Big Movers for May 18

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3 Stocks That Could Make Huge Moves

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Stocks about to make big moves this week.

Transcript of Big Movers for May 18

Page 1: Big Movers for May 18

3 Stocks That Could Make Huge Moves

Page 2: Big Movers for May 18

Best Buy (NYSE: BBY)

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Why Are Investors So Negative?1. During the holiday quarter, same-store

sales were negative, and results came in below expectations.

2. More broadly, many believe brick-and-mortar retailers, especially in electronic goods, will lose business as customers order products online.

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Here’s What to WatchWall Street Expectations1. Currently, 11% of

available shares are being shorted

2. Analysts estimate revenue will come in at $9.2 billion.

3. Analysts estimate that earnings per share will come in at $0.20.

What to really watchGuidance for the rest of the year will be critically important.

– Usually, the fourth quarter (holiday season) represents more than 40% of the company’s revenue.

– Analysts estimate 2014 revenue of $42.2 billion and EPS of $2.20

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Staples (Nasdaq: SPLS)

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Why Are Investors So Negative?1. As with Best Buy, many believe

consumers will increasingly order their office supplies online and have them delivered to their place of work.

2. Though the company has a successful e-commerce segment, its growth has slowed and can’t make up for declining in-store sales.

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Here’s What to WatchWall Street Expectations1. Currently, 14% of

available shares are being shorted.

2. Analysts estimate the company will report revenue of $5.6 billion.

3. Analysts estimate earnings per share will come in at $0.21.

What to Really Watch Listen for details of the company’s “Make More Happen” strategy

– Staples is trying to reinvent itself as the go-to place for all company needs.

– This goes far beyond paper and notebooks, and includes things like stethoscopes and muffin-tins

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GameStop (NYSE: GME)

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Why Are Investors So Negative?1. By now you may be noticing a trend, as

investors are worried that GameStop’s brick-and-mortar model is becoming obsolete when games and consoles can be purchased online -- and many games are moving to the Internet as well.

2. There are no big releases of new gaming consoles on the immediate horizon.

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Here’s What to WatchWall Street Expectations1. Currently, 42% of

available shares are being shorted.

2. Analysts expect GameStop to report revenue of $2 billion.

3. The company is expected to report earnings per share of $0.57.

What to Really Watch1. Pay more attention to

earnings news from the video-game makers, and how much revenue is now derived digitally.

2. Listen in to see if GameStop’s other subsidiaries -- Cricket, Spring Mobile, and Simply Mac -- are doing as well as the company hopes.

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