Home improvement retailers Lowe’s Companies Inc (NYSE:LOW) will report first-quarter financial results before the market open on Tuesday.
Here are the earnings estimates, what analysts are saying and key items to watch.
Earnings Estimates: Analysts expect Lowe’s to report first-quarter revenue of $21.10 billion, according to data from Benzinga Pro.
The revenue estimate is lower than the $22.35 billion reported in last year’s first quarter by the home improvement retailer. Lowe’s has beat revenue estimates in five of the last 10 quarters, with five quarters coming in below analysts’ estimates.
Analysts expect Lowe’s to report first-quarter earnings per share of $2.93 compared to $3.67 reported in last year’s first quarter.
What Analysts Are Saying: While there could be many items analysts are watching in Lowe’s first quarter report, JPMorgan analyst Christopher Horvers calls out the upcoming spring season.
The analyst sees increasing demand for outdoor patio items, which could benefit Lowe’s. Horvers said Lowe’s has more exposure to seasonal categories compared to rival Home Depot (NYSE:HD).
“DIY is 75% of their business. A big chunk of that is driven off these seasonal categories,” Horvers said.
Key Items to Watch: One of the key items to watch could be foot traffic. A recent third-party report from Placer.ai showed visits to Lowe’s down 4% year-over-year in the first quarter. Home Depot recently reported visits were down 1.1% in the first quarter.
If this data is correct, it could point to worse results for traffic for Lowe’s versus its main peer company.
Home Depot reported first-quarter revenue of $36.42 billion, down 2.3% year-over-year. The revenue total missed an estimate of $36.67 billion from analysts. Home Depot’s first quarter earnings per share of $3.63 beat estimates from analysts of $3.59.
Another item to watch in Lowe’s report and prepared remarks could be a partnership with delivery company DoorDash (NASDAQ:DASH). In April, the retailer announced a partnership with DoorDash to provide delivery from over 1,700 stores in the U.S.
“Just in time for spring, consumers can shop for everything from gardening tools to spring cleaning essentials,” DoorDash VP of New Verticals Fuad Hannon said.
The partnership marked the first in the home improvement category for DoorDash.
Lowe’s previously guided for fiscal 2024 sales to be in a range of $84 billion to $85 billion. The company reported sales of $86.4 billion in last year’s full fiscal year. An update on guidance for the full year or for the second quarter is another item to watch.
LOW Price Action: Lowe’s shares trade at $230.50 versus a 52-week trading range of $181.85 to $262.49. The stock is up 11.3% over the last year and up 3.6% year-to-date in 2024.
Lowe’s stock is beating Home Depot on a year-to-date basis (-1.9%), but trails the home improvement retailer’s one-year return of 16.3%.
Both home improvement retailers trail the one year and year-to-date returns of the S&P 500 of 27.9% and 11.8%, respectively.
Pinduoduo Inc. (NASDAQ:PDD) has demonstrated notable stock performance, reflecting strong market interest and investor confidence. The company is set to report Q1 earnings on Wednesday. Wall Street expects PDD to post $1.43 in EPS and $10.6 billion in revenue, as it reports before market hours.
At the time of publication on Monday, the stock was up 1.2% to $147.96. Over the past year, PDD stock has surged by 134%, and is up 1.6% in 2024. This performance underscores the stock’s resilience and potential for continued growth.
Several Bullish Indicators On PDD Stock Charts
From a technical analysis perspective, PDD is exhibiting several bullish indicators.
The stock is currently trading above its key moving averages, which signals sustained upward momentum. The share price of PDD is above the 8-day simple moving average (SMA) which indicates a bullish signal, reflecting short-term bullish sentiment.
The 20-day Simple Moving Average (SMA) suggests ongoing bullish momentum, with the stock price well above this short-term average. The 50-day SMA indicates a strong medium-term bullish trend, as the stock price remains higher than this average as well. Additionally, the 200-day SMA points to a prevailing long-term bullish sentiment, further reinforcing the overall positive outlook for the stock.
