This week will be a quieter week for earnings, with Oracle, Lennar, Adobe, and Kroger due to report. General Motors and video-game company Activision Blizzard are hosting annual shareholder meetings, and there are also investor days from NRG Energy and DXC Technology.
But the big event on everyone’s mind is the Federal Reserve’s rate-setting committee’s June meeting, happening this Tuesday and Wednesday. The meeting could reveal crucial info on the future of inflation and bond purchases.
From cloud computing, to cinema stocks, to used-car retailers, here are the top stock picks for the week.
Warren Buffet is usually one to shy away from tech stocks, so when the Oracle of Omaha took a new holding in cloud-computing company Snowflake (ticker: SNOW), when it went public in September last year, it turned a lot of heads.
Buffett’s reason for investing in the cloud-computing company? The fact that the cloud-computing industry is expected to grow at a compound annual growth rate (CAGR) of 18% from 2019 to 2027 is a good start.
And on Thursday, Snowflake announced it’s aiming to reach $10 billion in product revenue by January 2029, compared to $554 million from the January 2021 fiscal year.
It’s no secret that online shopping was the preferred way of acquiring goods in 2020. Online used car retailer Carvana (ticker: CVNA), catapulted its sales and revenue last year, and thanks to a huge amount of interest from investors, the stock gained a massive 740%.
Although the company, which has disrupted the used-car space by providing fully-automated vending machines that dispenses vehicles to buyers, grew to become the US’s second biggest used car dealer in the states, it also lost $462 million over the year do to its heavy focus on expansion.
If investors can be patient, the company’s big plans for growth are likely to pay off, and its margins give investors a good reason to still be excited about momentum for the long term.
Being able to sit down with a giant box of popcorn and watch something on the big screen seems like a distant memory. Despite meme stock AMC Entertainment (ticker: AMC) rallying this year, the movie theatre industry was one of the hardest hit during the pandemic. Even Hollywood’s famous ArcLight shuttered.
But with the vaccine being rolled across the globe, things are finally looking up for the world for the world of movie theatres. And that includes Canadian cinema company Cineplex (ticker: CGX).
Prior to the pandemic, the company was seeing great success, generating cash flow of over $300 million in 2019. And at only just over $16 a share today, investors can currently nab the stock at more than a 50% discount to its pre-pandemic price.
If you haven’t already heard, semiconductors are in short supply. Which is bad for a lot of very important sectors, including renewable energy, electric vehicles, and computers. But not for supply-chain management software.
Canadian supply-chain-management software company Kinaxis (ticker: KXS) helps plan supply chains—including how much product to make, where to make it, and risk management for what to do if things go wrong. It’s basically a best friend to every company that’s worried about its supply and its unique service sets it apart from competitors in the industry.
With the stock trading at only $117, a 40% discount from its 52-week high, and the economy set to bounce back, as well as many industries seeking help with their supply chains, it’s a great stock to buy while it’s still cheap.
Disclaimer: Market Buzz contributor Shelley Mason has no position in any of the stocks mentioned.
This does not constitute investment advice and is for entertainment purposes only.