The quarterly earnings calendar continues this week with Estee Lauder (EL) posting results. EL stock bounced back abruptly last week, adding 6.53%. The luxury goods supplier has no room to disappoint shareholders. The stock trades at a P/E of 53.4 times.
In the technology sector, Fabrinet (FN) is a favorite pick going into the earnings report. Shares are stuck in a yearlong trading range of $175 - $250. In May 2024, the firm posted a 10% Y/Y growth in revenue. It earned $2.39 a share (non-GAAP).
Palo Alto (PANW) will need to rely on strong quarterly results to trade higher. Shares benefited from the stumble in CrowdStrike (CRWD). However, the firm potentially failed to capitalize on winning CrowdStrike’s customers in the last quarter.
Watch home repair supplier Lowe’s Companies (LOW) this week. Its competitor, Home Depot (HD), blamed weak consumer spending trends for its disappointing quarterly results. However, the stock reversed losses and bounced back afterward.
Home Depot’s CEO said that lower rates would lead to higher do-it-yourself home repair and renovation activities.
LOW stock would likely snap back, should it post disappointing results. The Fed will likely cut interest rates by at least 25 bps next month. Investors will buy up LOW and HD stock in response.
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