by Scott Martin | Jul 22, 2019 | Earnings Preview 6 PM, Instant News Flash
Netflix (NFLX: $362, down 3% earlier this week) disappointed last night and the stock's precipitous overnight decline provides us with a different kind of wake-up call. Whether you're in Netflix or not, you're going to want to read this flash.
On the surface, Netflix delivered a quarter almost entirely in line with what investors told themselves they wanted to see. Revenue of $4.92 billion was only 0.1% below guidance and reflects healthy 26% year-over-year improvement. Even quarter-to-quarter, the company squeezed 9% more cash out of its subscribers than it did three months ago.
Furthermore, despite profit being a lower priority while management invests vast amounts in original content, it was nice to see that Netflix carried $0.60 per share across the bottom line, $0.04 better than we expected.
But the market found fault as Netflix missed its subscriber growth target, losing 126,000 paid U.S. accounts and only adding 2.83 million new viewers overseas. Management told us to expect the audience to grow by an even 5 million accounts, so it's a clear disappointment.
There are some compensating factors like the way revenue hit guidance. Netflix raised prices in many markets and this is apparently where the pain point is. We know that now. Furthermore, management has doubled down on its aggressive growth forecasts and now expects subscriber adds to accelerate again in the current quarter.
We've had it with Netflix. We've warned throughout that it's going to be a volatile ride. The stock is now down 20% since we started covering it this time around, after making 65% back in 2016-17. We're worried about competitors like Disney and Apple starting to crowd into the space. With a negative $3.5 billion of free cash flow this year and next, we'd rather be invested in a company that actually makes money. We hereby remove Netflix from our High Tech portfolio. We added them on July 16th last year. We're gone now on July 18th, 2019.
However, even for a volatile stock, the reaction to so-so numbers was so extreme that we now suspect that the market as a whole is getting overheated. It's not Netflix. It's Wall Street. And an overheated market can lurch lower as fast as it soars. Even counting the stocks that fizzled and left our list under a cloud, the BMR universe is up a dramatic 33% YTD. This is a great time to lock in some of that profit before a moody market can take it away.
Is It Time to Take Some Profits?
Why are we asking this question?We can’t predict the future. You may think we can, but we can’t. And we want YOU to think about where YOU are and where you are going with your investments. We have made some amazing stock picks and we’ve made you a lot of money in many of these. (We’ve had a few losers too.) Roku is now a triple since we added it last year. Shopify is up 350% in two years. Square is another quadruple play. PayPal, Twilio, Paycom, Microsoft, Apple, Visa: all strong performers.
Is it time to take some of that off the table? There are a lot of things to worry about in the world today: Trump, Chinese tariffs, Iran, immigrants, global slowdown, flat earnings for the past quarter and next; negative interest rates in Europe and Japan . . . can they happen here? If so, will the Fed run out of ammunition if short rates go to zero? What about the attacks on Big Tech by Congress and the European Union? Can Facebook, Amazon and Google survive this onslaught? Of course they will, but why sit around with someone hitting you on the head with a hammer. Maybe it’s better to step a little away from the scene.
Lots of questions. No solid answers. Irrational exuberance was proclaimed by Alan Greenspan on December 5, 1996 after an amazing bull run in the preceding few years. But the bull market continued to skyrocket until the Spring of 2000. That’s almost 3½ years after Greenspan’s call. So is it too early to start taking profits now?
Again, we don’t know, but we do know that there are things you can do. You can sell some calls against your stocks. This brings in cash and cushions you on the downside a bit. But if Roku, which was at $32 at the start of the year goes from $110 now to $90 or even lower, it’s not going to cushion you much with $5 of call option income. So perhaps you can take some profits off the table. Maybe you should put some stops in place. Sell some at $104. Sell some shares if it hits $96. Sell some more if it hits $90. Then if it goes to $70, which is a distinct possibility in a nasty bear market, you’ve protected your profits and have cash in the bank.
And don't forget, we’ve got 17 stocks in our High Yield and REIT portfolios that are paying from 3% to 11% dividends. (Be wary of Annaly and New Residential, though.) These stocks are just waiting for you to place some cash in them so that you can sleep better at night.
