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One Stock To Buy, 1 To Dump When Markets Open: Tesla, Krispy Kreme

By Jesse Cohen/Investing.comStock MarketsAug 15, 2021 08:32AM ET
www.investing.com/analysis/one-stock-to-buy-1-to-dump-when-markets-open-tesla-krispy-kreme-200598679
One Stock To Buy, 1 To Dump When Markets Open: Tesla, Krispy Kreme
By Jesse Cohen/Investing.com   |  Aug 15, 2021 08:32AM ET
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Stocks on Wall Street eked out small gains on Friday, with the benchmark S&P 500 index reaching yet another record high amid strong corporate earnings.

S&P 500 Daily Chart
S&P 500 Daily Chart

As second quarter earnings season starts to wind down, this week will see several high-profile retail companies reporting, e.g., Walmart (NYSE:WMT), Target (NYSE:TGT), Macy’s (NYSE:M), Home Depot (NYSE:HD), NVIDIA (NASDAQ:NVDA), and Cisco Systems (NASDAQ:CSCO). Add to that the latest U.S. retail sales figures and the FOMC meeting minutes, and the week ahead is expected to be an eventful one.

Regardless of how the market reacts, below we highlight one stock likely to be in demand in the coming days and another which could see fresh losses. 

Remember though, our timeframe is just for the week ahead.

Stock To Buy: Tesla

Tesla (NASDAQ:TSLA) shares are likely to enjoy increased buying activity in the week ahead as the electric vehicle maker holds its highly anticipated artificial intelligence event, dubbed ‘AI Day’ on Thursday, Aug. 19. Tesla reported second quarter earnings back in July.

The invitation-only event is expected to provide updates on the EV pioneer's increasing role as an AI robotics player with new revenue stream potential, as Tesla seeks to enter new markets, including battery storage, and trucking logistics.

AI Day will feature a keynote speech by Tesla's CEO Elon Musk, as well as hardware and software demos from Tesla engineers showcasing the company's AI use cases beyond its EV fleet. Tesla will also likely give updates on its neural networking training Dojo Supercomputer project.

TSLA Daily Chart
TSLA Daily Chart

TSLA shares ended Friday’s session at $717.17, roughly 20% below their all-time high of $900.13 touched on Jan. 25, giving the Palo Alto, California-based company a market cap of $718.4 billion.

 At current valuations, Tesla is the world’s largest automaker, bigger than names such as Toyota (NYSE:TM), Daimler (OTC:DDAIF), General Motors (NYSE:GM), Honda (NYSE:HMC), and Ford (NYSE:F).

The electric vehicle sector was one of the best-performing group of stocks, before an aggressive reset in valuations hit the industry earlier this year.

 After scoring a gain of more than 740% in 2020, TSLA shares are up just 1.6% in 2021.

Stock To Dump: Krispy Kreme

Shares of Krispy Kreme (NASDAQ:DNUT)—which started trading on the NASDAQ after going public for the second time in its history last month—are expected to suffer another volatile week as investors brace for disappointing financial results from one of America’s largest doughnut chains.

Krispy Kreme first went public during the 2000 dot-com bubble and then reverted to private in 2016 after being purchased by JAB Holdings for $1.35 billion. The donut and cake maker is scheduled to report earnings on Tuesday, Aug. 17 after the closing bell.

Consensus estimates call for earnings per share of $0.13 for the second quarter, while revenue is forecast to clock in at $332.6 million.

Perhaps of greater importance, investors will monitor growth in Krispy Kreme’s same-store sales, a key metric in the retail industry which evaluates sales in stores that have been open for at least a year.

Market players will also be keen to hear if the company, which raised $500 million from its IPO, plans to take further steps to reduce its high debt load.

In addition, Krispy Kreme’s outlook for the rest of the year will be in focus amid lingering uncertainty resulting from the COVID health crisis and as Americans continue to shift away from sugary foods toward health-conscious alternatives.

DNUT Daily Chart
DNUT Daily Chart

The Charlotte, North Carolina-based company launched its second initial public offering on July 1, pricing its IPO at $17 per share. That was well below the original listing price range of $21-to-$24 a share.

DNUT stock surged briefly in its first day of trading, reaching a peak of $21.69, before pulling back sharply in the days and weeks following its debut.

Shares—which are down 28% since their IPO—fell to a new low of $14.70 on Friday, before closing at $15.03. At current levels, the maker of doughnuts and other sweet treats has a market cap of $2.46 billion.

