Apple (AAPL): For the most part, Apple has underperformed the NASDAQ for most of the last two months. Since it is the largest tech stock out there and carries a lot of weight in many ETFs and indexes, Apple will need to start moving again if the NASDAQ wants to continue higher. Since the October 4th lows, Apple is up 14.3%. A nice gain, but it has trailed the index, which is up 19.1%. Now you can contribute Apple's recent weakness to its earnings report. It did miss expectations, as iPhones did not sell last quarter in anticipation of the new one. Apple is likely to make up for the lost numbers in this quarter. I would expect as the quarter goes on, analysts will raise their estimates, and this stock will continue to go higher. It's struggled in the $420s a couple of times now. I'm not calling a double top here at all, but Apple is spinning the tires now and needs a swift kick.
Priceline (PCLN): Priceline is another high flying growth company who will be expected to have a tremendous quarter. Although Priceline trades at a relatively decent Forward P/E of 17, that is about 5 points higher than rival Expedia (EXPE). Priceline will need to keep the growth prospects in track, or it will fall just like Amazon (AMZN) and others. Priceline is expected to do $1.42 billion in revenues and $9.30 in EPS. This is their busiest quarter of the year as it covers most of the peak summer season. Those expected numbers are looking for 41% revenue growth and 75% EPS growth over last year's quarter. It will be a challenge, but Priceline has easily beat before. If you look at the EPS beats over the last four quarters (average of 9.3%), a beat of that size could easily put this company over $10 in earnings. Priceline has been mostly stuck in a recent range of $440 to $540, so a great quarter could finally start a breakout to the upside. A bad quarter however, could easily drop this stock $50 to $100 in one day.
Green Mountain Coffee Roasters (GMCR): Green Mountain has had a rough few weeks after notable hedge fund manager, David Einhorn, gave a presentation on why he was short the stock. The company, which was trading in the low to mid $90s, fell into the low $60s in just a few days, and in now trades near the $70 level. Einhorn questioned their ability to grow, as many believe they can, and also stated he was not a believer in the truthfulness of their accounting. Green Mountain gets its chance to redeem itself when it reports earnings after the bell on Wednesday, November 9th. Analysts are currently calling for $760 million in revenues, a growth of 103% over last year's quarter. EPS is expected to rise from 22 cents to 48 cents. GMCR is expected to do its first billion dollar revenue quarter in the next quarter, which is its fiscal first quarter. This report is crucial. If the company's growth is not there, or more accounting issues come out, the stock will get crushed like many others already this quarter. If the report is good, the stock will most likely recover recent losses as short sellers will be scrambling to cover.
Sodastream (SODA): The company that allows you to make your own soda at home will report a critical earnings report before the bell on Wednesday, November 9th. Last quarter, a mixed report coupled with weaker than expected guidance and a confusing conference caused the stock to fall. SODA fell from $68.81 to $45.56 overnight, a loss of 34%, and sent many to wonder if this company's product had become a fad that had reached its top. The company continued lower and was under $30 coming into Friday before a huge rally, which seemed to be mostly short covering. The company is expected to do 54.5 million in revenues (that number is in Euros) and 25 cents per share (Euros). That would compare to 42 million Euros in last year's quarter, and 16 cents per share (Euros). Sodastream will need to report a good quarter and good guidance, as it is expected to see 32% revenue growth this year, but only 15% earnings growth. Like Priceline, Amazon, and others like Crocs (CROX), this company will plummet on anything but a good quarter. And coming off last quarter's stinker, another bad report may put this company in serious jeopardy.
Salesforce.com (CRM): Another tremendous growth story whose quarter could be boom or bust. The application software company that focuses on customer relationship management and other technological services will have its quarter closely watched. An official earnings date has not been set yet, but 3 months from last quarter's report puts you on or around November 18th. This company is always under scrutiny for its Forward P/E ratio of 78 (ending Jan 2013), and that's based on Non-GAAP earnings. If you base it on GAAP earnings, it is substantially higher than that. Salesforce will need another good report to maintain its lofty valuation. Despite projected revenue growth of 33%, earnings per share are expected to decline by 1 cent to 31 cents. With a profit margin of barely 1.5%, any miss on the top line will most likely cause a miss on the bottom line. If this stock misses, watch out below.
Netflix (NFLX): As I recently discussed, the pain has only gotten worse at Netflix. Despite good quarterly numbers, Netflix lost more subscribers than their already lowered guidance, causing shares to plummet even more. The stock has lost 70% of its value in just a couple of months. Management's decision to spin off the extremely profitable DVD business came under fire and was ultimately scrapped. Subscribers are leaving or are eliminating one of the two services as the price hike has gone into effect. Netflix needs to reassure its shareholders in the next month. They need some big announcement, even if it is a short term negative for the stock. Raising some equity would help ease cash flow and financial condition fears. Maybe a new content deal that impresses someone. Or a sale, which is least likely. But in just two weeks, we'll already be halfway through their financial quarter, and they should have a better idea over the next month how many subscribers they continue to lose. If they are forced to come out and lower guidance before the quarter ends again, look out below. There are many out there that believe the value of this stock is $0, and I will continue to be in that camp until Netflix can rightfully prove otherwise.
Bank of America (BAC): I cannot write an article about important stocks for a month and not include a financial. I could have chosen any other name, but B of A is the one I watch the most, so that's why I picked it. Given that they have the most problems with mortgages, they are a pretty important player. They recently announced a new monthly fee for debit card usage, and that has not gone well with customers. But for now, they've got other issues to deal with. This market and the country needs healthy financial firms, so I hope that B of A can start to turn things around. They have bounced 43% off of their most recent low, but then again, they went from the low $6's to high $8s a few months ago, only to find themselves back down at $5. If these gains don't hold, I'm not sure where the next level of support is. Financials have done well lately, but that will only hold if Europe can hold up its end of the bargain.
Groupon (GRPN): The company has not gone public yet, but I believe it is scheduled to debut on Friday. There were rumors out that the company may raise the share price of the offering. This could be a key to the IPO market going forward if it really does well, but it has to do well once it starts trading. That has been a problem connected with a lot of IPOs lately. On CNBC this morning, Jim Cramer advised not buying it in the after market, since the company is only offering a small sliver. These small slivers end up shooting up the first day and then crashing down afterwards, if not crashing down the first day to begin with. I haven't been following the entire journey with this one, but it has definitely received a lot of press and will be a stock to watch in November. For the latest updates on the stock market, visit Source seekingalpha.com
Bank of America (BAC)stock forecast november 2011, Groupon (GRPN) stock predictions november 2011, Netflix (NFLX)stock predictions november 2011, Salesforce.com (CRM) stock predictions november 2011, Sodastream (SODA)stock predictions november 2011, Green Mountain Coffee Roasters (GMCR) stock predictions november 2011, Priceline (PCLN)stock predictions november 2011, Apple (AAPL) stock predictions november 2011, best stock to invest in november 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today
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