This content is for our beloved subscribers and anything you see on this page is just an excerpt!
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by Todd Shaver | Feb 14, 2018 | Earnings Preview 6 AM, Earnings Preview 6 PM
Mazor Robotics (MZOR: $60)
Bull Market Report Target Price: $70
Bull Market Report Sell Price: $40, raised now to $52
Earnings Date: Wednesday, before the market open
Consensus: 4Q17
Revenues: $17 million
EPS: -$0.15
Year Ago Quarter Results
Revenues: $14 million
EPS: -$0.18
Key Things to Watch For in the Quarter
Analysts expect Mazor to report a 21% increase in revenues with a slight decrease in its earnings deficit for 4Q17. The stock is up 160% over the last year. We are intrigued by the firm’s ability to grow its top line, and expect them to turn a profit later in 2018 and in 2019. Mazor operates in a niche market where they produce spinal surgical robotics, and we expect the demand for their products to increase with the aging population.
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Shopify (SHOP: $126)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $105
Earnings Date: Thursday, 8:30 AM ET
Consensus: 4Q17
Revenues: $210 million
EPS: $0.05
Year Ago Quarter Results
Revenues: $130 million
EPS: $0.00
Key Things to Watch For in the Quarter
Shopify is expected to report a 60% increase in revenues (huge!) and a slight increase in earnings for 4Q17. The firm has beaten estimates in each of the past four quarters, which has been reflected in the stock’s 120% appreciation since this time last year. Since this is the firm’s first quarter reporting profitability, we expect the Street to react positively. The stock has shown a strong ability to grow its top line which will continue as e-commerce grows throughout Canada and the U.S. and the rest of the world.
The stock is right at our Target, and we would like it to move into the 130s before we raise the Target. We are quite confident this will happen soon. Maybe Andrew Left will short MORE stock! Yea.
by Todd Shaver | Feb 13, 2018 | Earnings Preview 6 AM, Earnings Preview 6 PM
Twilio (TWLO: $26)
Bull Market Report Target Price: $47
Bull Market Report Sell Price: $29
Earnings Date: Tuesday, 5:00 PM ET
Consensus: 4Q17
Revenues: $103 million
EPS: -$0.06
Year Ago Quarter Results
Revenues: $82 million
EPS: $0.00
Key Things to Watch For in the Quarter
Analysts expect Twilio to report a 25% increase in revenues with a small earnings deficit for 4Q17. Despite beating analyst estimates in each of the past four quarters, the stock is down 25% since this time last year. We believe this sell-off has provided investors with an even better opportunity for entry as we are still very confident in the firm’s ability to provide value to both its customers and its shareholders.
We are continuing to be very patient with this company as it continues to grow revenues in the 25% range. We are lowering our Target from $72 to $47, a double from where it is now. We still think it is possible for the stock to hit this number this year. And the Sell Price of $29 is above where the stock is. This price is here for you to decide what to do. We're sticking with Twilio. We're going to be right in the end. Big time.
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Omega Healthcare Investors (OHI: $26)
Bull Market Report Target Price: $45
Bull Market Report Sell Price: $28
Earnings Date: Tuesday, After market close
Consensus: 4Q17
Revenues: $223 million
EPS: $0.42
Year Ago Quarter Results
Revenues: $195 million
EPS: $0.63
Key Things to Watch For in the Quarter
Omega is expected to report a 14% increase in revenues and a 33% decrease in earnings per share for 4Q17. The stock currently trades down 17% since this time last year, which was partly caused by the firm’s inability to beat analyst estimates in two of the past four quarters. Omega trades at a PE of 34 and has a 10% dividend yield making it one of the more attractive stocks in our REIT portfolio. The economy continues to hold strong, and we expect that a firm with management like Omega will be able to turn around its performance in 2018.
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Annaly Capital Management (NLY: $10.30)
Bull Market Report Target Price: $12
Bull Market Report Sell Price: $11
Earnings Date: Wednesday, After market close
Consensus: 4Q17
Revenues: $675 million
EPS: $0.29
Year Ago Quarter Results
Revenues: $805 million
EPS: $0.30
Key Things to Watch For in the Quarter
Analysts expect Annaly to report a 16% decrease in revenues and a 3% decrease in earnings per share for 4Q17. The stock is down 5% over the past year. Although analysts are predicting a slowdown in the growth and earnings of the firm, we still believe the stock is undervalued. The stock yields 11.7% which is a great return in this volatile market.
