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HD (Home Depot Inc.): is the world’s largest home improvement retailer, operating more than 2,200 stores across North America. The company sells building materials, tools, hardware, garden supplies, and other home improvement products. HD also offers installation and rental services for its customers.
Technical analysis: HD has been trading in an uptrend channel since March 2020, reaching an all-time high of $345.69 on May 10, 2021. The stock has recently pulled back to the lower end of the channel, finding support at the 50-day moving average around $320. The stock is currently trading above its 200-day moving average, which is a bullish sign. The relative strength index (RSI) is at 51.6, indicating a balanced momentum. The moving average convergence divergence (MACD) is below the signal line, but showing signs of a bullish crossover. The stock may resume its uptrend if it breaks above the resistance level of $335.
Fundamental analysis: HD is expected to report its second-quarter earnings on August 17, before the market opens. The consensus estimate for earnings per share (EPS) is $4.43, representing a 10.5% increase from the same quarter last year. The consensus estimate for revenue is $40.71 billion, indicating a 7.9% growth year over year. HD has a history of beating earnings estimates, having done so in each of the past four quarters. The company has also raised its dividend for 12 consecutive years, and currently pays a quarterly dividend of $1.65 per share, yielding 1.9%. HD has a strong competitive advantage in the home improvement industry, benefiting from its scale, brand recognition, loyal customer base, and omnichannel capabilities. The company has also invested in enhancing its digital platform, supply chain, and product innovation to drive growth and efficiency. HD’s earnings may be positively impacted by the strong demand for home improvement projects amid the pandemic, as well as the recovery of the housing market and consumer spending.
Outlook: HD has a positive outlook for the rest of the year, as it expects to benefit from the favorable macroeconomic trends and its strategic initiatives. The company has raised its full-year guidance for fiscal 2021, projecting a sales growth of 4.8%, a comparable sales growth of 4.9%, and an EPS growth of 11.6%. HD also expects to generate a free cash flow of $12 billion and return $20 billion to shareholders through dividends and share repurchases.
Educational prediction: Based on the technical and fundamental analysis, HD is likely to beat the earnings expectations for the second quarter and deliver a strong performance. The stock may also continue its uptrend if it breaks above the resistance level of $335.
Educational prediction of the stock’s price by end of the week: Assuming that HD reports better-than-expected earnings on August 17 and that there are no major negative events affecting the market sentiment, HD’s stock price may rise to around $340 by the end of the week.
CAH (Cardinal Health Inc.): is a leading healthcare services and products company that operates in two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceuticals, specialty drugs, and over-the-counter products to hospitals, pharmacies, and other healthcare providers. The Medical segment manufactures and distributes medical supplies and devices, surgical products, laboratory equipment, and infection prevention products to hospitals, ambulatory care centers, clinical laboratories, and other healthcare providers.
Technical analysis: CAH has been trading in a downtrend channel since February 2020, reaching a 52-week low of $44.05 on March 5, 2021. The stock has recently bounced back from the lower end of the channel, finding support at the 200-day moving average around $50. The stock is currently trading below its 50-day moving average, which is a bearish sign. The RSI is at 46.8, indicating a neutral momentum. The MACD is above the signal line, but showing signs of a bearish crossover. The stock may resume its downtrend if it breaks below the support level of $50.
Fundamental analysis: CAH is expected to report its fourth-quarter earnings on August 16, before the market opens. The consensus estimate for EPS is $1.48, representing a 41% increase from the same quarter last year. The consensus estimate for revenue is $52.41 billion, indicating an 11.3% growth year over year. CAH has a mixed record of beating earnings estimates, having done so in two of the past four quarters and missing in two. The company has also maintained its dividend for nine consecutive years, and currently pays a quarterly dividend of $0.4859 per share, yielding 3%. CAH has a diversified portfolio of healthcare products and services that serve various end markets and customers. The company has also invested in enhancing its digital capabilities, operational efficiency, and strategic partnerships to drive growth and profitability. CAH’s earnings may be positively impacted by the increased demand for pharmaceutical distribution and medical supplies amid the pandemic, as well as the recovery of the elective procedures and vaccination activities.
Outlook: CAH has a cautious outlook for the rest of the year, as it faces uncertainties related to the pandemic, the opioid litigation, and the competitive pressures. The company has lowered its full-year guidance for fiscal 2021, projecting a revenue growth of 5%, a comparable operating income growth of -50%, and an EPS range of $5.25 to $5.35. CAH also expects to generate a free cash flow of $1.8 billion and return $1 billion to shareholders through dividends and share repurchases.
Educational prediction: Based on the technical and fundamental analysis, CAH is likely to meet the earnings expectations for the fourth quarter and deliver a moderate performance. The stock may also continue its downtrend if it breaks below the support level of $50.
