This week will be a bit slow on the earnings front. For those addicts out there who just can't stay away from the markets, here are four names worth watching.
So far, FedEx (FDX) hasn't been a performer this year. The stock is lagging the S&P 500, and FDX has a lot of exposure to the effects of the ongoing trade war. After beating estimates back in June, the shipping giant did warn that the effects of trade disputes, coupled with its fallout with Amazon (AMZN) would have negative implications for fiscal 2020. Current year estimates of $14.70 would mark a year-over-year decline in full year earnings. It's a tough stock to gauge, as it's not overly expensive, and the potential of e-commerce shipping for names other than Amazon remains strong. It'll be interesting to see what happens next week.
Over the last 20 years, Cracker Barrel (CBRL) shares have absolutely crushed the S&P 500. The restaurant chain has five full years of consecutive earnings growth. In the fiscal third quarter, Cracker Barrel reported continued strength in terms of revenues and earnings, but comp sales were a bit murky. Traffic decreased, and retail comp sales were down. Overall, the restaurant chain still seems to be one of the stronger performers, and I'll be looking to see whether or not the comparables were more favorable in the fiscal fourth quarter.
Chewy (CHWY) has had a tough few years in terms of trying to turn a profit. The online seller of pet foods and supplies, Chewy's stock jumped in July after reporting its first quarterly earnings since going public. Despite narrowing the gap, Chewy still reported losses. This is a prime example of speculative investing at work. The company's revenue streams are growing swiftly, and based on stock trends, investors seem confident that the pet supply company is going to find its way.
Like quite a few food companies, General Mills (GIS) has had some relative stagnation over the past few years. Revenues peaked back in fiscal 2015 at $17.63 billion, and it's been a battle to regain that level ever since. Net income has had an equally volatile ride, annually, with shifts between growth and declines. This year, we've seen a shift to the bull side with GIS stock. Bolstered by revenues from the acquisition of Blue Buffalo, General Mills put together a few earnings beats to close out the fiscal year. Looking ahead, the big thing for the company will be organic growth. While acquisitions can certainly help the bottom line, the company also needs to regain momentum in its own core business if the rally will continue.
Over the last six months, GIS has outpaced the S&P 500. Good news on the sales front could keep that trend going into the second half.