The stock is down from its highs in August and then again in December, as the volatile interest rates have taken their toll. But we are strong believers in the ability for management to weather any move in the interest rate environment. In fact, at this lower price, we only see the stock moving higher from here this year.
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Andeavor (ANDV: $98)
Bull Market Report Target Price: $120
Bull Market Report Sell Price: $95
Earnings Date: Friday, 8:30 AM ET
Consensus: 4Q17
Revenues: $11 billion
EPS: $1.13
Year Ago Quarter Results
Revenues: $6.5 billion
EPS: $0.03
Key Things to Watch For in the Quarter
Andeavor is expected to report a 70% increase in its revenues and a $1.10 increase in earnings per share for 4Q17, after a very poor earnings quarter last year. The stock has beaten estimates in three of the past four quarters and is trading up 10% over the past year. 2018 has been a rough year thus far for Andeavor, as the stock has fallen 19% since the beginning of the year. However, we see this as a great entry point especially ahead of earnings on Friday, as we believe the firm is poised to beat estimates and regain some of its losses from this year.
by Todd Shaver | May 8, 2017 | Earnings Preview 6 PM
Opko Health, Inc. (OPK: $7.25)
Bull Market Report Target Price: $13
Bull Market Report Sell Price: $8
Earnings Date: Tuesday, 4:30 PM ET
Consensus: 1Q17
Revenues: $313 M
EPS: -$0.04
Year Ago Quarter Results
Revenues: $290 M
EPS: -$0.02
Key Things to Watch For in the Quarter
Opko Health is expected to report 8% growth in revenues to $313 million and a earnings remaining flat with a tiny deficit for 1Q17. Year-after-year, Opko continues to reduce its operating loss and grow its top line, moving it closer to producing earnings. Opko beat analyst estimates in three of the past four quarters, and we expect them to continue this trend as they continue to minimize their losses. We strongly value our $13 price target as Opko continues to grow within the diagnostic and pharmaceutical segment of the healthcare industry.
And yes, we know that the stock is below our Sell Price. Tomorrow's announcement will be the key. The stock will either shoot to $8 or fall to $6.50. We trust it will be the former. If you are antsy, then get out tomorrow before the close. The stock hit $18 in 2015 and we don't see why the stock can't get to the $13-15 level later this year or next, as long as revenues keep increasing nicely like we have seen and like we expect.
by Todd Shaver | May 1, 2017 | Earnings Preview 6 PM
Mazor Robotics (MZOR: $36)
Bull Market Report Target Price: $44
Bull Market Report Sell Price: $32
Earnings Date: Tuesday, (exact time unavailable)
Consensus: 1Q17
Revenues: $11.5 M
EPS: -$0.17
Year Ago Quarter Results
Revenues: $6.5 M
EPS: -$0.24
Key Things to Watch For in the Quarter
Mazor Robotics is expected to report healthy revenue and EPS growth for 1Q17. Analysts estimate that Mazor will report a 79% increase in revenue to $11.5 million and a 30% increase in EPS to -$0.17. The firm reported earnings that missed estimates in all four quarters of 2016, and the stock has provided investors with a 200% return. The CEO made an appearance on Mad Money last week, contributing to the 55% upwards move since March 22nd, just 10 days ago. Mazor had a market cap of approximately $550 million at the beginning of this year, relatively small by Wall Street’s standards, allowing it to fly slightly unnoticed by larger investors. But not by readers of The Bull Market Report!
Shopify (SHOP: $77)
Bull Market Report Target Price: $90
Bull Market Report Sell Price: $59
Earnings Date: Tuesday, before the market open (exact time unavailable)
Consensus: 1Q17
Revenues: $122 M
EPS: -$0.09
Year Ago Quarter Results
Revenues: $72 M
EPS: -$0.06
Key Things to Watch For in the Quarter
Analysts across Wall Street estimate that Shopify will report a revenues increase of 67% to $122 million and an earnings deficit of -$0.09 (-50%) for 1Q17. Shopify beat analyst estimates in all four quarters of 2016, which has been reflected in the stock’s 134% return over the past year. Shopify provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. They assist in web design, set up, and facilitation of sales for their customers. Shopify is an industry leader and has positioned itself to catch more of the growing online retail business in the years to come.
