It’s another big week for earnings. Here are three stocks investors will want to keep a close eye on in the coming days.
This week will be critical in knowing whether the impressive rally that the stock has been on will continue, or if it could come to an abrupt end.
Year to date, shares of Shopify have risen by more than 130%, and with the stock trading at all-time highs, it’s going to need the help of a strong quarter to keep that bullishness going.
It could be the first quarter that the company sees sales growth fall to under 50%, which could have a big impact on investors.
From a valuation perspective, Shopify has been overpriced for a long time, but the true test for earnings will be whether there’s enough good news in there for investors to keep the momentum going.
A strong showing could mean that the $500 mark could be within reach very soon.
Bombardier, Inc. (TSX:BBD.B) is also expected to release its quarterly results on the first of the month. My top pick for the month of July has, unfortunately, shown little life and earnings day could be what’s needed to get the stock going.
Bombardier has had a challenging year, but with moves underway to shed costs, including the sale of its CRJ Jets, it will be interesting to see how well the company’s bottom line is.
Profits have been hard to come by for Bombardier in the past, and if the company can prove that it can consistently stay in the black, it might be enough to win back some investors.
Although Bombardier has been profitable for five straight periods, prior to 2018 it went four straight years where it posted losses. A strong result this week could send the stock rallying very quickly.
Restaurant Brands International Inc (TSX:QSR)(NYSE:QSR) is another stock that’s expected to release its earnings results this week. On Friday, we’ll have an idea of whether the changes to the Tim Hortons menu have been paying off.
Growth is a big question mark for Restaurant Brands, as the key number that investors will want to be keeping an eye on is same-store sales growth.
In the past, Tim Hortons has struggled to even show a positive growth number. However, with many stores looking to be very busy with long line-ups, it could just be that after all these years the coffee chain has hit a peak in Canada, and so continuing to grow at existing locations may prove very difficult.
Nonetheless, Restaurant Brands is hoping that different menu items could help attract more customers, which is one number that analysts will be looking at very closely when the company releases its results.
The stock has already done very well this year, and entering trading on Monday it was very close to reaching $100 for the first time.
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