Last week's Fed Beige Book report and GDP numbers suggested that the economy may be stabilizing, and this coming week will bring plenty of economic data to confirm or deny that suggestion. On the schedule are consumer credit, construction spending, factory orders, and pending home sales for June, the employment situation, the Import Price Index, and new motor vehicle sales for July, as well as the ISM Manufacturing and Non-manufacturing Indexes for July.
The week will also bring quarterly reports from home builders Beazer Homes USA Inc. (NYSE: BZH), D.R. Horton Inc. (NYSE: DHI), and Pulte Homes Inc. (NYSE: PHM). Yet again, analysts surveyed by Thomson Reuters expect all three to have narrowed their losses in the most recent quarter. However, they've all tended to post deeper-than-expected losses in recent quarters as well. Analysts also expect to see their revenue down 45% or more for the past quarter. They forecast long-term EPS growth of 7% or more, but none of these homebuilders has a First Call consensus buy recommendation, not surprisingly. Short interest is falling off for Beazer and D.R. Horton, and D.R. Horton and Pulte have been reporting positive cash flow from operations, but all three of them said they had more long-term debt than cash in hand last time around. Mortgage insurer PMI Group Inc. (NYSE: PMI) is likewise expected to report that it narrowed its second-quarter loss.
Companies expected to report lower earnings this week include Allstate Corp. (NYSE: ALL), Archer Daniels Midland Co. (NYSE: ADM), CBS Corp. (NYSE: CBS), Cisco Systems Inc. (NASDAQ: CSCO), Kraft Foods Inc. (NYSE: KFT), Marathon Oil Corp. (NYSE: MRO), Polo Ralph Lauren Corp. (NYSE: RL), Procter & Gamble Co. (NYSE: PG), and Whole Foods Market Inc. (NASDAQ: WFMI). But analysts anticipate the real earnings losers will be Toyota Motor Corp. (NYSE: TM) and financial giant MBIA Inc. (NYSE: MBI), which are expected to report swinging to losses from a year ago.
But there should be plenty of good earnings news this week as well. Here are a few for which analysts appear to have high hopes. That is, these companies are expected to report double-digit earnings grown in the most recent quarter, they have tended to offer positive surprises in recent quarters, and they have long-term EPS growth forecasts of greater than 10%. Also, the analysts' consensus recommendation is to buy each of them.
Insurer and Medicare provider Humana Inc. (NYSE: HUM) named a new chief marketing officer in the second quarter. The Louisville, Ky.-based company is expected to report that earnings rose 24.4% from a year ago to $1.64 per share. Revenue is expected to total $7.8 billion, 5.7% higher than a year ago. Humana reported more cash on hand than long-term debt in the previous quarter. The Motley Fool recently featured Humana as a stock ready to pop due to its growth potential and cash. Shares are up 13.6% in the past three months to $32.85, but they are still down 11.9% year to date.
VeriSign Inc. (NASDAQ: VRSN) provides internet and network services to telecoms and other enterprise customers. In its second quarter, the Mountain View, Calif.-based company spun off its Real-Time Publisher Services and Communications Services Groups. Analysts are looking for VeriSign to report that earnings rose 21.9% from a year ago to $0.32 per share. Revenue is expected to come to $255.2 million, which is 9.5% higher. VeriSign has an earnings multiple of 15x, and it also reported more cash on hand than long-term debt in the previous quarter. The share price is down 4.0% from three months ago to $20.44, and down 36.2% from a year ago.
A leading producer of dairy products, Dean Foods Co. (NYSE: DF) announced a stock offering and an acquisition in its second quarter. The Dallas-based company is expected to post a second-quarter profit that is 21.4% higher to $0.42 per share. However, revenue is expected to have fallen 9.5% from a year ago to $2.8 billion. Dean Foods has an earnings multiple of 13x, and Investopedia is optimistic for an earnings beat from Dean Foods. Shares are 11.9% higher than three months ago, or $21.19, which is just 1.2% higher than a year ago.
With more than 24 million subscribers, Comcast Corp. (NASDAQ: CMCSA) is the largest provider of cable television in the U.S., as well as a leading internet and digital phone service provider. In the second quarter that included the digital television conversion, the Philadelphia-based company is expected to post a profit of $0.26 per share on revenue of $8.9 billion. That's up from $0.21 per share on of $8.6 billion in the year-ago period. This dividend-paying company has reported cash flow from operations rising over the past few quarters. The Motley Fool recently pointed to Comcast as a bargain. Shares have dropped 9.2% in the past three months to $14.86, despite a 7.0% rise in the past month.