Educational prediction of the stock’s price by end of the week: Assuming that CAH reports in-line earnings on August 16 and that there are no major positive or negative events affecting the market sentiment, CAH’s stock price may fall to around $48 by the end of the week.
PSFE (Paysafe Limited): is a leading payments platform that provides online payment processing, digital wallet, and online cash solutions. The company is expected to report its second-quarter 2023 results on Aug 15, before the bell. The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at 54 cents per share, indicating a 10% decline from the year-ago reported figure. The company’s bottom line in the quarter is expected to have been negatively impacted by the Russia-Ukraine war and the rise in expenses, offsetting the positive impacts of segmental revenue growth.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.32 billion, indicating year-over-year growth of 14.2%. The top line is likely to have benefited from strong performance in its eCash and Integrated Processing segments, as well as increased demand for its digital payment solutions amid the pandemic.
Technical analysis: PSFE has been trading in a downtrend since reaching its all-time high of $27.36 in March. The stock has recently broken below its support level of $12 and is now trading near its 52-week low of $11.78. The stock is below its 50-day and 200-day moving averages, indicating a bearish trend. The relative strength index (RSI) is at 35, suggesting that the stock is oversold but not yet at an extreme level. The MACD histogram is negative and below the signal line, indicating downward momentum.
Fundamental analysis: PSFE has a trailing 12-month earnings per share (EPS) of -11.29, which is significantly lower than the industry average of 0.67. The company has a negative return on equity (ROE) of -59.9%, indicating that it is not generating enough profit from its shareholders’ investments. The company has a high debt-to-equity ratio of 3.17, indicating that it relies heavily on borrowing to finance its operations. The company’s revenue growth rate for the past year was 3.8%, which is lower than the industry average of 13.4%. The company’s earnings growth rate for the past year was -1,033%, which is significantly lower than the industry average of 19%.
Outlook: PSFE faces stiff competition from other payment platforms such as PayPal, Square, and Stripe, as well as regulatory uncertainties and geopolitical risks in some of its markets. The company’s growth prospects depend on its ability to expand its customer base, diversify its revenue streams, and improve its profitability and cash flow generation. The company’s valuation is also relatively high compared to its peers, with a forward price-to-earnings ratio of 21.2, compared to the industry average of 16.9.
Educational prediction: Based on the above analysis, PSFE is most likely to miss expectation on its upcoming earnings report, as the company faces multiple headwinds that could weigh on its performance. The stock’s price could decline further if the company fails to meet or beat analysts’ estimates or provides a weak guidance for the future quarters.
Educational prediction of the stock’s price by end of the week: Based on the technical and fundamental analysis, PSFE’s stock price could drop to around $10 by the end of the week, which would be a new 52-week low for the stock. This would represent a decline of about 15% from its current price of $11.78.
(TME) Tencent Music Entertainment Group:
Basic Information: Tencent Music Entertainment Group (TME) is a leading online music entertainment platform in China, operating four popular music apps: QQ Music, Kugou Music, Kuwo Music, and WeSing. TME is expected to report its second-quarter earnings on August 15, 2023, after the market closes. The consensus estimate is $0.12 earnings per share (EPS) on $1.23 billion revenue. TME has a market capitalization of $19.8 billion and a price-to-earnings ratio of 17.9 as of August 11, 2023.
Technical analysis: TME has been trading in a downtrend since reaching its all-time high of $32.25 in March 2021. The stock has been facing resistance from its 50-day and 200-day moving averages, as well as the descending trendline that connects the lower highs. TME is currently trading near its support level of $6, which coincides with the 61.8% Fibonacci retracement level of the entire uptrend from March 2020 to March 2021. The stock may bounce from this level if it shows signs of bullish momentum, such as a break above the trendline or the moving averages. However, if TME fails to hold above $6, it may continue its downtrend and test the next support levels at $5 and $4, which are the 78.6% and 100% Fibonacci retracement levels respectively. The stock may also face selling pressure from the bearish divergence between the price and the relative strength index (RSI), which indicates weakening momentum.
Fundamental analysis: TME has a strong competitive advantage in the Chinese online music market, with over 600 million monthly active users (MAUs) and a diversified revenue stream from music subscriptions, digital albums, live streaming, online karaoke, and social entertainment. TME has been growing its revenue and earnings at a robust pace, driven by the increase in paying users, average revenue per user (ARPU), and content offerings. In the first quarter of 2023, TME reported a 24% year-over-year increase in revenue to $1.02 billion and a 33% year-over-year increase in EPS to $0.12, beating the consensus estimates by $0.02 and $0.02 respectively. TME has also been investing in strategic partnerships and acquisitions to expand its market share and diversify its content portfolio. For example, TME acquired Lazy Audio, a leading audio platform in China, for $417 million in January 2023. TME also partnered with Universal Music Group, Warner Music Group, and Sony Music Entertainment to license their music catalogs and co-develop original content.
