3 US stocks of the week: Costco, FedEx, General Mills

  • Latest Costco results may give insight into US consumer spending behavior
  • FedEx shares plunged 21% on Friday after the company warned earnings would be 33% below average analyst expectations.
  • General Mills navigates supply chain headwinds, passes rising costs onto consumers

The US stock market is expected to remain under pressure this week as investors continue to focus on the ECB’s interest rate decision and the central bank’s latest take on inflation.

The Federal Open Market Committee is expected to hit 75 basis points in its third consecutive meeting, when policymakers will announce the decision at 2 p.m. Wednesday, according to a consensus forecast by economists.

The stock market fell sharply this week after a stronger-than-expected surge made it clear the Fed would need to raise interest rates further to reverse price gains. The {{166|S&P 500} index fell 5% last week, its biggest since the week ending June 17th. It fell 5.8% in five days, its worst week since January.

Inflation and growth concerns aside, investors are also eyeing several key earnings releases this week. There are 3 things to follow:

1. Costco Wholesale

Costco Wholesale (NASDAQ:), one of the largest discount retailers in the United States, plans to report its fourth-quarter fiscal 2022 results after the close on Thursday, September 22. Analysts expect earnings of $71.976 billion, or $4.17 per share.

Costco earnings history with InvestingPro+

Costco earnings history with InvestingPro+

Source: InvestingPro+

Costco’s latest results provide the latest insight into U.S. consumer spending behavior amid concerns over overall economic health and declining purchasing power as inflation nears 40-year high There is a possibility.

Walmart (NYSE:) and Target (NYSE:) presented a mixed picture in their latest earnings reports last month. Earnings plunged 90% in the quarter due to aggressive markdowns aimed at reducing inventory, but higher food sales have improved sales prospects.

Costco’s stock has held up well against the current market downturn. The company’s shares, which closed at $504.14 on Friday, are up about 12% in the past three months.

2. FedEx

FedEx (NYSE:), the world’s largest parcel delivery service, will hold its first quarter fiscal 2023 earnings conference call after the market closes on Thursday, September 22.

The global freight and logistics giant said late Thursday that it expects to trade at $3.44 a share, or about 33% below the average analyst estimate of $5.10, excluding certain items. shares plunged on Friday. He had $23.2 billion in revenue for the period, according to the company’s preliminary earnings data.

fedex weekly chart

Source: Investing.com

Additionally, FedEx withdrew its earnings forecast for 2023, saying macroeconomic trends were “significantly worsening” both internationally and in the United States. He added that it would likely dash hopes of a rebound in sales during the critical holiday season.

FedEx stock closed at $161.02 on Friday after falling 21%. 38% decrease over the year.

3. General Mills

General Mills (NYSE:), maker of Cheerios cereal, Yoplait yogurt and Nature Valley cereal bars, will report first quarter 2023 results on Wednesday, Sept. 21, before the market opens. Analysts expect him to earn $1 per share on earnings of $4.72 billion.

General Mills Earnings History

General Mills Earnings History

Source: Investing.com

The company’s earnings performance this year shows that General Mills is weathering supply chain headwinds and passing on rising costs to consumers.

Minneapolis-based GM is also benefiting from changes in consumer behavior during the pandemic, such as working from home, as well as positive revenue and profit growth from the strong performance of its pet food business.

GIS shares closed at $75.25 on Friday after gaining more than 11% this year.

Disclosure: The author does not own any stock in the companies mentioned in this report.

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