The Moving Average Convergence Divergence (MACD) indicator, standing at 5.89, suggests a strong bullish signal, indicating that the momentum is in favor of PDD stock.
However, the Relative Strength Index (RSI) at 71.89 suggests that the stock is currently overbought, which could signal potential short-term volatility or a pullback.
The Bollinger Bands analysis also supports a bullish outlook as well. The Bollinger Bands range between $121.31 and $149.82. With the current price well within these bands, and in fact trading in the upper (bullish) band, the stock is reflecting positive investor sentiment.
Analyst Bullish On Temu’s Potential, David Tepper Loading Up PDD Stock
Recent news has provided additional support for PDD’s bullish technical indicators.
UBS has raised its price target for Pinduoduo shares from $217 to $248, maintaining a Buy rating. This optimism is driven by the market potential of Temu, Pinduoduo’s overseas platform targeting low-income consumers. UBS believes that the market may be underestimating Temu’s geopolitical risks and its potential for significant market expansion, which could result in higher margins due to its managed e-commerce model.
Moreover, American billionaire hedge fund manager David Tepper has shown confidence in PDD, with Appaloosa Management purchasing 1.325 million shares in the first quarter of 2024, now holding 3.61% of the portfolio. This bullish stance from a prominent investor further boosts market confidence in PDD.
Pinduoduo stock exhibits strong bullish technical indicators supported by favorable market news and analyst upgrades. While the RSI suggests caution due to overbought conditions, the overall technical landscape and positive news flow position PDD as a compelling stock for investors.
Target Corp (NYSE:TGT) shares are trading lower. The company on Monday announced that it’s lowering prices on frequently shopped items just days ahead of earnings. Here’s what you need to know.
What To Know: Target said it will lower everyday regular prices on approximately 5,000 frequently shopped products. The retailer noted that it already reduced prices on about 1,500 items and plans to cut prices across thousands of other products over the course of the summer.
Price cuts will impact several everyday items like milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food and more.
“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” said Rick Gomez, executive vice president and chief food, essentials and beauty officer at Target.
“Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs.”
The news comes as Target gears up to report earnings this week. Target is due to report its first-quarter financial results before the market opens on Wednesday. The retailer is expected to report earnings of $2.02 per share and revenue of $24.51 billion, according to estimates from Benzinga Pro.
Last quarter, Target beat analyst estimates on the top and bottom lines, turning in earnings of $2.98 per share versus estimates of $2.41 per share and revenue of $31.92 billion versus estimates of $31.83 billion.
Target guided for first-quarter adjusted earnings of $1.70 to $2.10 per share and said it expects comparable sales growth to be between 3% and 5%.
“Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time. We’ll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond,” CEO Brian Cornell said in March.
Amid the hype surrounding Tesla, Inc. (NASDAQ:TSLA) investor and fund manager Gary Black on Sunday delved into whether the electric vehicle maker’s full self-driving technology is worth all the hype surrounding it.
What Happened: Black is convinced about the technology’s potential. “No one disagrees that fully autonomous vehicles are the future of the auto industry,” the fund manager said in a post on X, formerly Twitter. He, however, doesn’t think FSD is a zero-sum game.
“The debate has always been whether there will be 1 automaker ( $tsla) that solves general autonomy, or 10 or 20,” Black said. He noted that China’s Baidu, Inc. (NASDAQ:BIDU) already has 500 robotaxis in service, with 50% of its fleet capable of being driven autonomously.
Baidu’s fleet has provided 6 million rides to paying customers, he noted.
“In the history of the auto industry, every successful technological innovation has been quickly copied by everyone else. To say ‘this time is different’ seems naive,” Black said.
No one disagrees that fully autonomous vehicles are the future of the auto industry. The debate has always been whether there will be 1 auto maker ( $tsla) that solves general autonomy, or 10 or 20. $BIDU already has 500 robotaxis in service, 50% which drive fully autonomously,… https://t.co/YORmGm5mOm
Why It’s Important: While Tesla has predicated its future on FSD and robotaxis, Black is among the camps that believe in the potential of an affordable EV. Tesla diffused optimism regarding a sub-$30,000 EV by prioritizing robotaxis over it.
