The performance of American stocks was excellent this past week thanks to recent Federal Reserve interest rate cuts and Chinese government stimulus. The Dow Jones rose three weeks in a row, hitting a new record of 42310.
The Nasdaq 100 index also soared, reaching $20,277 – its biggest swing since July 15 – while the S&P 500 index reached a new record of $5,763.
Investors are now focused on the third quarter earnings season which begins on October 15th. Before that happens, though, several well-known companies will release their results. Watch out for these notable companies.
NKE
Nike is one of the most well-known brands. Its stock price has plummeted by nearly 50% since its peak in 2022.
As sales and profit growth slowed, the company struggled. This slowdown is largely due to the turmoil in China. Online sales in China have also decreased, while the demand for shoes has softened.
The competition has increased in this industry, and companies such as Hoka, On Holding, have taken market share.
Nike recently appointed Elliot Hill as its new CEO. Hill is a long-time employee who replaced John Donahoe.
Nike’s financial results will make headlines next week. Analysts predict that sales for Nike will reach $11.65 Billion, which is a slight increase over the $12.9 Billion it generated last year. Analysts also predict its revenue will be $48,8 billion, down slightly from last year’s $51.3 billion.
CCL
Most cruise companies have reported strong bookings for the future.
Carnival has been the underperformer in this industry. The stock has barely changed hands this year, but it’s risen 35% over the past 12 months.
Royal Caribbean Cruises’s share price has increased by 41% by 2024, and 105% by the past 12 months. Norwegian Cruise Lines is up by 5% by the same time period and by 35%.
Carnival will publish its financial results at the end of September. Analysts predict that Carnival’s revenue will be $7.8 Billion, which is a huge increase over the $5.7 Billion it earned in the last quarter.
Analysts think that Carnival’s stock is undervalued, as its forward price to earnings ratio is 15, which compares with the S&P 500 multiple of 21, lower. Royal Caribbean’s multiple is 18, so Carnival could close the gap.
Constellation Brands | STZ
Constellation Brands, a leader in the industry of alcohol, is one of the largest companies. Constellation Brands owns top US brands like Modelo, Corona and Corona. Modelo gained market share over the last two years, as people began to boycott Bud Light.
Constellation Brands revenue grew from $8.3 Billion in 2019 to $9.96 Billion last year. The company’s profit for the past twelve months has also increased to $2.4 billion.
Constellation Brands’ annual revenue is expected to be $10.47 Billion. Analysts predict that Constellation Brands will have a revenue of $2.9 Billion. The earnings report next week will be the catalyst that propels a stock which has been stagnant this year.
TLRY
Tilray Brands’ stock has fallen by nearly 30% over the past 12 months, underperforming the market. Aurora Cannabis, Cronos, and Curaleaf are also among the cannabis companies that have seen their stock prices plummet.
Tilray is trying to diversify its business by increasing the amount of revenue it generates from beer. This now represents over 40%. The company recently bought several Molson Coors brands, a little over a year since it purchased eight AB InBev brands.
Its next quarterly earnings report, due on Friday, should provide a better picture of its beer business. Analysts predict that its revenues will be down to $220 million from $229 million last quarter.
Paychex will be the other company to publish its results in the next few days. Other top companies include McCormick Foods, Cal-Maine Foods and Levi Strauss.
The post Stocks To Watch Next Week: Tilray Nike Carnival Constellation Brands Tilray Nike Carnival Constellation Brands Stocks May be updated as new information is released
