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The week in preview: Holiday week earnings

The earnings season is beginning to wind down as we have passed the halfway mark of the quarter and the holiday season begins in earnest next week with Thanksgiving in the United States.

Bermuda-based Frontline Ltd. (NYSE: FRO) is anticipated by analysts surveyed by Thomson Reuters to be one of the biggest earnings gainers among companies scheduled to report quarterly results this coming week. The oil tanker fleet operator is expected to post third-quarter earnings of $1.97 per share, 86.8% higher than in the same period a year ago, on revenues of $399.5 million (+44.6%). Frontline missed estimates by 6.4% in the previous quarter, and the consensus recommendation by analysts is to hold FRO. While Motley Fool likes its robust dividend, Jim Cramer said in a recent Lightning Round that he prefers rival Nordic American Tanker Shipping Ltd. (NYSE: NAT). Shares have fallen 52.9% in the past three months, and reached a 52-week low of $25.00 on Friday.

Analog Devices Inc. (NYSE: ADI) is also expected to be among the week's biggest earnings gainers. Analysts are looking for the semiconductor chip maker to report a fiscal fourth-quarter profit of $0.44 per share, 31.8% higher than a year ago, on revenues of $661.7 million (+2.0%). Analog Devices has beat estimates in three of the past five quarters, but only missed by 1.3% in the previous quarter. Analysts on average recommend buying ADI, which has a forecast long-term EPS growth rate of 17.3%, which better than the S&P 500 and that of rival Texas Instruments Inc. (NYSE: TXN). Shares sank to a multiyear low of $16.23 on Friday, and are down 41.1% in the past three months.

Continue reading The week in preview: Holiday week earnings

The week in preview: Earnings expectations for techs, Canadian banks

Results for the tech stocks in last week's preview were a mixed bag, some beats, some misses, some in line. By and large, expectations for tech companies reporting results this week remain high, though. Here's what analysts surveyed by Thomson Financial are anticipating in the way of earnings, as compared to the same period of the previous year.

Continue reading The week in preview: Earnings expectations for techs, Canadian banks

Volatile Markets: Steven Madden (SHOO) will wear well

In a volatile market, investors need to keep one thing in mind: valuation. As the term volatile implies, stocks easily move up and down in this type of market. As a result, if you plan on holding a stock for the long run and don't firmly believe in the future of your stocks, you stand to be incredibly stressed and nervous at almost all times.

On this note, I'd like to introduce a company that I consider to be a very interesting long-term play for this market -- Steven Madden (NASDAQ: SHOO), a purveyor of middle-to-upper level shoes. While there are certainly issues with the company -- namely the fact that the company's founder is a convicted felon who served several years in prison (and got paid during this time) -- I think the turnaround in the stock is very interesting for a variety of reasons, most importantly the stock's cheap valuation and recently announced increase in its share buyback.

Steven Madden sells a wide variety of shoes, encompassing products you might find at a discount retailer like Marshall's to shoes that could be found at a high-end retailer like Bloomingdales, implying that the company has a highly diverse pool of potential buyers. As a result, if any one class of consumer is hit, the company wouldn't suffer completely because it also caters to others. With the company in the process of designing a new line of dresses and growing in hot markets like New York and Las Vegas, I think there's certainly potential for operating momentum going into next year.

Continue reading Volatile Markets: Steven Madden (SHOO) will wear well

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Last updated: December 02, 2008: 10:55 AM

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