Dollar Tree Inc. (NASDAQ: DLTR) announced the retirement of a board member at its annual meeting in June. For the second quarter, the discount retailer's earnings are forecast to come to $0.50 per share on revenue of $1.2 billion. That's up from $0.42 per share on of $1.1 billion a year ago. Dollar Tree has much more cash on hand than long-term debt, according its last report, and an earnings multiple of 15x. Investopedia suggests that retailers like Dollar Tree will continue to grow after the recession passes. The share price reached a multiyear high of $47.28 last week and they are 10.6% higher year to date.
Others expected to post higher profits this week include Clorox Co. (NYSE: CLX), Coinstar Inc. (NASDAQ: CSTR), CVS Caremark Corp. (NYSE: CVS), DIRECTV Group Inc. (NASDAQ: DTV), Jack in the Box Inc. (NASDAQ: JACK), Live Nation Inc. (NYSE: LYV), Molson Coors Brewing Co. (NYSE: TAP), Public Storage Inc. (NYSE: PSA), Tyson Foods Inc. (NYSE: TSN), and many others.











Reader Comments (Page 1 of 2)
8-02-2009 @ 12:36PM
john said...
The obama media spin continues.... they are beating the drum about the "best July in decades".... yet amazingly, they fail to mention that July '09 DJIA is 21% BELOW July '08. Yep... the democrat program to spend our unborn great grandchildrens taxes is really working.... well it may be working to buy them votes from the urban ghetto denizens!
8-02-2009 @ 1:02PM
Garry Todd said...
Go Obama go. Make these stinking immoral godless lying lowlife
repubs eat crap. Bums deregulated so they could steal every-
thing blind now make em suffer. I am an independant voter who
will never consider anything the repubs say again.
8-02-2009 @ 1:05PM
blakewelding said...
We shall see...............the ONLY IMPORTANT NUMBERS THAT MATTER ARE JOBS....................PERIOD............spin that one obama......
8-02-2009 @ 1:06PM
blakewelding said...
................and NOT fake temporary "stimulus" jobs either............
8-02-2009 @ 4:17PM
randy said...
first it was the lip stick now the smoke & mirrors. At the end of the day barry is still a sht salesman w/a mouth full of samples
8-02-2009 @ 1:38PM
kdnorcutt said...
All these numbers that wall street waits for are all false indicators of the true economy. Unemployment new claims goes up but the number of existing claims go down. they try to let you think that people are getting jobs when the truth is their benefits have run out.housing data really makes me laugh.New home starts and existing sales. building a home does not mean it is sold. home sales are due to people and investors buying forclosures which has not slowed down even though our government has let you think that they have. banking bank of America has posted good profits and has started to pay back the money they received from the government, but just this week mentioned how they may have to close 600 branches by end of year . This economy will not see any signs of recovery until our idiots in washington start doing for the american people not wall street and banking.
The major parts that make up our economy is american people working and spending money and the small businesses in this country. wall street investors only add more negatives to the economy by running the prices of commodities up and down for their own gain. If our government can create a way to correct this problem then the working people could gain a sense of comfort this would be a real boost for our economy
8-02-2009 @ 1:46PM
Alnusw said...
Poor Obama. In office only 6 months and everyone is picking on him. Would someone tell me just what he has done to improve the economy? The Phil Gramm loophole is still in effect allowing the Oil Speculators to continue their "game". NAFTA and GATT are still there. Wall Street and Big Banking are still totally un-regulated. So just what has our new President done? ABSOLUTELY NOTHING.
8-02-2009 @ 3:24PM
mark said...
I WANT MORE INFO ON AIG. IT IS TIME FOR US TO STOP THIS STUPID, UNCONTROLLED SPENDING OF OUR MONEY. I CAN'T BELIEVE OUR OWN GOVERNMENT CAN NOT GET ANSWERS. WHAT DO WE HAVE TO DO?
8-02-2009 @ 3:30PM
gilbert morrow said...
Yeah , BoA is laying off people and closing branches , couldn't be better it is so upbeat , MORONS .
The Propaganda continues .
Gas prices will again rise $.20 cents in a week wait and see , and in 3 months the UAW will strike for more money .
God Help Us All
8-02-2009 @ 3:36PM
marshall said...
How is the economy recovering when all the money we are using is either borrowed or worthless?
8-02-2009 @ 4:02PM
kipiccolo said...
Thank you to Obama for saving our Country from this depression with the best rise in the DOW IN 20 YEARS!!!!!
8-02-2009 @ 5:56PM
Charles Carter said...
Almost 16 million unemployed. Banks and businesses still closing and shutting down branches. When industries shut down, no one counts the smaller industries that the big ones subcontract to. Everything Obama has done has caused more loss of jobs. Good news is that we aren't losing jobs as fast as we were. Bad news, we are stilling losing jobs must faster than gaining new jobs. Obama says his stimulus plan is working. It just won't take effect before we are in our greatest depression.