The company has scheduled robotaxi unveiling on Aug. 8 and more details on the fleet service will be made available then.
Tesla bull Cathie Wood’s Ark Invest, which has a $2,000 price target for Tesla by 2027, sees robotaxis accounting for 44% of revenue, 64% of EBITDA, and 67% of enterprise value by that timeframe. Elaborating on the potential, the firm said, “With access to 50x more driving data than Baidu and 280x more than Waymo, Tesla has a massive data advantage as it prepares to launch its robotaxi service, the largest AI project in the world.”
Tesla ended Friday’s session up 1.60% at $177.46, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Since 1919, there have been only 13 winners. Can 2024 Kentucky Derby champion Mystik Dan‘s name echo with the likes of Secretariat, Seattle Slew and Justify amid this year’s limited field?
The Trend is Not Your Friend: The Triple Crown is a challenging feat. Horses must win the Kentucky Derby in early May, the Preakness Stakes in mid-May and the Belmont Stakes in June.
This is a tall task, partly due to the differences in course length among the three races. The Kentucky Derby is 1.25 miles long, while the Preakness Stakes is the shortest at 1.1875 miles.
The finale at the Belmont Stakes is the longest, at 1.5 miles.
Since Justify in 2018, no horse who won the Kentucky Derby has been able to follow up their win at the Preakness. To win the Triple Crown, Mystik Dan must first break this streak at Saturday’s Preakness Stakes.
Baffling Baffert: Controversial trainer Bob Baffert’s horses have won the last eight Preakness Stakes. His horse Muth, who was originally favored to win this year’s Preakness, was scratched after reporting a high fever per ESPN.
His other entry, Imagination, does not seem to be as strong of a contender.
No Pimlico Special: The Preakness is held at the Pimlico Race Course in Baltimore, Maryland. It is not uncommon for horses whose home track is Pimlico to skip the Kentucky Derby to race at the Preakness, often succeeding. There are no such cases this year.
Fresh Legs:Horses whose home track is not Pimlico but still skip the Kentucky Derby also find success at the Preakness.
Preakness winners this century who did not compete at the Derby include Red Bullet in 2000, Bernardini in 2006, Rachel Alexandra in 2009, Cloud Computing in 2017, Rombauer in 2021, Early Voting in 2022 and National Treasure in 2023
Only three horses in 2024’s field raced at the Derby: Champion Mystik Dan, fourth place finisher Catching Freedom, and 17th place finisher Just Steel.
He’s A Mudder: With rain forecasted on Saturday, Mystik Dan could have an edge due to his prior success racing in the mud; he won the Southwest Stakes in January on a muddy course.
Closing it Out: Triple Crown winners must pull through in three highly competitive races. A win is a monumental event that occurs infrequently. If Mystik Dan can edge out wins at the Preakness Stakes and the Belmont Stakes, it would be among the most exciting sporting accomplishments of the year.
With Mystik Dan as the favorite at low odds, perhaps playing him in exactas with Catching Freedom and some other long shots may yield a good return. Just remember: Mystik coupled with the second favorite in the Derby, Siera Leone, returned $256.58 on a $2 wager.
TikTok confirmed testing the ability for users to upload 60-minute videos. This feature is currently available to select users in specific markets, and there are no immediate plans for a broader rollout.
Initially recognized for 15-second videos at launch, TikTok has gradually increased its video length limits, adapting to the demand for longer formats such as cooking demonstrations, beauty tutorials, and educational content, TechCrunch reports.
This extension offers creators more versatility in their content, challenging platforms like Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube by encouraging creators to post longer videos on TikTok.
Moreover, this could pave the way for uploading full TV show episodes directly rather than in segments.
