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Stock: TGT
Basic Information: Target Corporation (TGT) is a general merchandise retailer that operates in the United States. It offers a wide range of products, including food, apparel, home décor, electronics, toys, beauty, and household essentials. It also provides online and in-store services, such as Target.com, Target Optical, Target Café, and same-day delivery.
Technical analysis: TGT stock has been trading in a downtrend since reaching its 52-week high of $183.89 in March 2023. The stock has broken below its 50-day and 200-day moving averages, indicating bearish momentum. The relative strength index (RSI) is below 30, suggesting that the stock is oversold and may be due for a bounce. However, the MACD histogram is negative and widening, indicating that the selling pressure is strong and may continue. The stock faces resistance at $128.32, which is the previous close, and support at $124.96, which is the 52-week low.
Fundamental analysis: TGT is expected to report its second-quarter earnings on Wednesday, August 16th, before the market opens. Analysts expect the company to report earnings per share (EPS) of $2.05, which would be a decrease of 6.2% from the same quarter last year. The consensus revenue estimate is $24.39 billion, which would be an increase of 0.5% from the same quarter last year. The company has a history of beating earnings estimates in the past four quarters, with an average surprise of 23.4%. However, the company faces several challenges in the current quarter, such as rising costs, supply chain disruptions, inventory shrinkage, and increased competition from online and discount retailers.
Outlook: TGT has a mixed outlook for the upcoming earnings report. On one hand, the company may benefit from its loyal customer base, its omnichannel capabilities, its strong brand recognition, and its diversified product portfolio. On the other hand, the company may suffer from margin pressures, higher expenses, lower traffic, and lower discretionary spending due to the ongoing pandemic and economic uncertainty. The company may also face headwinds from regulatory scrutiny, labor shortages, and cybersecurity risks.
Educational Prediction: Based on the technical and fundamental analysis above, I would give an educational prediction that TGT stock is more likely to miss expectation than to hit or exceed it. The stock has been underperforming the market and its peers in recent months, and the company faces significant challenges in its operating environment. The stock may also experience volatility and selling pressure after the earnings report.
Educational prediction of the stock’s price by end of the week: Based on the technical and fundamental analysis above, I would give an educational prediction that TGT stock’s price by end of the week would be lower than its current price of $125.05. The stock may test its 52-week low of $124.96 or even break below it if the earnings report disappoints investors. The stock may also face resistance at $128.32 or higher levels if the earnings report surprises positively. However, given the bearish trend and sentiment around the stock, I would expect more downside than upside potential for TGT stock by end of the week.
Stock: ZIM
Basic Information: ZIM Integrated Shipping Services Ltd. (ZIM) is a global provider of container shipping and related services. The company operates in four segments: Pacific, Atlantic, Mediterranean, and Intra-Regional Services. ZIM offers cargo transportation services, cargo tracking, customs clearance, marine insurance, and other value-added services. ZIM was founded in 1945 and is headquartered in Haifa, Israel.
Technical analysis: ZIM has been in a strong uptrend since its initial public offering in January 2023, when it priced at $15 per share. The stock reached an all-time high of $52.1 on March 22, 2023, before consolidating in a range between $40 and $50 for the next four months. The stock recently broke out of this range on July 28, 2023, when it closed at $51.4 on above-average volume. Since then, the stock has continued to climb higher, reaching $53.8 on August 11, 2023. The stock is trading above its 50-day and 200-day moving averages, indicating a bullish momentum. The relative strength index (RSI) is at 67.6, suggesting that the stock is not overbought yet. The moving average convergence divergence (MACD) is positive and rising, indicating a strong upward trend.
Detailed Summary Fundamental analysis: ZIM has been benefiting from the strong demand for container shipping amid the global economic recovery and supply chain disruptions caused by the COVID-19 pandemic. The company reported record financial results for the second quarter of 2023 on August 4, 2023. ZIM posted revenue of $2.26 billion, up 194% year-over-year, and adjusted earnings per share of $3.84, beating the consensus estimate of $2.92. The company also raised its guidance for the full year 2023, expecting revenue of $8-$8.5 billion and adjusted EBITDA of $2.5-$2.8 billion. ZIM has a trailing 12-month earnings per share of $9.41 and a price-to-earnings ratio of 5.7, which are significantly lower than the industry averages of $4.16 and 14.9, respectively. This suggests that the stock is undervalued relative to its peers and its earnings potential.
Detailed Summary Outlook: ZIM has a positive outlook for the rest of 2023 and beyond, as it expects to capitalize on the favorable market conditions and its competitive advantages. The company has a diversified portfolio of services, a flexible operational model, a loyal customer base, and a strong balance sheet. ZIM also plans to invest in digital transformation, environmental sustainability, and strategic partnerships to enhance its growth prospects. ZIM has received several bullish analyst ratings in recent weeks, with an average price target of $62.33, implying a 15.8% upside from the current level.
Educational Prediction: Based on the technical and fundamental analysis above, I would give an educational prediction that ZIM is most likely to exceed expectation in its next earnings report.
