Up this week on Wall Street, investors will be keeping a close eye on Nike and Nio who will be stepping into the earnings confessional on Monday and Thursday, respectively. The companies will be providing updates on supply and demand in their industries. Nvidia’s annual GTC event will also be going down and Adidas will be holding an innovation event.
An update at the end of the week from Moderna about the vaccine is also on the agenda, and activists and investors will be holding an annual meeting at Huntman to advocate for a board change.
Without further ado—from semiconductors, to real estate stocks—here are your weekly stock picks.
Californian-based semiconductor manufacturing company Broadcom (ticker: AVGO) is impressively on its fourth consecutive years of annual earnings growth. The company’s annual EPS has already risen by 27% in 2022 and its sales have risen 16% to $7.71 billion, surpassing expectations of $8.31 per share and sales of $7.61 billion.
Broadcom has forecast sales of $7.9 billion for its fiscal second-quarter ending May 1, up from 20% year over year, ahead of analysts predictions of $7.43 billion in sales. “Broadcom’s record first-quarter results were driven by strong enterprise demand, and continued investments in next-generation technology by hyperscale and service providers,” Chief Executive Hock Tan said in a news release. “Our second-quarter outlook projects year-over-year growth to accelerate.”
Old Dominion Freight Line
Trucking behemoth Old Dominion Freight Line (ticker: ODFL) has seen its EPS grow by an average of 60% over the last three quarters. The company has seen sales skyrocket 14%, 47%, 32%, and 31% consecutively over the past four quarters.
While ODFL is currently contending with higher fuel prices and labor costs, according to American Trucking Associations, the US’ steady economic growth points the company in a good direction for truck freight volumes.
As inflation remains a very real threat, investors are pivoting their portfolios to companies that can withstand the economic uncertainty. CoreCivic (ticker: CXW), one of the largest operators of private detention facilities, outperformed the broader market year-to-date, with shares down only 6% compared to the S&P 500 selloff of 12%.
By selling its non-core assets, revoking its REIT election, and extending debt maturities, CoreCivic has helped strengthen its balance sheet and improve its capital structure the company now expects its fiscal 2022 FFO per diluted share to stand around $1.55 to $1.70.
The GEO Group
Real estate stocks are known to be a common hedge against inflation. Publicly traded real estate investment trust that invests in private prisons and mental health facilities across the world, The GEO Group (ticker: GEO) is one of these. Despite a decline in share price, analysts are optimistic about the future of the company, with the median price target of $15 up fron its current price of $6 per share.
The company is focussing on freeing up debt by using its free cash flow and reviewing potential sales of its assets to bolster its cash position.
Disclaimer: Market Buzz contributor as no position in any of the stocks mentioned.
This does not constitute investment advice and is for entertainment purposes only.