American stocks had a mixed week last week as Joe Biden’s $6 trillion budget and the possibility of an infrastructure deal helped to offset worries of high-interest rates. The S&P 500 index ended at $$4,204, which was 0.35% below the weekly high of $$4,218. The Dow Jones, ended the week at $34,530, which was lower than the weekly high of $34,360.
At the same time, the closely-watched fear and greed index ended the week at 38, meaning that investors are still fearful. Let us look at some of the key stocks to watch this week.
Zoom Video (ZM)
Zoom Video was one of the biggest winners of the pandemic as more people shifted to the platform for work and collaboration. This strength pushed the shares to an all-time high of $589. This year, however, the trend has eased as more investors rotate from lockdown stocks to reopening plays like Carnival and Southwest. Zoom stock has declined from its all-time high to the current $331.
The Zoom stock price will be watched this week since the company will publish its quarterly results on Tuesday after the market closes. Analysts expect that the firm’s revenue rose to $907 million in the quarter while the earnings per share came in at $0.98.
Still, based on the company’s track record, the company will likely publish better results than expected. For one, it has beaten the Wall Street estimates in all quarters since it became public. Investors will watch out for the company’s growth and its guidance. You can read my initial coverage on Zoom stock price in an article I did in 2019.
Medallia is a technology company that helps companies manage and analyze their social media communications. It has a market capitalization of more than $4.3 billion and was also a beneficiary of the pandemic. The stock soared to an all-time high of $48 this year. Since then, it has dropped by 46% to the current level of $25. It serves companies like Hilton, Comcast, Delta, Toyota, Sephora, and IBM.
The Medallia stock price will be watched this week because the company will publish its results on Tuesday after the markets close. Data compiled by SeekingAlpha shows that investors expect the company’s revenue soared to more than $127 million in the first quarter while its EPS came in at $-0.07.
Like Zoom, Medallia has a good record of beating analysts’ forecasts. It has beaten the consensus view in all quarters but one since it became public. Like all growth stocks, analysts will be focusing on the company’s quarterly results and forward guidance.
HP Enterprise (HPE)
HP was one of the top movers last week after the company published strong quarterly results as PC sales rose. This week, its sister company, HP Enterprise will be in focus as the company publishes its earnings. For starters, HP and HP Enterprise separated a few years ago. Today, the two companies have a market cap of more than $36 billion and $20 billion, respectively.
HP Enterprise will publish its quarterly results on Tuesday. Analysts expect the company’s revenue jumped to $6.61 billion in the first quarter as demand for data centers rose. This will be a drop from the previous quarter’s increase to more than $6.83 billion. Still, based on its record, I will not be surprised if the company’s revenue misses analysts forecasts since it has missed 6 times in the past 9 quarters. HPE stock price is about 20% below its all-time high.
Lululemon stock price has been in an unstoppable bull run. The shares have jumped by more than 1,400% since the company went public in 2008. It has jumped by more than 12% in the past 12 months, bringing its total market cap to more than $42 billion. It is one of the best-performing retailers in the past few years.
LuluLemon stock has done well because of its popularity among millennials and the fact that the activewear industry has been in high demand. The company has also managed to outmuscle the likes of Nike and Adidas.
This week, the Lululemon stock price will be in the spotlight since the company will publish its quarterly results on Thursday. Analysts expect that the firm’s revenue jumped to $1.12 billion in the first quarter from $651 million in the same quarter last year.
Like Zoom Communications, DocuSign was one of the top beneficiaries of the pandemic as more companies embraced digital authentication and signatures. This pushed the Docusign stock price to an all-time high of $290.
However, the stock has dropped to $201 as investors move to reopening stocks. The company will publish its quarterly results on Thursday. Analysts see its revenue jumping to more than $437 million and its EPS coming in at $0.28.
Other companies to watch this week are Five Below, Asana, Slack Technologies, PagerDuty, Advanced AutoParts, and Ambarella, among others.