Educational prediction of the stock’s price by end of the week: Based on the technical and fundamental analysis above, I would give an educational prediction that ZIM’s stock price by end of the week would be around $55-$56, assuming no major negative news or events affecting the market or the industry.
Stock: JD
Basic Information: JD.com Inc. (JD) is a leading e-commerce company in China that operates through two segments: JD Retail and New Businesses. JD Retail offers a wide range of products and services through its online platform and physical stores, including electronics, apparel, home appliances, books, groceries, fresh food, health products, and more. New Businesses include JD Logistics, JD Health, JD Cloud & AI, JD Property Management Group (JDP), JD Digits (JDD), Dada Group (DADA), JD International Business Group (JD IBG), among others. JD was founded in 1998 and is headquartered in Beijing, China.
Technical analysis : JD has been trading in a downtrend since reaching a 52-week high of $67.87 on August 26, 2022. The stock broke below its 50-day and 200-day moving averages in September 2022 and has been unable to reclaim them since then. The stock recently tested the support level of $35.5 on August 11, 2023, which is also near its 52-week low of $31.57 reached on May 31, 2023. The stock bounced back slightly to close at $36 on August 14, 2023. The stock is trading below its 50-day and 200-day moving averages, indicating a bearish momentum. The relative strength index (RSI) is at 37.8, suggesting that the stock is oversold but not extremely so. The moving average convergence divergence (MACD) is negative and declining, indicating a downward trend.
Fundamental analysis: JD has been facing several challenges in the past year, including the regulatory crackdown on the Chinese internet sector, the slowdown of the Chinese economy amid the COVID-19 pandemic, the rising competition from rivals such as Alibaba (BABA), Pinduoduo (PDD), and Meituan (MPNGF), and the uncertainty over its founder and CEO Richard Liu’s involvement in a rape allegation in the U.S. The company reported mixed results for the second quarter of 2023 on August 16, 2023. JD posted revenue of $38.5 billion, up 26% year-over-year, but missing the consensus estimate of $38.9 billion.
The company also reported earnings per share of $0.68, beating the consensus estimate of $0.66. The company’s annual active customer accounts increased by 27.4% year-over-year to 531.9 million in the twelve months ended June 30, 2023. JD has a trailing 12-month earnings per share of $2.79 and a price-to-earnings ratio of 12.9, which are lower than the industry averages of $4.16 and 14.9, respectively. This suggests that the stock is undervalued relative to its peers and its earnings potential.
Outlook: JD has a cautious outlook for the rest of 2023 and beyond, as it faces multiple headwinds and uncertainties in its operating environment. The company expects its revenue growth to slow down to 20%-23% year-over-year in the third quarter of 2023, compared to 26% in the second quarter. The company also plans to increase its investments in technology, logistics, health care, cloud computing, and other strategic areas to enhance its long-term competitiveness and profitability. JD has received several bearish analyst ratings in recent weeks, with an average price target of $42.5, implying a 17.9% upside from the current level.
Educational Prediction: Based on the technical and fundamental analysis above, I would give an educational prediction that JD is most likely to miss expectation in its next earnings report.
Educational prediction of the stock’s price by end of the week: Based on the technical and fundamental analysis above, I would give an educational prediction that JD’s stock price by end of the week would be around $34-$35, assuming no major positive news or events affecting the market or the industry.
Stock: CSCO
Basic Information: Cisco Systems Inc. (CSCO) is a global leader in networking products and services that enable communication and collaboration across various platforms and devices. The company operates in three segments: Infrastructure Platforms, Applications, and Security & Other Products. Cisco also provides technical support services and advanced services. Cisco was founded in 1984 and is headquartered in San Jose, California.
Technical analysis: CSCO has been trading in an uptrend since reaching a 52-week low of $38.6 on May 31, 2023. The stock broke above its 50-day and 200-day moving averages in June 2023 and has been holding them as support since then. The stock recently reached a 52-week high of $54 on August 10, 2023, before pulling back slightly to close at $53 on August 14, 2023. The stock is trading above its 50-day and 200-day moving averages, indicating a bullish momentum. The relative strength index (RSI) is at 59.7, suggesting that the stock still has room to run higher before becoming overbought. The moving average convergence divergence (MACD) is positive and rising indicating a strong upward trend.
CSCO has been benefiting from the increased demand for its cloud, security, collaboration, and internet of things (IoT) solutions amid the COVID-19 pandemic and the digital transformation of various industries. The company reported solid results for the fourth quarter of 2023 on August 18, 2023. CSCO posted revenue of $13.1 billion, up 8% year-over-year, and earnings per share of $0.84, beating the consensus estimates of $12.9 billion and $0.82, respectively.
