We’re at the end of the second quarter earnings season. In years past, that might have meant it would happen quietly and with little interest. But this year the retailers and big tech are in the spotlight with so many questions about the economy and a possible recession. That means many traders are tuning in.
It’s a big week for retail earnings with Ulta Beauty, Macy’s, Kohl’s, Nordstrom and a bunch of niche retailers reporting. How was Back-to-School? What are they seeing with the consumer? Last week’s retail earnings reports were a mixed bag. But this week should provide more clarity.
Additionally, the final Magnificent 7 company to report, NVIDIA, will report Wednesday, after the close. Analysts are bullish and shares are back near all-time highs. But in addition to NVIDIA, other tech companies on deck include Snowflake, Autodesk, and Marvell. They could be market movers too.
Will this week’s earnings reports change any minds heading into the fall?
NVIDIA, Ulta Beauty and 3 Other Must-See Earnings Charts
1. Toll Brothers (TOL) has only missed one time in the last 5 years and it was in 2020, when the pandemic first started. That’s impressive for a homebuilder that has had to survive the initial pandemic hit, when buyers stayed home, as well as rising mortgage rates. Shares of Toll Brothers are up 50.3% year-to-date but have lost nearly 7% in the last 5 sessions as mortgage rates have jumped higher. What will Toll Brothers say on its conference call about the state of housing?
2. NVIDIA Corp. (NVDA) has missed just 3 times in the last 5 years but two of those were last year. But shares of NVIDIA have soared 221% year-to-date on the AI boom. Over the last 2 years, they’re up 125.6% while the NASDAQ is down 8.3%. NVIDIA is priced for perfection. Will NVIDIA deliver?
3. Snowflake Inc. (SNOW) is a 2020 IPO. Snowflake has beat 8 quarters in a row. Shares of Snowflake are up just 5.8% year-to-date even though it has posted big earnings beats. Over the last 2 years, they’re still down 43%. With a forward P/E of 266, is Snowflake’s valuation holding it back?
4. Ulta Beauty (ULTA) has only missed twice in the last 5 years and the last miss was in 2020. That’s impressive during the pandemic as Ulta Beauty had stores shut. Shares of Ulta Beauty are down 4.5% year-to-date but are still up 21.8% over the last 2 years while the S&P 500 was down 1.6% during that same time. Beauty has been hot. Will Ulta Beauty beat again?
5. Intuit Inc. (INTU) has beat 5 quarters in a row. Shares of Intuit, the owner of QuickBooks and TurboTax, peaked in 2021. They’re down 10.5% over the last 2 years but have gained 25.5% in 2023’s rally. Intuit isn’t cheap on a P/E basis. It is trading at 30.8x. Will another beat be a catalyst for Intuit to rally further this year?
[In full disclosure, Tracey owns shares of ULTA in her personal portfolio.]
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Ulta Beauty Inc. (ULTA) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Snowflake Inc. (SNOW) : Free Stock Analysis Report
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