Buy These 3 Stocks Before Earnings For Big Upside Potential?
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On today’s episode of Full-Court Finance at Zacks we explore the market as the bulls try to look beyond inflation worries. The episode then dives into RH (RH Quick Quote RH - Free Report), Chewy (CHWY Quick Quote CHWY - Free Report), and Dave & Buster's (PLAY Quick Quote PLAY - Free Report) before they report their quarterly financial results to see if investors should consider buying any of these stocks.
The S&P 500 ended last week right below its all-time highs and the Nasdaq popped around 1.5%, as bullish investors keep pushing the tech-heavy index back above its 50-day moving average. The Nasdaq continued its climb to start the week of June 7, as Wall Street appears pleased enough with May’s jobs data that showed signs of improvement but might not force the Fed’s hand when it comes to pulling back on its easy-money policies.
The market has also seen so-called meme stocks roar back in the past week, including AMC (AMC Quick Quote AMC - Free Report), Bed Bath & Beyond (BBBY Quick Quote BBBY - Free Report), and GameStop (GME Quick Quote GME - Free Report). Meanwhile, the broader earnings picture continues to improve for the second quarter and beyond. Investors should be pleased to know that the outlook for S&P 500 earnings reflects true growth compared to the pre-coronavirus period in FY19.
With this in mind, we break down three companies set to report their Q1 financial results this week, starting with the luxury furniture retailer formally known as Restoration Hardware. RH shares have pulled back by roughly 15% from their late-April records heading into its first-quarter financial release on Wednesday. But the stock is on an epic run and its growth outlook remains strong as it continues to expand its high-end portfolio.
Chewy had soared over 300% from its March 2020 lows until Wall Street began dumping pandemic winners in February. The e-commerce pet store sits about 30% below its records ahead of its Thursday release and it has amassed millions of loyal pet owners at a time when Amazon (AMZN Quick Quote AMZN - Free Report), Target (TGT Quick Quote TGT - Free Report), and others dominate the broader digital shopping world.
The episode then ends with Dave & Buster's. PLAY shares surged despite the coronavirus crushing its in-person-heavy business. And the stock jumped nearly 10% through late afternoon trading Tuesday ahead of its Thursday results amid the great U.S. economic reopening.
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