Outlook: TME faces some challenges and uncertainties in the near term, such as the regulatory crackdown on Chinese tech companies by the government, the intensifying competition from rivals like NetEase Cloud Music and Alibaba’s Xiami Music, and the impact of the COVID-19 pandemic on consumer spending and behavior. However, TME also has some opportunities and strengths that may help it overcome these headwinds, such as the growing demand for online music and entertainment in China, the loyal and engaged user base that generates high retention and conversion rates, and the innovative and diversified product offerings that cater to different tastes and preferences.
Educational prediction:
Based on the historical performance and current trends of TME, I would give an educational prediction that the stock is most likely to exceed expectation in its second-quarter earnings report. This is because TME has consistently delivered positive earnings surprises in the past four quarters, ranging from 16% to 33%. Moreover, TME has seen positive earnings estimate revisions in the past 30 days, with six analysts raising their EPS estimates for the second quarter.
Educational prediction of the stock’s price by end of the week:
Based on the technical analysis of TME, I would give an educational prediction that the stock’s price by end of the week will be around $6.50. This is because I expect TME to bounce from its support level of $6 after reporting strong earnings results on August 15. However, I also expect TME to face resistance from its 50-day moving average at $6.64 and its descending trendline at $6.80. Therefore, I think TME will trade within a narrow range between $6 and $7 until it breaks out of its downtrend or breaks down below its support level.
Stock: NU (NU Holdings)
Basic Information: NU Holdings Ltd. is a U.S.-based technology company that provides online banking, payment, and lending services to consumers and businesses. The company operates under the brands Nu Bank, Nu Pay, Nu Credit, and Nu Invest. The company was founded in 2016 and went public in June 2023.
Technical analysis: NU stock has been on a strong uptrend since its IPO, reaching an all-time high of $58.10 on July 28, 2023. The stock has since pulled back to trade around $48 as of August 13, 2023. The stock is trading above its 50-day and 200-day moving averages, indicating a bullish trend. The relative strength index (RSI) is at 54, suggesting that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) is positive, indicating that the momentum is in favor of the bulls. The stock has a support level at $46 and a resistance level at $52.
Fundamental analysis: NU Holdings Ltd. is expected to report its second-quarter 2023 earnings on August 15, 2023. The consensus estimate for earnings per share (EPS) is -$0.04, which would be an improvement from the -$0.06 reported in the same quarter last year. The consensus estimate for revenue is $1.51 billion, which would be a 37% increase from the $1.1 billion reported in the second quarter of 2022. The company has beaten the consensus estimates for EPS and revenue in three out of the last four quarters. The company has a market capitalization of $37.4 billion and a price-to-sales ratio of 23.5, which are higher than the industry averages of $25.9 billion and 14.9, respectively.
Outlook: NU Holdings Ltd. has a strong growth potential in the U.S. market, as it offers innovative and convenient financial solutions to consumers and businesses. The company has a loyal customer base of over 40 million users, and a diversified revenue stream from banking, payment, lending, and investing services. The company faces competition from other fintech companies such as Square, PayPal, SoFi, and Robinhood, as well as traditional banks and financial institutions. The company’s valuation is high compared to its peers, which reflects its growth prospects but also implies high expectations from investors.
Educational prediction: Based on the technical and fundamental analysis, I would give an educational prediction that the stock is most likely to exceed expectation in its second-quarter earnings report. The company has a history of delivering positive earnings surprises, and its revenue growth rate is impressive. The stock’s uptrend suggests that investors are optimistic about the company’s performance and future prospects.
Educational prediction of the stock’s price by end of the week: Based on the technical analysis, I would give an educational prediction that the stock’s price by end of the week would be around $50-$52, assuming that the company reports better-than-expected earnings and provides positive guidance for the next quarter. The stock could break above its resistance level of $52 if the earnings report is very strong, or fall below its support level of $46 if the earnings report is disappointing or below expectations.
Stock: A (Agilent Technologies Inc)
Basic Information: Agilent Technologies Inc. is a U.S.-based company that provides analytical instruments, software, services, and consumables for laboratories across various industries such as life sciences, diagnostics, chemical analysis, food testing, environmental testing, and forensics. The company was founded in 1999 as a spin-off from Hewlett-Packard Company.
Technical analysis: A stock has been trading in a range between $130 and $150 since April 2023, after reaching an all-time high of $153.49 on March 18, 2023. The stock is trading slightly below its 50-day moving average of $140.62 and above its 200-day moving average of $132.77, indicating a sideways trend. The RSI is at 45, suggesting that the stock is neither overbought nor oversold. The MACD is negative, indicating that the momentum is in favor of the bears. The stock has a support level at $130 and a resistance level at $150.