We hereby raise the Sell Price from $59 to $65.
Apple (AAPL: $147, new all-time high)
Bull Market Report Target Price: $155
Bull Market Report Sell Price: We would not sell Apple
Earnings Date: Tuesday, 5:00 PM ET
Consensus: 2Q17
Revenues: $53.0 B
EPS: $2.02
Year Ago Quarter Results
Revenues: $50.5 B
EPS: $1.90
Key Things to Watch For in the Quarter
Analysts expect Apple to report modest growth in both EPS and revenues of about 6% and 5% to $2.02 and $53 billion respectively for 2Q17. When Apple beat estimates in 2Q16 the stock rose 5%. Since this time last year, investors have seen returns of over 50%, including a 1.6% dividend yield. Apple’s R&D department has been very busy in recent months. Rumors say they are looking into driverless car technology and revamping Apple Maps to incorporate features similar to Google Maps’ Street View. Apple continues its climb towards our $155 target.
The Carlyle Group (CG: $17.75)
Bull Market Report Target Price: $20
Bull Market Report Sell Price: $13
Earnings Date: Wednesday, 8:30 am ET
Consensus: 1Q17
Revenues: $550 M
EPS: $0.38
Year Ago Quarter Results
Revenues: $451 M
EPS: $0.18
Key Things to Watch For in the Quarter
Analysts estimate that The Carlyle Group will report a 22% increase in revenues to $550 million and an astounding 110% increase in EPS to $0.18 for 1Q17. Carlyle beat estimates in the first two quarters of 2016, but fell short to analyst’s aggressive third and fourth quarter estimates. Although the stock took an 8% hit following the 1Q16 earnings release, it has still managed to climb 2% over the past year. Add Carlyle’s incredible 10% dividend yield and shareholders who purchased this stock just last year would have already seen a 12% return. The stock has been trading horizontally over the past year; however we see it breaking out in the coming months towards our $20 target.
Tesla (TSLA: $327, a new all-time high)
Bull Market Report Target Price: $325
Bull Market Report Sell Price: $280
Earnings Date: Wednesday, (exact time unavailable)
Consensus: 1Q17
Revenues: $2.6 B
EPS: -$0.76
Year Ago Quarter Results
Revenues: $1.2 B
EPS: -$1.45
Key Things to Watch For in the Quarter
Analysts estimate that Tesla will report a 48% decrease in the earnings deficit to -$0.76 and 115% increase in revenues to $2.6 billion for 1Q17. Tesla only beat analyst estimates in the third quarter last year, but the stock still managed to climb 25%. Elon Musk, Tesla’s famed CEO, has continuously grown the firm’s Research and Development operations. These expenditures have made huge contributions to the firm’s top line revenue, allowing it to provide affordable electric cars to the mass market. The firm has struggled to make a profit thus far, however we are confident in Musk’s vision and ability to change the landscape of the automotive market.
It just hit our Target today, so we hereby raise our Target to $350 from $325. Expect a stock split at any time too.
Facebook (FB: $152, a new all-time high)
Bull Market Report Target Price: $165
Bull Market Report Sell Price: $140
Earnings Date: Wednesday, 5:00 PM EST
Consensus: 1Q17
Revenues: $7.8 B
EPS: $1.12
Year Ago Quarter Results
Revenues: $5.4 B
EPS: $0.77
Key Things to Watch For in the Quarter
Analysts estimate that Facebook will report a 45% increase in both revenue and EPS to $7.8 billion and $1.12 respectively for 1Q17. Facebook reported earnings that beat analyst estimates in 2Q17 and the stock climbed around 3% in the weeks following the announcement. Facebook is trading up 30% from this time last year. The firm continues to dominate the global advertising market through its main website Facebook.com and its subsidiaries Instagram, WhatsApp, and Messenger. Analysts project that Facebook will realize a 12% market share of global digital advertising and a 30% market share of all display advertising in the U.S. by the end of 2018. CEO Mark Zuckerberg has a vision of globalization that continues to drive Facebook’s growth.
