The American stock market recovered strongly this week and erased most of last week’s losses. Dow Jones surged almost 1%, while S&P 500, Nasdaq 100 and Nasdaq 100 indices soared over 1,8% and 2,58% respectively.
US Consumer Inflation numbers were the key driver for the equities market. They revealed that headline Consumer inflation had continued to decline in August. The headline CPI fell to 2,5%, the lowest level since 2020.
Data from a week earlier showed the August unemployment rate was still above 4%, indicating that this situation was worrying.
Next week, the Federal Reserve will likely announce its first rate reduction in many years. Some companies will be releasing their financial results on the stock exchange.
FDS
FactSet Research Systems, a leader in the industry of financial services, is an innovative company. The company provides solutions for companies such as investment banks and hedge fund, so it’s not considered a mainstream business.
This company competes against companies such as Bloomberg, London Stock Exchange (which owns Refinitiv), S&P Global and Morningstar Direct. It is also a favourite among income investors, as it has raised dividends continuously for the past 24 years. This means that soon it will be a dividend aristocrat.
FactSet’s revenue has increased from $1.4billion in 2019 to more than $2.08billion last year. The stock has barely changed in the past 12 months, which is a sign that the company’s growth may be slowing.
FactSet is expected to publish their results on Thursday. Analysts expect that the revenue will have increased by 2.10 % to $546 millions.
FDX
FedEx has had major problems in recent years. It is one of the largest players in the industry. The company’s revenues peaked at $90 billion by 2022, as the global economy grew.
FedEx also releases its financial results next Thursday. The results of the FedEx company will be more informative, as there are still signs of a global slowdown. The company’s performance is often viewed as a barometer of global economic conditions.
FedEx is expected to have revenues of $22 billion in 2023, which represents a slight increase over the $21.68 Billion it earned in that same time period. Analysts expect its revenues to rise 2.50% for the entire year. This will bring it up to $89.86 Billion.
Lennar | LEN
Investors closely monitor Lennar because the company is one of the largest homebuilders in America. It is also a reliable indicator for the health of this sector. The stock of Lennar has increased by more than 53% over the last year and over 271% over the past five years, as the home price continues to rise.
Lennar has seen its revenue grow. The company’s revenue grew from $22,2 billion to $34,2 billion over the past financial year. The company’s profits are now around $4 billion.
Analysts anticipate that the quarterly revenue, which is scheduled to be announced on Thursday, will increase by 8.4%, reaching $9.16 Billion. Analysts expect its annual revenue to be $35.32 Billion, which is a 3 % increase over last year. After publishing positive financial results in early June, its stock price has increased.
Lennar’s price-to earnings ratio is 12.3, which is lower than the median for its sector of 16. The PE multiple, however, is above the average five-year figure of 8.76.
GIS
General Mills, with its market capitalization of more than $40 billion dollars, is among the largest food corporations in the United States. It manufactures cereals, snack foods, baked goods, dairy, frozen food, and baking products.
General Mills’ stock price has increased by more than 12% since its low point in 2023. The stock is still about 16 % below the high point of 2023.
Its main challenge has been the decline in demand for cereal products in recent years. In 2022, the company’s revenue was over $20 billion. By 2019, it had dropped to $19.5 billion. Profits have also remained relatively stable.
Its financial results scheduled to be released on Wednesday will give more information about the company’s business. Analysts anticipate that the company’s revenue will reach $4.9 billion, and its earnings per share (EPS) to rise from $1.09 up to $1.05.
VFS
VinFast’s stock has fallen sharply as worries about the company continue. VinFast’s stock price has fallen by 76% over the past 12 months, and 52% in this year. Its market capitalization is now over $9.8 Billion.
Analysts predict that its quarterly revenue will be $460 millions, while the loss per share has risen from 19 to 21 cents. The stock could continue to fall as headwinds increase.
The post, Top Stocks to Watch: FedEx Lennar FactSet General Mills VinFast, may change as new information is revealed.
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