Gilead Sciences (GILD: $74)
Earnings Date: Tuesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $7.4 billion
EPS: $2.74
Year Ago Quarter Results
Revenues: $8.3 billion
EPS: $3.22
Key Things to Watch For in the Quarter
Analysts throughout Wall Street estimate that Gilead Sciences will report a 14% decrease in earnings per share to $2.74 along with a 10% decrease in revenue to $7.4 billion. The stock’s relatively low P/E ratio of 6.5 compared to competitors Biogen and Amgen, which are more than double, suggests that shares are undervalued at their current price. Year-over-year, the stock is down around 30%, however it has successfully outperformed the Biotech index by a couple of percentage points over the past month. We remain bullish, as this stock continues to provide cheaper points of entry.
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Facebook (FB: $131)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $7 billion
EPS: $0.97
Year Ago Quarter Results
Revenues: $4.5 billion
EPS: $0.57
Key Things to Watch For in the Quarter
Wall Street analysts estimate significant growth for Facebook in the third quarter. With estimated 70% growth in earnings per share and 55% growth in revenue, the social media monster is continuously grabbing a larger slice of the digital advertising pie. The company’s forward P/E ratio (measure of price-to-earnings using forecasting earnings) of 26 suggests it is undervalued compared the Internet Information Provider sector P/E of 50. The stock is up over 25% in the last year, and we expect it to keep going higher driven primarily by its ability to market ads to the appropriate group of users.
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First Solar (FSLR: $41)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $985 million
EPS: $0.74
Year Ago Quarter Results
Revenues: $1.27 billion
EPS: $3.41
Key Things to Watch For in the Quarter
Analysts expect First Solar to report a 22% decrease in top line growth compared to the same quarter last year. Even more significantly, the firm is expected to report a 78% reduction in earnings per share. Down almost 30% year-over-year, primarily plagued by cheap oil and slowing economic growth, First Solar is currently trading at a PE ratio of 6 making this a good buying opportunity. As a leader in the alternative energy camp, First Solar has significant potential for growth, especially with the recent rise of oil prices.
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Brookdale Senior Living (BKD: $14.67)
Earnings Date: Wednesday, 4:00 PM ET
Consensus: 3Q2016
Revenues: $1.26 billion
EPS: $0.62
Year Ago Quarter Results
Revenues: $1.24 billion
EPS: $0.59
Key Things to Watch For in the Quarter
Analysts across Wall Street are expecting relatively small growth this quarter for Brookdale. Per share earnings are expected to increase by 5%, while revenue is expected to inch up by 2%. A number of institutional investors, including BlackRock and Teachers Advisors, have increased their positions in the company over the last year seeing a potential for future growth in the stock that is currently trading about 30% off of its 52-week high. As a large portion of the nation’s population enters their later years, Brookdale’s retirement centers and assisted living homes have strong growth potential.
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Mazor Robotics (MZOR: $22)
Earnings Date: Thursday, time unstated
Consensus: 3Q2016
Revenues: $7.7 million
EPS: -$0.19
Year Ago Quarter Results
Revenues: $5.0 million
EPS: -$0.24
Key Things to Watch For in the Quarter
Analysts are expecting significant growth for Mazor this quarter with a 20% estimated increase in earnings, and 44% estimated growth in revenue. Having nearly doubled over the course of the last year, the stock shows positive signs for future growth. This Israel-based medical device company that develops and markets surgical guidance systems, specifically for spinal surgery, has outperformed over the last year compared to other firms in its industry. We remain bullish on the stock as we have recently seen a number of institutional investors increase their positions by up to 60%.