks. That said, AutoZone should expect to see expenses rise as it plans to open 2-3 new distribution centers over the next three years. They also continue to see increasing competition from Advanced AutoParts, PepBoys (NASDAQ:IEP) and even Walmart (NYSE:WMT) and Costco (NASDAQ:COST). Walmart and Costco’s business as a one-stop shop for all consumer needs might deter traffic to a highly focused store like AutoZone. Meanwhile, currency headwinds related to Mexico and Brazil along with President Trump’s hardened stance on the region, could spell trouble for future quarters.