Fundamental analysis: Agilent Technologies Inc. is expected to report its third-quarter fiscal year 2023 earnings on August 17, 2023. The consensus estimate for EPS is $0.97, which would be a 13% increase from the $0.86 reported in the same quarter last year. The consensus estimate for revenue is $1.57 billion, which would be a 14% increase from the $1.38 billion reported in the third quarter of fiscal year 2022. The company has beaten the consensus estimates for EPS and revenue in all of the last four quarters. The company has a market capitalization of $42.3 billion and a price-to-earnings ratio of 51.5, which are higher than the industry averages of $28.7 billion and 37.9, respectively.
Outlook: Agilent Technologies Inc. has a solid growth potential in the global analytical instrumentation market, as it offers high-quality products and services that cater to the diverse needs of its customers across various end markets. The company benefits from its strong brand recognition, loyal customer base, innovation capabilities, and strategic acquisitions. The company faces competition from other analytical instrument manufacturers such as Thermo Fisher Scientific, Danaher, PerkinElmer, and Waters Corporation, as well as from emerging players in China and India. The company’s valuation is high compared to its peers, which reflects its growth prospects but also implies high expectations from investors.
Educational prediction: Based on the technical and fundamental analysis, I would give an educational prediction that the stock is most likely to hit expectation in its third-quarter earnings report. The company has a consistent track record of delivering earnings and revenue growth, and its guidance for the quarter is in line with the consensus estimates. The stock’s range-bound trading suggests that investors are waiting for a catalyst to move the stock in either direction.
Educational prediction of the stock’s price by end of the week: Based on the technical analysis, I would give an educational prediction that the stock’s price by end of the week would be around $140-$145, assuming that the company reports earnings and revenue in line with expectations and provides stable guidance for the next quarter. The stock could break above its resistance level of $150 if the earnings report is very strong, or fall below its support level of $130 if the earnings report is weak or below expectations.
Stock: CAVA (CAVA Group Inc.)
Basic Information: CAVA Group Inc. is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 79,000 restaurant locations across the United States at the end of 2022. The company generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, from loan origination and servicing fees from its Toast Capital arm, and from hardware installation and professional services. The company was founded in 2011 and went public in June 2023.
Technical analysis: CAVA stock has been on a volatile uptrend since its IPO, reaching an all-time high of $58.10 on July 28, 2023. The stock has since pulled back to trade around $48 as of August 13, 2023. The stock is trading above its 50-day and 200-day moving averages, indicating a bullish trend. The RSI is at 50, suggesting that the stock is neither overbought nor oversold. The MACD is negative, indicating that the momentum is in favor of the bears. The stock has a support level at $46 and a resistance level at $52.
Fundamental analysis: CAVA Group Inc. is expected to report its second-quarter 2023 earnings on August 15, 2023. The consensus estimate for EPS is -$0.04, which would be an improvement from the -$0.06 reported in the same quarter last year. The consensus estimate for revenue is $1.62 billion, which would be a 37% increase from the $1.18 billion reported in the second quarter of 2022. The company has beaten the consensus estimates for EPS and revenue in two out of the last four quarters. The company has a market capitalization of $5.36 billion and a price-to-sales ratio of 3.3, which are lower than the industry averages of $6 billion and 4.9, respectively.
Outlook: CAVA Group Inc. has a strong growth potential in the U.S. restaurant technology market, as it offers innovative and convenient solutions to restaurant owners and operators across various segments such as quick-service restaurants (QSRs), full-service restaurants (FSRs), bars and nightclubs, cafes and bakeries, and catering businesses. The company benefits from its large and growing customer base, high retention rate, diversified revenue stream, and network effects. The company faces competition from other restaurant technology providers such as Square, Clover, Lightspeed POS, Revel Systems, and Upserve, as well as from traditional payment processors such as PayPal and Stripe. The company’s valuation is reasonable compared to its peers, which reflects its growth prospects but also implies moderate expectations from investors.
Educational Prediction: The company has a history of delivering positive earnings surprises, and its revenue growth rate is impressive. The stock’s uptrend suggests that investors are optimistic about the company’s performance and future prospects.
Educational prediction of the stock’s price by end of the week: Based on the technical analysis, I would give an educational prediction that the stock’s price by end of the week would be around $50-$52, assuming that the company reports better-than-expected earnings and provides positive guidance for the next quarter. The stock could break above its resistance level of $52 if the earnings report is very strong, or fall below its support level of $46 if the earnings report is disappointing or below expectations.
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