These 5 Homebuilders In Buy Ranges: Investing Action Plan

Here’s your Investing Action Plan: what you need to know as an investor for the coming week. The stock market turns rough as investors train a wary eye on the spread of the new omicron coronavirus variant. And while the earnings season rolls to a close, a handful of homebuilder stocks will be key to watch, trading near buy points as Toll Brothers (TOL) prepares to deliver results.


Stocks 2 Watch: 5 Stocks Near Buy Points

Dow Jones stock Chevron (CVX) is holding in a buy range as the integrated oil giant shows resilience in comparison to pure-play shale oil stocks, as oil prices fall back from seven-year highs.

Zim Integrated Shipping (ZIM) has a handle on its cup base.

Old Dominion Freight Lines (ODFL) is working on a three-weeks-tight buy point after a recent breakout.

Life Storage (LSI) was already in buy range from a prior base on Friday, when it produced another buy point in a three-weeks-tight chart pattern. Several storage REITs are faring well as defensive plays and with interest rates falling.

O’Reilly Automotive (ORLY) is just below a consolidation buy point.

Omicron’s Arrival

Markets will remain on watch for developing news in the coming week, after officials announced on Wednesday the first U.S. case of Covid caused by the omicron variant. The first individual reportedly returned to California’s San Francisco Bay Area from a trip to South Africa on Nov. 22, and tested positive on Nov. 29. On Thursday, health officials in New York confirmed five patients tested positive for the variant in the state.

In addition, news may come from Pfizer (PFE), Moderna (MRNA), Regeneron Pharmaceuticals (REGN) and Eli Lilly (LLY) as they work to determine the effectiveness of their vaccines and treatments in dealing with the new variant. Meanwhile, investors will also be monitoring the response in Washington, where President Joe Biden has already announced new test and masking travel requirements, as well as travel restrictions on persons coming from multiple countries.

Stock Market Targets: 5 Builders Near Buy Points

Luxury home manufacturer Toll Brothers will announce fiscal Q4 results after the market closes Tuesday. The homebuilder is expected to report a 60% increase in earnings to $2.48 per share with revenue up 14% to $2.9 billion. Shares are hovering just below a 68.98 buy point in a 29-week consolidation.

Housing stocks and the housing market soared during the pandemic amid record-low mortgage rates. Rates are on the rise but supply remains tight. Shares of Taylor Morrison Home (TMHC) are also just below a buy point, while D.R. Horton (DHI), NVR (NVR) and Meritage (MTH) are all in buy ranges. Meanwhile, Century Communities (CCS) is below an 83.30 entry in a 27-week base, and the Hoya Capital Housing ETF (HOMZ) is in a buy range, above a 42.58 buy point.

Inflation versus Covid

The stock market will be tuned to the November consumer price index, due Friday. It will be the final major non-omicron data point for Federal Reserve officials to consider at their Dec. 14-15 policy meeting. Fed chief Jerome Powell appeared set to speed up the tapering of asset purchases, and the CPI data is unlikely to alter that stance. November data may eclipse October’s 30-year-high 6.2% CPI inflation rate. Rent inflation is on the rise, and accounts for about 30% of the weight of the CPI. That’s a key reason inflation is broadening beyond cars and transportation, price categories more clearly affected by the pandemic.

Tech Earnings: Oracle, MongoDB, Broadcom, Ciena

Oracle (ORCL) reports quarterly results late Thursday. Consensus views look for modest gains: earnings of $1.11 a share, up 5%, on revenue of $10.2 billion, up 4%. Over the past several years, Oracle has transitioned to a subscription-based software model that taps the benefits of cloud computing. Oracle stock is in a flat base, with a 99.05 buy point. It has a year-to-date gain of more than 40%.

Upstart database rival MongoDB (MDB) reports earnings late Monday. The consensus looks for a loss of 38 cents a share, vs. a 31-cent loss in the year-ago period. The consensus on revenue is $205.3 million, up 36%. It has yet to show a profit.

Broadcom (AVGO), the largest fabless chipmaker (gauged by market capitalization) next to Nvidia (NVDA), reports fiscal fourth quarter results after the market closes on Thursday. Analysts expect earnings of $7.74 per share, up about 22%, FactSet says. The revenue target is almost $7.36 billion, up nearly 14%. Argus Research gives the stock a buy rating, and lifted its price target to 620, from 560, on Nov. 15. The note cited the buildup of Broadcom’s software business into a $5 billion revenue center, with clients using its tools in “modernizing, optimizing, and protecting the world’s most complex hybrid IT environments.” Broadcom shares are up about 26% YTD.

Ciena (CIEN) reports fiscal Q4 earnings before the stock market open on Thursday. Analysts expect the maker of fiber-optic network components to report EPS of 86 cents per share, up 43% from a year earlier. Revenue will grow 24% to $1.025 billion, analysts estimate. Ciena’s biggest customers are telecom service providers and internet data centers. The stock is in a buy range above a 61.19 buy point.

Retail Earnings: GameStop, RH, Academy Sports

RH (RH), the high-end home furnishings retailer formerly known as Restoration Hardware, reports its third-quarter results after the close on Wednesday. Analysts expect a 42% earnings gain and a 5% rise in sales. Shares are 28% below their August stock market high.

AutoZone (AZO) will report first-quarter earnings on Tuesday. The auto parts retailer’s earnings are seen racing 60.5% higher to $29.86, while sales are expected to rise 5.6% to $3.3 billion, as tight new-car inventories are pushing consumers to keep their vehicles longer and make more repairs. AutoZone shares are rebounding from support at their 10-week moving average.

GameStop (GME), the video-game retailer, reports third-quarter earnings on Wednesday. Wall Street expects the company to lose 52 cents per share, a cent narrower than a year ago, according to FactSet. Revenue was seen up 18% to $1.189 billion. One of the first of what are now called meme stocks, targeted by traders using social media sites to direct collective investing efforts, the stock has an 800% gain so far this year.

Academy Sports and Outdoors (ASO), a sporting goods retailer, reports third-quarter earnings on Friday. Wall Street expects the company to earn $1.05 per share, up 15%, on revenue of $1.48 billion, up 10%.

RV maker Thor Industries (THO) reports fiscal first-quarter earnings on Wednesday. Wall Street forecasts a 58% earnings jump and a 36% rise in revenue. Thor stock has fallen from pandemic-era highs — even as consumer demand has appeared to remain strong, and as industry peer Cavco Industries (CVCO), a maker of prefab homes, has rallied 82% on the stock market this year.


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