Earnings Plays to Look out For

This weeks opportunities

Trading floor 3

On Tuesday, Walmart (WMT) is likely to unveil 1Q EPS of $1.14 vs. $1.13 the prior year on revenue of $130.7B compared to $123.9B last year. Walmart is the world's largest company and number one retailer, and on April 30th, the Co introduced Express Delivery, a new service that delivers multiple items to a customers front door in less than two hours. The Co plans to roll this program out to almost 2,000 stores over a few weeks beginning in May. Looking at a daily chart, the RSI is below 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is below its 20 day MA ($125.79) but above its 50 day MA ($120.94). We are looking at the final target of $110.10 with a stop-loss set at $130.10.

On Wednesday, Take-Two Interactive Software (TTWO) is expected to announce 4Q EPS of $0.89 vs. $0.78 the prior year on revenue of $584.7M compared to $488.4M in the year before. The Co is a leading global video game publisher and its current analyst consensus rating is 19 buys, 8 holds and 1 sell, according to Bloomberg. From a technical point of view, the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $124.81 and $118.51). We are looking at the final target of $143.30 with a stop-loss set at $122.30. 

On Thursday, Nvidia (NVDA) is anticipated to release 1Q EPS of $1.68 vs. $0.88 the prior year on revenue of $3.0B compared to $2.2B last year. The Co is a leading designer of graphics processors and on May 14th, the Co premiered its new computers for artificial intelligence processing in data centers and graphics chips. The Co also stated that its Ampere chip design is 20 times faster than its predecessors. From a chartist's point of view, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $292.64 and $265.61).  We are looking at the final target of $384.00 with a stop-loss set at $286.00.   

On Friday, Deere (DE) is awaited to post 2Q EPS of $1.80 vs. $3.52 the prior year on revenue of $8.1B compared to $10.3B last year. The Co manufacturers agricultural and construction equipment, and on May 1st, the Co announced that Tamra A. Erwin, Executive Vice President and Chief Executive Officer of Verizon Business, a division of Verizon Communications was elected to Deere's Board of Directors. Technically speaking, the RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at $136.34 and $136.9). We are looking at the final target of $106.90 with a stop-loss set at $139.40.

Looking at the S&P 500 CFD, the index has become choppy and may be entering a sideways channel in between support at 2725 and resistance at 2973.00. Price made a lower low last week compared to the low it made in early May, but price is still headed to retest resistance at 2973. If price can break above the 2973 resistance level, we will most likely see further upside towards 3129. If price is unable to reach the 2973 resistance level we may see a pull back, followed by another reach for 2973.00. A break below 2725 support could pressure the index back down towards 2538 support.   



Source: GAIN Capital, TradingView

More from Earnings

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.