5 Stocks To Watch Before The Market Opens On Election Day

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CVS Caremark (CVS): The healthcare industry has been hit hardest ahead of the election with both nominees having taken a hardened stance on the sector. Shares of CVS are trading 15% lower this year despite a string of robust year over year comparisons. Analysts are expecting the retail drug chain to maintain its robust growth of the past few quarter and deliver a 22% increase on the bottom line and 17% on the top. The recently completed acquisitions of Omnicare and Target Pharmacy, while still in the integration process, are expected to provide new support to top line growth. Profitability and same store sales should continue to be adversely impacted by the introduction of generic drugs. In the second quarter, genericization dragged down pharmacy same store sales by 355 basis points. The potential merger of Rite Aid and Walgreens coupled with the off chance that Amazon opens up convenience store could severely impact CVS’ long-term outlook. In the meantime, analysts are optimistic that CVS can maintain its robust growth of the past few quarters.

Valeant Pharmaceuticals (VRX): Valeant was one of the best performing stocks on Wall Street in the first half of 2015, but over the past 12 months  and a price gouging scandal, shares have bottomed out. After reaching highs of over $250 per share, the stock has plummeted over 90%, to all time lows, where it is today.  The ongoing freefall forced management to oust now former CEO Michael Pearson, who led the company through the thick of its price hikes. With several new board members, one being infamous hedge fund manager Bill Ackman, and a new CEO, Valeant is still fumbling. Its most recent report delivered a nearly 50% decline on the bottom-line and 10% on the top. With no signs of improving anytime soon, the upcoming quarter is shaping up to be another disaster.

SeaWorld Entertainment (SEAS): Financial performance and share prices have trended lower in recent quarters driven by lower traffic trends and a growing list of negative publicity surrounding animal cruelty. In the second quarter both earnings and revenue delivered 5% declines from a year earlier blamed on a decline in Latin American attendance, softness in the Orlando market, and an unfavorable storm season. Ongoing efforts to ease these concerns through promotional campaigns and jump start traffic trends haven’t gained traction and will likely take its toll on the bottom line. Additional investments into new rides and extending hours of operation haven’t swayed analysts expectations which are calling for a 7% decline in earnings and 3% of sales.

Wayfair (W): Wayfair is falling victim to a theme plaguing many recent IPOs: mounting losses and decelerating revenue growth. In the second quarter, the e-commerce platform posted an 187% decline on the bottom line and has yet to deliver a profitable quarter since going public in late 2014. Over this time revenue growth has dropped significantly with expectations  of delivered a 42% increase in the third quarter. During the quarter Wayfair introduced a number of new partnerships and initiatives to help reenergize margins and traffic trends. Some of these include deals with HGTV and A&E Networks along with a new augmented reality app will have to enhance the consumer’s experience.  

Carrols Restaurants Group (TAST ): Strong results from McDonald’s this earnings season sets a favorable tone for the remaining fast food chains which include Carrol’s and Wendy’s this week. Carrols Restaurant Group is best known for owning and operating over 725 Burger King stores in the United States. The company continues to be in the process of acquiring more Burger King locations. During the third quarter, Carrol’s acquired 10 additional stores that are expected to support the top line. Burger King’s strong brand, frequent menu innovation, and ongoing promotional initiatives have proved resilient despite challenges in the quick service industry. Analysts at Estimize are expecting the continued addition of new stores to carry financial performance to a 25% increase on the bottom line and 12% on the top.