Square (SQ: $18.75)
Bull Market Report Target Price: $24
Bull Market Report Sell Price: $14
Earnings Date: Wednesday, 5:00 PM ET
Consensus: 1Q17
Revenues: $450 M
EPS: -$0.08
Year Ago Quarter Results
Revenues: $380 M
EPS: -$0.29
Key Things to Watch For in the Quarter
Analysts estimate that Square will report a revenue increase of 19% to $450 million and an improvement in the earnings deficit by nearly 80% to -$0.08 for 1Q17. Despite a rough start to the year in 2016, where shares fell nearly 30% following the 1Q16 earnings release, the stock has managed to provide investors with a 140% return from the stock’s 52-week low. Square announced last week that it would be acquiring a team from the struggling social app Yik Yak, a move that will bring a new perspective and high level talent to Square’s human resources.
Annaly Capital Management (NLY: $11.85)
Bull Market Report Target Price: $12
Bull Market Report Sell Price: $9, hereby raised to $11.
Earnings Date: Wednesday, after market close (exact time unavailable)
Consensus: 1Q17
Revenues: $575 M
EPS: $0.30
Year Ago Quarter Results
Revenues: $390 M
EPS: $0.30
Key Things to Watch For in the Quarter
Things are going well at Annaly. The company met earnings estimates in the first 3 quarters of 2016 and beat estimates in the fourth quarter. The stock is up 13% over the past year and pays an astonishing 10% dividend. Market sentiment on Annaly is quite bullish; only 2% of its outstanding shares have been shorted (bet against). Insiders have increased their holdings by 5% over the past year, showing a positive outlook by the firm’s executive team.
We love this chart here:
Omega Healthcare Investors (OHI: $33)
Bull Market Report Target Price: $45
Bull Market Report Sell Price: $28
Earnings Date: Thursday, 10:00 AM ET
Consensus: 1Q17
Revenues: $200 M
EPS: $0.51
Year Ago Quarter Results
Revenues: $177 M
EPS: $0.29
Key Things to Watch For in the Quarter
Things are going well at Omega Healthcare Investors, and is paying a beautiful 7% dividend. When Omega missed analyst estimates in the first quarter of 2016 the stock dipped 10% before recovering to a 52-week high of $38. The stock currently trades at a P/E ratio of 18 (Healthcare Industry P/E: 60), which is very cheap, especially considering its high dividend yield.
Welltower (HCN: $71)
Bull Market Report Target Price: $84
Bull Market Report Sell Price: $60
Earnings Date: Friday, before market opening (exact time unavailable)
Consensus: 1Q17
Revenues: $1 B
EPS: $0.42
Year Ago Quarter Results
Revenues: $1 B
EPS: $0.42
Key Things to Watch For in the Quarter
In the first quarter of 2016, Welltower missed estimates by 3 cents and the stock still climbed 4% in the days following the announcement. Welltower is a REIT that invests in senior living and retirement homes. The stock is up 2% over the past year and we expect that it will continue to grow as the demand for senior living increases.
by Todd Shaver | Apr 24, 2017 | Earnings Preview 6 PM
Eli Lilly and Company (LLY: $83)
Bull Market Report Target Price: $88
Bull Market Report Sell Price: $76
Earnings Date: Tuesday, 9:00 am ET
Consensus: 1Q17
Revenues: $5.2 B
EPS: $0.96
Year Ago Quarter Results
Revenues: $4.9 B
EPS: $0.83
Key Things to Watch For in the Quarter
Analysts expect Eli Lilly to report a 7% increase in revenues to $5.2 billion and a 16% increase in EPS to $0.96 for 1Q17. Despite Eli Lilly only beating estimates in the second quarter of 2016, the stock has climbed 5% since last year. It is currently trading 30% above its 1-year low of $64, and at a 31 P/E is relatively low compared to the industry average of 60. Eli Lilly also offers its shareholders a 2.5% dividend.