Networks might leverage this extended format to debut show episodes on TikTok, similar to strategies employed on YouTube.
TikTok also enhances the user experience for longer videos by testing features like horizontal full-screen viewing and video-scrubbing thumbnails.
Recently, Amazon.com, Inc’s (NASDAQ:AMZN) Twitch launched a short-form video platform, Discovery Feed, that lets users browse through short clips extracted from longer videos.
TikTok is actively working to maintain its presence in the U.S. after President Joe Biden signed legislation that gives TikTok parent ByteDance nine months, with an option to extend for another 90 days, to either divest the app or face a nationwide ban.
Reports also indicatedthat Microsoft Corp (NASDAQ:MSFT) LinkedIn is testing TikTok-style short-form video feeds focusing on career content.
Reportedly, Uber Technologies, Inc (NYSE:UBER) Uber Eats plans to launch a TikTok-style short-form video feature to improve food discovery.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
One of the key figures in the GameStop Corporation (NYSE:GME) short squeeze of 2021 is set to appear on “Benzinga Live” Thursday, sharing an update on his previous bearish take on the video game retailer.
What Happened: Activist investor, short seller, and Citron Research founder Andrew Leftpreviously appeared on “Benzinga Live” on Jan. 21, 2021 to share his bearish thesis on GameStop, which may have helped kickstart a rally in shares.
Left will be back on “Benzinga Live” on Thursday at 12:30 p.m. ET.
“After 30 years in the markets and countless interviews, it’s surreal to be questioned by the media to interpret memes from Roaring Kitty. This enigma is drawing more focus than even Buffett’s new confidential stock. In 2024, it appears we’re all just cogs in a wildly unpredictable system,” Left tweeted from the Citron Research account.
The appearance by Left comes as GameStop shares have soared on the week, led by the return of Roaring Kitty, aka Keith Gill, on social media platform X.
Roaring Kitty, who played a central role in the retail trade of GameStop in 2021, posted a meme on X on Sunday and has posted video clips from movies Monday, Tuesday and Wednesday.
The rally appeared to lose steam Wednesday, with GameStop shares falling.
GMEdd.com co-proprietor Rod Alzmann will also appear on “Benzinga Live” Thursday. Alzmann previously covered GameStop in 2021 and was also interviewed by Benzinga during the 2021 short squeeze.
Why It’s Important: GameStop was the target of a battle between retail traders against hedge funds and short sellers in 2021. Left was among the investors betting against GameStop due to fears of declines for the struggling retailer.
“You might have loved the setup on GME when it was $14, because of the high short interest,” Left said at the time. “There’s a high short interest for a reason, because pretty much their business is on a decline.”
As Left’s interview was taking place, thousands of people flooded the chat with bullish takes on GameStop and the shares began trading higher. The stock went on to continue rising over the next couple of days.
The aftermath of the 2021 GameStop short squeeze led to major losses for many short sellers and hedge funds. While Citron Research lost money on the trade, Left also credited GameStop as one of his best trades ever, given the timing of his exit.
“The best trade I’ve ever made in my whole life was getting out. How crazy is that?” Left said in July 2023.
Left exited his position in GameStop at around $92 per share. Citron Research estimates that if he stayed in his GameStop short for two more days, he would have been completely wiped out.
Left went on to say that Citron Research would no longer publish short reports and instead focus on companies that could be multibaggers.
The Citron Research founder, who has exposed troubled stocks for years, also said in 2023 he should be rewarded for exposing bad companies instead of being targeted by federal agencies.
“For three months, while you were at your kid’s baseball game, I was investigating a fraud. While you were watching Netflix with your wife, I was up all night working,” he said.
Left has since published several short reports targeting companies like Etsy, Luminar and the cryptocurrency market.
As of May 16, 2024, five stocks in the utilities sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
On April 25, FirstEnergy posted better-than-expected quarterly sales. “Despite a mild winter, we’re off to a solid start in 2024. Our first quarter financial results are above the midpoint of our guidance, reflecting strong execution across each of our businesses,” said Brian X. Tierney, President and Chief Executive Officer. The company’s stock gained around 9% over the past month and has a 52-week high of $40.65 .