8-02-2009 @ 5:27PM
Dereck Dodson said...
I'm waiting on the "Ethnic-Owned" World Fortune that Finances all the Corporations Worldwide to get the recognition it deserves. All I am seeing is a few "dirty" presidential elects with "psycho" "World Fortune Government-Owned" "Support Industry Corporation" appointed ceo's trying to "justify the theft of these businesses" simply to keep attempting "pot-shots" at a "Totalitarian Rulership" as "Non-Ruler Class Temporary Elected Officials" and "enslavement" of the World with afor mentioned "Supporting Corporations" that are "Un-Needed" due to the "World Wireless Web"!
8-02-2009 @ 5:51PM
Tech said...
The FED's books are totally cooked and the "government" is just a bunch of graft sucking front boys for them. Both parties are a joke and the THIRTY FOUR THOUSAND LOBBYISTS can't be wrong! I write in David Rockefeller's name for everything as he is the old geezer Godfather with the Jewish crooks. Back in 1913 the robber barons bought this country and control ALL the money and therefore EVERYTHING else. FED/IRS scam signed into law by Wilson whose campaign they financed-easy! Unless Americans used force to stop these criminals nothing will change but it would be terrible. They created the CIA, NSA, DIA, FBI, and military lunatics and Homeland Security is to keep Americans under "control" while they bust us and loot the nation six ways til Sunday. Depends on how much "freedom" means to us but I have a feeling it doesn't mean much as long as the majority have food, some hope(however false) a roof and Hollywood T&A with sports thrown in. The BS is getting pretty deep though and I'm wondering how much people will take? They do too and those FEMA camps, NORTHCOM, NSA, FBI, the coffins, Israeli contractors I've met are in place just in case. While everyone stays dumbed down and accepts things and the media drones on about "green shoots" and total crap about the non-economy what's left of America will be sold off and the elite will continue stealing anything and everything before the total collapse-and it's going to collapse. 100 trillion buckeroos we owe? Yeah, gold, silver, food, guns, ammo, rural land, gardens, egg laying chickens, people around who aren't brain dead and you can count on, and if all Hell breaks just remember who to get even with when the time comes and the opportunity arises. They might keep the baloney going for awhile more but the dollar is doomed eventually and like the growing urban wastelands in Detroit, Camden, Newark, Youngstown, East LA, North Minneapolis, etc. the ones with the guns run the show and the police don't go there. Great depression#2 soon and the last one the same crowd pulled was the American Holocoust with 7.5 million dead. Good luck and wake up to survive. Oh,play the market using trendlines and close stops(mental or otherwise) and you won't lose up or down. Take some from the Goldman Sachs Jewish crooks and JP Morgan Chase the Rockefeller elite.
8-02-2009 @ 5:57PM
gary said...
How can we talk about a Recovery when 15 million Americans are still out of work?
8-02-2009 @ 6:29PM
jack said...
more signs of economic stability
..... IF YOU'RE MENTALLY CHALLENGED..... 3.5 years to complete the destruction of this once great country.
8-02-2009 @ 6:28PM
jack said...
Garry Todd said...
Go Obama go. Make these stinking immoral godless lying lowlife
repubs eat crap. Bums deregulated so they could steal every-
thing blind now make em suffer. I am an independant voter who
will never consider anything the repubs say again.
...
...
YES, WE CAN SEE YOU'VE NEVER GOTTEN AN EDUCATION, AND IT SHOWS.... WOW, HOW EMBARRASSING FOR YOU. GO BACK TO SCHOOL AND TAKE ECONOMICS 101, OR FOR YOU, YOU COULD START IN 7TH GRADE ECON. WHEN YOU'RE DONE, COME BACK AND THEN TALK TO THE ADULTS, CUPCAKE. PS. YOU LEARN MORE WITH YOUR MOUTH CLOSED AND YOUR EARS OPEN.
8-02-2009 @ 6:48PM
draw984 said...
Not holding my breath on this one. Takes a lot of work and time to dig ourselves out of a recession if history is any lesson. I foresee a 5 year window before any semblance of normacy returns. We are experiencing extraordinary times right now which we can tell our grand kids about.
8-02-2009 @ 7:14PM
WAYNE said...
I WANTED ECONOMIC STABILITY AND FOUND IT.
WWW.ONEYEARPLAN.NET/WAYNEHEMBREE
8-02-2009 @ 7:51PM
Elizabeth said...
Economic stability, boy, orange you glad a Democrat is in power, because of the big mess those greedy Conservatives created. Yuck! Now, we are in a big mess, because of what Bush created and it's going to take some time to improve, I pray.