Here's your Investing Action Plan for Friday: what you need to know as an investor for the coming day.
X Three highly rated companies will lead the earnings charge: IPG Photonics (IPGP), Deere (DE) and VF Corp. (VFC). Meanwhile, a host of food and beverage companies will report as well, including Campbell Soup (CPB), Kraft Heinz (KHC), J.M. Smucker (SJM) and Coca-Cola (KO).
IPG Photonics
The industrial laser maker reports Q4 results before the market opens.
Estimates: EPS to climb 24.7% to $1.72 as revenue grows 24% to $347 million, according to Zack's Investment Research.
Stock: Shares closed up 2.6% at 259.07 on the stock market today, marking a fifth straight gain. The stock broke out from a cup base last month but sold off with the rest of the market last week and dove into loss-reducing sell territory. Still, it carries a Composite Rating of 99.
In January, Needham analysts raised their price target on IPG Photonics to 280 from 230, citing synchronized growth across the world's major economies. China, in particular, has been a growth driver for the company, it added.
Deere
The maker of farm and construction equipment reports fiscal Q1 earnings early.
Estimates: EPS to surge 90% to $1.16 with revenue climbing 36% to $6.4 billion.
Stock: Shares rallied 2.2% to finish at 166.81, rising further above their 50-day average as well as buying territory.
The rebound in commodities has boosted Deere, which is also benefiting from the strong global economy. Meanwhile, homebuilders remain confident despite a jump in interest rates.
Last month, construction gear giant Caterpillar (CAT) crushed quarterly estimates again, with sales growth accelerating across markets.
VF Corp.
The maker of North Face, Vans and Wrangler brands apparel reports Q4 financials early.
Estimates: EPS to grow 5% to $1.02 with revenue up 10% to $3.66 billion.
Stock: Shares edged up 0.3% to a fresh high of 83.94. Unlike IPG Photonics and Deere, VF Corp. has more than recovered from last week's market dive.
On Monday, analysts at Stifel Nicolaus upgraded VF to buy and boosted their price target to 91 from 78, citing healthy inventories, strong consumer sentiment and spending power, as well as more favorable foreign exchange rates.
IBD'S TAKE: Buying or holding a stock can be risky heading into an earnings report. Here's an earnings options strategy that can help you cash in on post-earnings stock gains, while minimizing the risk from a weak quarter.
Other Earnings
The companies behind a range of packaged foods and drinks come out Friday, following strong results from snack and beverage giant PepsiCo (PEP) earlier this week. Higher ingredient prices and shifting consumer tastes toward healthier fare are likely to be recurrent themes.
- Campbell Soup: EPS down 11% to 81 cents; revenue flat at $2.17 billion.
- Kraft Heinz: EPS up 5.5% to 96 cents; revenue up 0.6% to $6.9 billion.
- Smucker: EPS up 8% to $2.16; revenue up 0.5% to $1.89 billion.
- Coca-Cola: EPS up 2.7% to 38 cents; revenue down 21.7% to $7.365 billion.
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