5 Stocks To Watch This Week

I took a look at the earnings calendar for the week and wanted to share a few names that will be of interest. I know this is coming out a little late for stocks that report after the close tonight and before the open tomorrow, so I will focus on stocks that report after the close Tuesday, June 6.

Ambarella (AMBA)

The chip company that makes ultra high definition cameras like the GoPro and others is slated to report after the close on Tuesday. Wall Street is looking for $63.5M on top and $0.36. The stock is currently a Zacks Rank #3 (Hold) but has been on quite a run from around $50 in mid April to a recent high of $65. The stock has a 74x forward multiple and has an earnings ESP of 0%.

Brown Forman (NYSE:BFb) (BF.B)

This Zacks Rank #2 (Buy) stock is reporting Wednesday morning before the open. There is a chance for some sticker shock here with expectations calling for a top line number of $738M which down 30% from the previous quarter and down from $933M the year ago. The Wall Street EPS Number of $0.40 is going to be compared to the $0.84 year ago number. There was talk that Constellation Brands (NYSE:STZ) was looking to buy the company but the CEO said they are not for sale. Look for more color on this idea on the earnings call.

Navistar (NAV)

This is a Zacks Rank #3 (Hold) but the stock was upgraded to Outperform at Robert Baird today. They set a new target of $33, up $1 from the current level but they believe over the next few years the stock could run to $50. An upgrade the week of earnings is a big sign of conviction on the part of the analyst, so look for some good numbers. With the jolt higher in price today, there might be some expectations so that could limit upside unless the report is a huge blowout.

Okta (OKTA)

This stock just started trading in April, so this is the first report. It is important to beat on your first report so that alone makes this stock one worth looking at. It is a Zacks Rank #3 (Hold) but that will probably change after the report. when the brokers initiated coverage following the quiet period, it was a mixed bag so the picture is not that clear. OKTA reports after the close on June 7.

Tailored Brands (TLRD)

This is a Zacks Rank #1 (Strong Buy) and it only trades at 6x forward earnings estimates. The company reports after the close on June 7, and has been a favorite of the shorts. I see 26% of float sold short, but this stock could be hitting rock bottom. Estimates have inched higher over the last month or so, with 2017 looking for $1.74 when it was $1.66 back in April. This one could see a huge squeeze if they report good numbers and include a good outlook as well.

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