RSI Value: 70.99
FE Price Action: Shares of FirstEnergy rose 1.1% to close at $40.26 on Wednesday.
On May 7, NRG Energy reported better-than-expected first-quarter GAAP EPS results. “NRG continued to deliver exceptional operating and financial results during the first quarter of 2024,” said Larry Coben, NRG Chair, Interim President and Chief Executive Officer. The company’s stock gained around 12% over the past five days and has a 52-week high of $86.00.
RSI Value: 71.11
NRG Price Action: Shares of NRG Energy rose 2.9% to close at $84.49 on Wednesday.
On May 15, AES agreed to sell its equity interest in AES Brasil to Auren Energia for $640 million. The company’s stock gained around 33% over the past month and has a 52-week high of $22.60.
RSI Value: 80.91
AES Price Action: Shares of AES rose 4% to close at $21.13 on Wednesday.
On April 23, NextEra Energy posted upbeat quarterly earnings. The company’s stock jumped around 25% over the past month and has a 52-week high is $77.19.
RSI Value: 82.39
NEE Price Action: Shares of NextEra Energy rose 2.2% to close at $77.05 on Wednesday.
On April 25, PG&E reported first-quarter FY24 operating revenue of $5.86 billion (vs. $6.21 billion a year ago), missing the consensus of $6.59 billion. The company’s stock jumped around 14% over the past month and has a 52-week high of $18.32.
RSI Value: 76.63
PCG Price Action: Shares of PG&E rose 1.7% to close at $18.31 on Wednesday.
NeuralinkCorp’s malfunctioning of tiny wires in the brain implant has been known for years, even before the company acknowledged it in a blog last week.
The problem was first identified during animal testing conducted prior to the company’s approval for human trials last year, but the risk was deemed insufficient to require a redesign, according to a report from Reuters.
Neuralink aims to enable paralyzed individuals to control digital devices with their thoughts through its brain implant technology.
The company, founded by Elon Musk, recently disclosed that the implant’s ultra-thin wires, finer than human hair, had retracted from the brain of their first human subject during the initial trial, affecting the number of electrodes able to read brain signals.
Despite this setback, the company adjusted its algorithm to regain the implant’s ability to monitor brain activity.
The U.S. Food and Drug Administration (FDA) was aware of this potential issue, as it had been reported in the animal testing results submitted by Neuralink during their application for human trials.
However, the FDA has not commented on the specifics or the significance of the issue. The agency has assured that it will continue to oversee the safety of patients in Neuralink’s study.
Continuing trials without redesigning the wires might pose challenges if more wires retract and the algorithm modifications prove inadequate.
Redesigning the wires comes with its own risks, including potential damage to brain tissue during removal or if the wires dislodge.
Neuralink’s design aims to allow seamless removal and updates of the implant as technology advances.
In January, Neuralink implanted its device in Noland Arbaugh, who was paralyzed from a diving accident in 2016.
The company reported in a recent blog post that several wires retracted from his brain following the surgery. There were no mentions of health issues for Arbaugh or details on the exact number of wires that malfunctioned.
Further animal testing was conducted to address these issues, leading to eventual approval. Some pigs tested with the device developed brain inflammation called granulomas, which raised internal debates and investigations at Neuralink.
The company concluded that the device and threads were not responsible for the inflammation.
Disclaimer:This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Micron Technology (NASDAQ:MU) has outperformed the market over the past 5 years by 15.81% on an annualized basis producing an average annual return of 28.72%. Currently, Micron Technology has a market capitalization of $136.20 billion.
Buying $100 In MU: If an investor had bought $100 of MU stock 5 years ago, it would be worth $339.32 today based on a price of $122.99 for MU at the time of writing.
Micron Technology’s Performance Over Last 5 Years
Finally — what’s the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