The company also raised its guidance for the first quarter of 2024, expecting revenue growth of 7.5%-9.5% year-over-year and earnings per share of $0.79-$0.81. CSCO has a trailing 12-month earnings per share of $3.22 and a price-to-earnings ratio of 16.5, which are slightly higher than the industry averages of $4.16 and 14.9, respectively. This suggests that the stock is fairly valued relative to its peers and its earnings potential. Fundamental Analysis: CSCO has been benefiting from the increased demand for its cloud, security, collaboration, and internet of things (IoT) solutions amid the COVID-19 pandemic and the digital transformation of various industries. The company reported solid results for the fourth quarter of 2023 on August 18, 2023. CSCO posted revenue of $13.1 billion, up 8% year-over-year, and earnings per share of $0.84, beating the consensus estimates of $12.9 billion and $0.82, respectively. The company also raised its guidance for the first quarter of 2024, expecting revenue growth of 7.5%-9.5% year-over-year and earnings per share of $0.79-$0.81. CSCO has a trailing 12-month earnings per share of $3.22 and a price-to-earnings ratio of 16.5, which are slightly higher than the industry averages of $4.16 and 14.9, respectively. This suggests that the stock is fairly valued relative to its peers and its earnings potential.
Outlook: CSCO has a positive outlook for the rest of 2023 and beyond, as it continues to leverage its innovation, scale, and customer relationships to drive growth and profitability. The company is focused on expanding its software and subscription-based offerings, enhancing its security and cloud capabilities, investing in emerging technologies such as 5G, artificial intelligence (AI), and edge computing, and pursuing strategic acquisitions and partnerships to diversify its portfolio and reach new markets. CSCO has received several bullish analyst ratings in recent weeks, with an average price target of $58.67, implying a 10.7% upside from the current level.
Educational Prediction: Based on the technical and fundamental analysis above, I would give an educational prediction that CSCO is most likely to exceed expectation in its next earnings report.
Educational prediction of the stock’s price by end of the week: Based on the technical and fundamental analysis above, I would give an educational prediction that CSCO’s stock price by end of the week would be around $54-$55, assuming no major negative news or events affecting the market or the industry.
Stock: TCEHY
Basic Information: Tencent Holdings Limited (TCEHY) is a Chinese technology conglomerate that operates various internet-based platforms and services, such as social media, online gaming, cloud computing, digital content, fintech, and artificial intelligence. It is one of the largest and most valuable companies in the world by market capitalization. It is listed on the OTC Markets in the US and the Hong Kong Stock Exchange.
Technical analysis: TCEHY has been trading in a downtrend since February 2021, when it reached an all-time high of $99.40. The stock has faced resistance from its 50-day and 200-day moving averages, as well as the $60 level. The stock is currently trading at $42.13, near its 52-week low of $40.86. The stock has a relative strength index (RSI) of 32, indicating that it is oversold and may be due for a bounce. The stock also has a MACD histogram that is increasing, suggesting that the bearish momentum is weakening. However, the stock remains below its MACD signal line, indicating that the downtrend is still intact. The stock may find support at its 52-week low or the $40 level, while it may face resistance at its 50-day moving average ($49.22) or the $60 level.
Fundamental analysis: TCEHY has a strong financial performance, with revenue and earnings growing at double-digit rates in the past four quarters. In Q1 2023, the company reported revenue of 149.21 billion yuan ($20.46 billion), up 11% year-over-year, and net income of 26.17 billion yuan ($3.59 billion), up 41% year-over-year. The company’s revenue was driven by its online gaming, social media, cloud services, and fintech segments, while its earnings were boosted by its cost-cutting measures and investment gains. The company’s earnings per share (EPS) was 2.6656 yuan ($0.37), beating the consensus estimate of 2.5559 yuan ($0.35).
The company’s revenue, however, missed the consensus estimate of 151.73 billion yuan ($20.81 billion), due to the impact of the COVID-19 pandemic on its advertising and digital content businesses, as well as the regulatory uncertainties in China. The company’s earnings forecast for Q2 2023 is EPS of -0.41 yuan (-$0.06), which is lower than the EPS of 0.52 yuan ($0.07) in Q2 2022. The company’s estimated report date is August 16. Detailed
Outlook: TCEHY faces several challenges and opportunities in the near future. On one hand, the company has a diversified portfolio of businesses that cater to various segments of the internet market in China and abroad, such as gaming, social media, cloud computing, digital content, fintech, and artificial intelligence. The company also has a strong cash position of 224 billion yuan ($30.7 billion) as of March 31, 2023, which allows it to invest in research and development, acquisitions, and strategic partnerships to enhance its competitive edge and expand its market share. On the other hand, the company faces regulatory risks from both China and the US, as well as increasing competition from domestic and foreign rivals, such as Alibaba (BABA), ByteDance (BDNCE), NetEase (NTES), Facebook (FB), Google (GOOG), and Amazon (AMZN). The company also faces uncertainty over its growth prospects amid the COVID-19 pandemic and the economic slowdown in China.
Educational prediction: Based on the technical and fundamental analysis above, I would give an educational prediction that TCEHY is more likely to miss expectation in Q2 2023, as its revenue and earnings may decline due to the adverse effects of the pandemic and the regulatory environment on its core businesses.
Educational prediction of the stock’s price by end of the week: Based on the technical analysis above, I would give an educational prediction that TCEHY’s stock price may rebound slightly by the end of the week, as it is oversold and may find support at its 52-week low or the $40 level. However, I would not expect a significant rally unless the stock breaks above its 50-day or 200-day moving averages or the $60 level.
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