Equities weekly outlook: Salesforce, Dollar Tree, and Frasers

Salesforce Q3 earnings preview

Salesforce reports earnings on Wednesday, December 3, as the share price trades down 32% year to date, near its 52-week low, amid nervousness about potential weaknesses in its results.

Salesforce’s Q3 outlook shared in the previous quarter’s results failed to impress. The firm guided revenue of $10.24-$10.29 billion for the current quarter, below estimates of $10.29 billion. EPS was expected from $2.84 to $2.86, compared to estimates of $2.84.

Investors are concerned that growth is slowing to the high single digits after years of mid-teens expansion, a factor that has contributed to the stock's long-term underperformance relative to the S&P 500.

Uncertainty around AI monetization remains. Salesforce has repeatedly highlighted strong momentum in AI and data subscriptions. The Datacloud and Agentforce combined have reached around $1.2 billion in annual recurring revenue. However, many investors expected AI to move the growth needle faster, and some believe that the stock's premium valuation is unjustified.

Expectations are for revenue to rise 8.8% year on year in the coming quarter, while EPS is expected to be up almost 18%.

How to trade CRM's earnings?

Salesforce share price trades within a falling wedge. The price trades around the falling trendline support and around the 2025 low at 221. Sellers supported by the RSI below 50 will look to break below 221 to invalidate the falling wedge pattern and create a lower low. Below here 210, the 2024 low comes into play.

Buyers would need to rise above the 50 SMA at 244 to expose the 200 SMA and bring the falling trendline into focus at 260. Above here, 267 is the next logical level.

Dollar Tree Q3 earnings preview

The budget store will report Q3 earnings on Wednesday, December 3, when more middle- and higher-income consumers are shopping at the store amid sticky inflation and economic uncertainty. Titan households' budgets.

The US September CPI reading of 3% was cooler than expected, but still above the Fed's 2% target. Meanwhile, recent jobs data have also highlighted a weakness in the labour market, and consumer confidence tumbled to its lowest level since April. Amid these circumstances, budget retailers become more attractive, as households seek to rein in spending.

Shares in Dollar Tree fell after Q2 results in September, after the retailer said it expected adjusted EPS for Q3 to be similar to the previous period. Q2 EPS was $0.77 on revenue of $4.57 billion. The retailer also lifted full-year guidance to $19.3 billion to $19.5 billion, up from its previous range of $18.5 billion to $19.1 billion.

The share price is still up 46% year-to-date, far outperforming the S&P 500.

How to trade DLTR earnings?

Despite the share price falling sharply from the 117 high to a low of 85, the long-term uptrend remains intact. The price trades above the rising trendline, the 200, and the 50 SMA. Buyers, supported by the RSI above 50, will look to extend gains towards 117. A rise above here creates a higher high.

Support can be seen at the 50 SMA, 98, and below here, 92 comes into focus, the 200 SMA, and the rising trendline support.

Frasers H1 results preview

Fraser, the parent company of retailers such as Sports Direct and House of Fraser, shares are trading up 26% year to date. Frasers' half-year results will provide a glimpse into retail conditions amid a challenging year, as clouds continue to hang over the sector and the prospect of higher costs looming on the horizon.

Earlier this year, Frasers said it was working hard to offset soaring wage costs and recovering from a weak period following last year's budget. These financial results come a week after Rachel Reeves delivered her latest budget, where she confirmed the national minimum wage will rise again next April. Some businesses are also in line for further cost increases from business rates and property income tax.

In July, Fraser said it expected underlying profits of between £550 and £600 million in 2025-2026, compared with£ 560 million in the prior year. It remains to be seen whether the group is still on track

While the results come just after black Friday and Cyber Monday weekend, consumer sentiment is weak, and retail sales are under pressure.

How to trade FRAS results?

FRAS trades above its rising trendline, having recovered from the 668 low and rebounded to test 774, the 2025 high.

Buyers, supported by momentum, will look to rise above the 774 level towards 800, the round number, and on towards 900.

On the downside, support is at 750, the June high. A break below here opens the door to the 50 SMA at 720. Below here, the 200 SMA comes into focus at 680.