Big Week For Chinese Stocks Coming Up: Investing Action Plan By Investors Business Daily
Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. Chinese stocks will have a busy week as giants like Tencent (TCEHY), Baidu (BIDU) and NetEase (NTES) report earnings while also navigating renewed U.S.-China political tensions. China-based electric-vehicle maker Nio (NIO) also reports amid an explosion of new EV stocks coming to the market.
Stocks To Watch
Adobe (ADBE) is buyable after bounce off the 10-week line and is nearing a 470.71 buy point. Amazon (AMZN) has an official buy point of 3444.39 but could be buyable if it clears a recent post-earnings gap high of 3246.92. Microsoft (MSFT) is a buy now after a test at the 10-week line, but another entry is 217.74. Alphabet (GOOGL) is just below a 1500.67 buy point after rebounding from the 10-week line and topping a short trend line. ServiceNow (NOW) is in a three-weeks tight pattern that could turn into a base, but both have a buy point of 454.80.
Top Chinese Stocks Due
Internet giant Tencent reports before the market open Thursday. The consensus looks for earnings of 41 cents per share, up 11%, on revenue of $16.1 billion, up 24%. Baidu and NetEase also report Thursday. The reports come after President Donald Trump signed two executive orders giving Americans 45 days to sever all ties with WeChat, Tencent’s widely used messaging app. Trump also targeted TikTok. Livestreaming gaming platform Huya (HUYA) reports Tuesday morning. Wall Street is looking for earnings of 12 cents, up 9%, on revenue of $379 million, up 29%. Other China stocks reporting include Joyy (YY) late Wednesday, and Tencent Music Entertainment (TME) early Monday.
Hot EV Maker Nio To Report
The so-called Tesla (TSLA) of China reports early Tuesday and should narrow per-share losses to 34 cents from 45 cents a year ago as revenue vaults 121% to $485.92 million. Nio grew deliveries 190.8% in Q2, topping the 10,000 mark in a single quarter for the first time as the overall Chinese auto market recovered from coronavirus shutdowns. Along with earnings, Wall Street will look to learn how much Nio’s financial situation is improving after it received big capital infusions, how its battery swap program is doing, and how its just-launched EC6 electric coupe SUV is faring against the Model 3 in China.
Cisco Earnings To Drop
The networking systems giant reports fiscal Q4 earnings after the market close Wednesday, and analysts expect EPS will fall 11% to 74 cents while revenue drops 10% to $12.08 billion. Demand for WebEx video services should be a bright spot amid the shift to remote work. But, its core network switching business could be impacted by a drop in corporate spending. Cisco Systems (CSCO) is still waiting for China to approve its acquisition of Acacia Communications (ACIA).
Cannabis Stocks
Canopy Growth (CGC) reports early Monday, and per-share losses are seen widening to 29 cents from 23 cents a year ago, as revenue grows 9% to $73.7 million. Tilray (TLRY) reports late Monday. Wall Street expects per-share losses to narrow to 27 cents from 32 cents a year ago, as revenue climbs 21% to $55.3 million. The cannabis companies report as the coronavirus pandemic disrupts the Canadian industry’s plans to expand in the U.S. The industry is also struggling with layoffs and low weed prices, scaling back its ambitions and taking big charges on overvalued assets.
Boeing Orders, Deliveries
The aerospace giant will announce July orders and deliveries on Tuesday. The 737 Max is still grounded with deliveries on hold, and now even widebody planes like the 777 and 787 that have been Boeing‘s (BA) moneymakers are vulnerable. Airlines have been canceling and deferring orders as demand for aircraft plummets due to the coronavirus pandemic. Pricey long-haul widebodies are especially shaky as international travel recovers more slowly. Boeing delivered just 20 commercial jets total in Q2, the lowest number for a quarter since 1977.
Key Oil Updates Coming Up
Several oil market reports are due as the rebound in crude prices appears to be stalling due to a resurgence in Covid-19 cases. The Energy Information Administration will release its Short Term Energy Outlook report on Tuesday. OPEC’s monthly oil market report will be released Wednesday. The EIA will also release weekly stockpile and production data Wednesday. The International Energy Agency will release its monthly report Thursday.
Other Earnings
- Lumentum Holdings (LITE) reports fiscal Q4 earnings early Tuesday. Analysts expect the maker of optical communications devices to report EPS of 83 cents, down 9%, as revenue falls 14% to $349.2 million.
- ZTO Express (ZTO) reports late Wednesday, and the Chinese shipping company’s EPS is seen increasing 12% to 28 cents, with revenue up 17% to $915.4 million.
- Lyft (LYFT) reports earnings after the close Wednesday, and the ride-sharing company’s per-share losses are seen widening to $1.06 from 68 cents a year ago, as revenue plunges 61% to $339.6 million.
- Applied Materials (AMAT) reports fiscal Q3 results late Thursday, and the chip equipment maker’s EPS is seen rising 28% to 95 cents as sales grow 16% to $4.13 billion.
- DraftKings (DKNG) reports early Friday, and the recently public online sports betting firm is seen posting a loss of 10 cents per share on revenue of $70 million.
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