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Equity Residential (EQR: $64)
Bull Market Report Target Price: $85
Bull Market Report Sell Price: $55
Earnings Date: Tuesday, After market close - exact time unavailable
Consensus: 1Q17
Revenues: $605 M
EPS: $0.30
Year Ago Quarter Results
Revenues: $615 M
EPS: $9.84
Key Things to Watch For in the Quarter
Analysts expect Equity Residential to report a 2% decrease in revenues to $605 million and a 97% decrease in EPS to $0.30. The stock has fallen 10% over the past year, however this just provides cheaper opportunities for entry. Equity Residential currently trades at a P/E ratio of 5, which is extremely low compared to the REIT industry. Equity Residential pays a 3% dividend and is trading 12% under its 52-week high.
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PayPal (PYPL: $44)
Bull Market Report Target Price: $48
Bull Market Report Sell Price: We would not sell PayPal
Earnings Date: Wednesday, 2:00 PM ET
Consensus: 1Q17
Revenues: $3.0B
EPS: $0.41
Year Ago Quarter Results
Revenues: $2.5B
EPS: $0.37
Key Things to Watch For in the Quarter
Analysts estimate that PayPal will report a 20% increase in revenue to $3.0 billion and an 11% increase in EPS to $0.41 for 1Q17. In this same quarter, last year PayPal beat estimates, however the stock still fell about 3% in the few weeks following the earnings release. PayPal came through for its shareholders in the last three quarters of 2016 as shares climbed nearly 20% after 1Q16. Analysts are optimistic about PayPal’s most recent announcement, to partner with Visa in order to accelerate the adoption of digital and mobile payments across Asia Pacific, as a major driver of future growth.
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CBRE Group (CBG: $34)
Bull Market Report Target Price: $40
Bull Market Report Sell Price: $32
Earnings Date: Thursday, 08:30 AM ET
Consensus: 1Q17
Revenues: $3.0 B
EPS: $0.34
Year Ago Quarter Results
Revenues: $2.9 B
EPS: $0.36
Key Things to Watch For in the Quarter
Wall Street expects CBRE Group to report a 3% increase in revenues to $3.0 billion and a 6% decrease in EPS to $0.34. As a global force in the real estate market, CBRE has greatly benefited from the appreciation commercial office buildings over the past few years. The stock has provided investors with a 15% return over the past year alone. CBRE beat analyst estimates in all four quarters of 2016. CBRE is currently trading at a P/E ratio of 20, relatively in the REIT world.
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United Parcel Service (UPS: $106)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $97
Earnings Date: Thursday, exact time unavailable
Consensus: 1Q17
Revenues: $1.1B
EPS: -$0.04
Year Ago Quarter Results
Revenues: $1.0 B
EPS: $0.04
Key Things to Watch For in the Quarter
Analyst estimates suggest that United Parcel Service will report a 10% increase in sales to $1.1 billion and a loss in EPS of $0.04 per share for 1Q17. UPS beat analyst estimates in the first three quarters of 2016, but missed in the fourth. As a result, the stock dropped over 10% following the 4Q16 earnings announcement. The stock has remained relatively unchanged over the past year. We are confident that the stock’s consistent 3.2% dividend will attract investors who are looking for a healthy yield as an alternative to the fixed income markets, as well as great potential for growth.
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Athenahealth (ATHN: $118)
Bull Market Report Target Price: $125
Bull Market Report Sell Price: $113 (changed today from $105)
Earnings Date: Thursday before the market opens
Consensus: 1Q17
Revenues: $300 M
EPS: $0.47
Year Ago Quarter Results
Revenues: $255 M
EPS: $.34
Key Things to Watch For in the Quarter
Analysts estimate that Athenahealth will report significant growth in both revenues and EPS for 1Q17. Sales are expected to increase by 16% to $300 million and EPS are expected to increase by 38% to $0.47. Athena beat analyst estimates in three of the past four quarters, but the stock is up from the $103 level when we added the stock to our Healthcare Portfolio in November. We remain bullish as Athena continues to bring on renowned medical professionals to its board.
