3 Stocks to Watch Today
76% of S&P 500 companies had reported a positive earnings per share for Q3 while 61% of them had reported a positive revenue surprise. Over the past five years 72% of S&P500 companies have beaten earning per share estimates while 59% have beaten revenue estimates. That speaks to the continued health of many companies during a quarter when trade tensions were rising, overseas economies were struggling, and corporate executives were growing pessimistic about the U.S. economy.
All in all, most U.S. companies are weathering the current earning season pretty well. But three months from now, they’ll have to report earnings all over again, while jumping over whatever estimates Wall Street sets for them in the interim and we will expect their results. We will look today the results of the following three companies after market close which do not make an exception of the statistics described and we will looking for positions.
The Adobe Systems Incorporated releases its fiscal 2019, fourth-quarter earnings today, after market close. Wall Street expects $2.26 earnings per share and almost $3 billion of revenue. Adobe shares have had a powerful rally this year, surging about 35%.
The daily chart technical analysis shows a very interesting picture. The price is testing 4 times the level of 313.00$ for the last six months and it is falling from that level. We also currently have a clear negative divergence and with interest we will look forward to the official announcement of the results and whether they will meet the expectations. Divergence shows us that a trend is weak or potentially unsustainable, but the most important thing firstly tonight will be the company results.
The retail sector will come under scrutiny once again when Costco Wholesale reports its fiscal results on Thursday, Dec. 12, after the close. Analysts are expecting $1.71 a share in profit on sales of $37.36 billion. The stock is now up 44% so far this year.
One of the best-performing companies with 44% growth since the beginning of the year is in strong uptrend and the price is at the moment of correction, very close to the support line and before the expected consecutive good results.
The final big chipmaker to release earnings this current season is Broadcom. The company reports Q4 2019 numbers on Thursday, Dec. 12 as well, also after the market close. Consensus calls for $5.36 EPS on $5.74 billion in revenue.
Broadcom Inc. is one of the well-performing US companies with 22% raise this year. The price is currently very close to the all-time high level of 323.00$ per share, which has been tested several times but not passed. On the daily chart above we also have a clear divergence in price, which is a signal for weak or potentially unsustainable trend. We will await the official results after market closing to determine whether we have a reason to enter the positions and what they should be.