One Stock To Buy, 1 To Dump When Markets Open: Tesla, Krispy Kreme
 

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One Stock To Buy, 1 To Dump When Markets Open: Tesla, Krispy Kreme

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Comments (23)
Fabrizio Fusaro
Fabrizio Fusaro Aug 17, 2021 12:59PM ET
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This guy is amazing he made the same article (tesla to buy) when it was close to 900 now same article and tesla dump 10% in 2 days… an horacle 🤣🤣🤣
Mojo Snake
Mojo Snake Aug 16, 2021 9:51PM ET
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Krispy is winning today
Yarik Magda
Yarik Magda Aug 16, 2021 8:59PM ET
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When they say buy do opposite
Yarik Magda
Yarik Magda Aug 16, 2021 8:58PM ET
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Well done
Chopin Liszt
Chopin Liszt Aug 16, 2021 11:03AM ET
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biggest loser analyst ever. what a loser
Aa Bb
Aa Bb Aug 16, 2021 10:38AM ET
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Just do the opposite of any recommendation.
Michael Feeney
Michael Feeney Aug 16, 2021 10:38AM ET
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Lol ….
Meru Pet
Meru Pet Aug 16, 2021 10:30AM ET
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you nailed it
Michael Feeney
Michael Feeney Aug 16, 2021 8:46AM ET
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Monday morning now.. with taper news and investigation into tesla autopilot , do you still give it a buy this week or should we keep our powder dry?
Chris Johnson
Chris Johnson Aug 16, 2021 5:59AM ET
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What a lousy article... Tesla is not the world's largest automaker. It's the most (over)valuable
Chris s Churchill
Chris s Churchill Aug 15, 2021 10:32PM ET
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sorry for the repetition
Chris s Churchill
Chris s Churchill Aug 15, 2021 10:30PM ET
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why do you say tesla is over valued have you done a analysis on the company
jak mako
jak mako Aug 15, 2021 9:00PM ET
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This guys articles are becoming a JOKE
Miles Mathewson
Miles Mathewson Aug 15, 2021 7:14PM ET
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Buy Tesla again? This guy say the same thing every week...FGS, where is the disclaimer you're long Tsla?
Francesco Lucchesi
Francesco Lucchesi Aug 15, 2021 1:49PM ET
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beyond belief. Tesla is most overvalued stock ever
Meru Pet
Meru Pet Aug 15, 2021 1:21PM ET
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ok im gonna buy an etf -1 tesla daily
Chopin Liszt
Chopin Liszt Aug 15, 2021 12:30PM ET
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okay. buy dnut and sell tesla gotcha
Elmer Fudd
Elmer Fudd Aug 15, 2021 11:45AM ET
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If the market corrects, Tesla would be one of the stocks most impacted with a P/E ratio of about 355. Surprised with this recommendation
Mintcars LLC
Mintcars LLC Aug 15, 2021 11:20AM ET
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dnut isn't going anywhere like dunkin
Edward Dominguez
Edward Dominguez Aug 15, 2021 11:20AM ET
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they not, but the competition is getting bigger and better. for example, we just discovered a little spot in Houston with great french bread and other baking. no Dunkin for me when this joint offer a better selection ☺️.
me ish
me ish Aug 15, 2021 11:20AM ET
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yeah, like when will be get it? you are what you eat - literally - so after most people should have woken up to the fact that folk with diabetes and who are overweight / obese are far more likely to die from viruses, perhaps they should stop eating rubbish food and start eating far more healthier - f you want to live beyond 40 without a whole load of health problems. The processed food and drinks industry works hand in glove with the pharma industry - one creates chronic disease, the other provides drugs to lessen the symptoms (not cure) chronic diseases - huge profits for both so long as people continue to behave like addicted sheep.
Tun Tun
Tun Tun Aug 15, 2021 11:10AM ET
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SGP 500BTC
Tun Tun
Tun Tun Aug 15, 2021 11:08AM ET
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SGP 500
Tim King
Tim King Aug 15, 2021 11:07AM ET
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Tesla is way overvalued. Since joining the SP500 it has lagged tremendously. A similar scenario is when yahoo joined decades ago, and the price hasnt moved much since.
Rob TEE
Rob TEE Aug 15, 2021 11:07AM ET
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Lol tsla overvalued with record breaking growth, amazing earnings, leading the charge setting solid foundation for the future of EV Sector thru innovation of long distant batteries, AI, safety, durabilty, charging network, creating global supply chain that is profitable amazing margin and last but not least tesla is basically sold out for the rest of 21 only focus is deliveries. Company has high short volume which will bring negative sentiment but tsla will soon silence the critics very solid company potentially 1k-4k stock next 5 yrs in my book
Sharon Hairworld
Sharon Hairworld Aug 15, 2021 11:06AM ET
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Hello
Santiago Debus
Santiago Debus Aug 15, 2021 10:13AM ET
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long $tsla
Michael Feeney
Michael Feeney Aug 15, 2021 10:13AM ET
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950 by christmas
 
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