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Celgene (CELG: $123)
Bull Market Report Target Price: $135
Bull Market Report Sell Price: $115
Earnings Date: Thursday, 09:00 AM ET
Consensus: 1Q17
Revenues: $3.0 B
EPS: $1.63
Year Ago Quarter Results
Revenues: $2.5 B
EPS: $1.32
Key Things to Watch For in the Quarter
Wall Street analysts estimate that Celgene will report a healthy increase of both sales (21% to $3.0 billion) and EPS (23% to $1.63) for 1Q17. Celgene has consistently beat estimates in the past four quarters pushing the stock up 10% over the past year. Celgene’s four best-selling drugs are all patent-protected in the U.S. until at least 2024, which provides long-term growth potential. Management expects revenue to nearly double by 2020, as it is expected to exceed $21 billion. We are excited to follow Celgene’s growth through the turn of the decade.
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Bristol-Myers Squibb (BMY: $54)
Bull Market Report Target Price: $77
Bull Market Report Sell Price: $51
Earnings Date: Thursday, 10:30 AM ET
Consensus: 1Q17
Revenues: $4.7B
EPS: $0.73
Year Ago Quarter Results
Revenues: $4.4B
EPS: $0.74
Key Things to Watch For in the Quarter
Analysts expect Bristol-Myers Squibb to report an 8% increase in sales to $4.7 billion and a slight 1% decrease in EPS to $0.73. The stock has come back nicely from its low in January of $48. The firm continues to produce a 3% dividend and provides a good opportunity of entry as the stock only trades at a P/E ratio of 20.
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Alphabet (GOOG: $857)
Bull Market Report Target Price: $900
Bull Market Report Sell Price: We would not sell Alphabet
Earnings Date: Thursday, 1:30 PM ET
Consensus: 1Q17
Revenues: $24 B
EPS: $7.40
Year Ago Quarter Results
Revenues: $20 B
EPS: $7.50
Key Things to Watch For in the Quarter
The stock set a new all-time today of $859. Wall Street analysts expect Alphabet, the parent company of Google, to report a 20% increase in sales to $24 billion and a slight 1% decrease in EPS to $7.40. Although Alphabet only beat estimates in two of the four quarters in 2016, the stock still climbed nearly 17% over the past year. Google has made a number of developments this past quarter. YouTube, one of Google’s many subsidiaries, released YouTube TV, which offers customers 40 channels for only $35/month. We look forward to watching Alphabet grow as a result of its supportive firm culture and stellar leadership with CEO Larry Page at the helm.
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Microsoft (MSFT: $67)
Bull Market Report Target Price: $70
Bull Market Report Sell Price: We would not sell Microsoft
Earnings Date: Thursday, 2:30 PM ET
Consensus: 3Q17
Revenues: $24 B
EPS: $0.70
Year Ago Quarter Results
Revenues: $22 B
EPS: $0.62
Key Things to Watch For in the Quarter
Microsoft set a new all-time today at $67. Analysts expect Microsoft to report a 7% increase in revenues to $24 billion and a 13% increase in EPS to $0.70 for 3Q17. Microsoft missed first quarter estimates in 2016, and the stock fell nearly 4% in the weeks following the earnings announcement. This small hiccup was made up for as the stock has climbed 27% over the past year. A few quarters back, Microsoft and Facebook teamed up to build a transatlantic cable, providing its customers in Europe and Asia with better connections to their services.
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Amazon (AMZN: $909)
Bull Market Report Target Price: $1,000
Bull Market Report Sell Price: $875, changed today from $800
Earnings Date: Thursday, 2:30 PM ET
Consensus: 1Q17
Revenues: $35 B
EPS: $1.13
Year Ago Quarter Results
Revenues: $29 B
EPS: $1.07
Key Things to Watch For in the Quarter
Analysts expect Amazon to report a 22% increase in revenues to $35 billion and a 6% increase in EPS to $1.07 for 1Q17. Amazon beat estimates in 1Q16 and the stock climbed 20% in the weeks following the earnings release. Last year was one of the firm’s most successful, providing shareholders with a 43% return. Amazon currently trades at a 180 P/E ratio and is trading 50% above its 52-week low. We know the PE is insane, but it has been insane since the mid-90s when the company was founded. Analysts are bullish on Amazon as it continues to be the bane of the Retail industry. According to the Wall Street Journal, “U.S. Retailers are currently on pace to close the most stores (4,000) in more than a decade,” showing the effect of Amazon’s footprint.
