5 Stocks To Watch: August 14, 2020
August 14, 2020: Here’s a quick recap on our stocks to watch from Thursday:
- Cisco Systems, Inc. (CSCO): From $48.10 to $42.72.
- LYFT, Inc. (LYFT): From $30.52 to $28.88.
- Applied Materials, Inc. (AMAT): From $66.50 to $65.07.
- Baidu, Inc. (BIDU): From $126.11 to $124.57.
- NetEase, Inc. (NTES): From $474.53 to $464.87.
What we got right: We picked out CSCO because it forecast a weak current quarter. This is the kind of headline that causes the market to react, and it did. Falling from $48.10 to $42.72 by closing bell.
We also picked out LYFT after the announcement that they had a 60-percent drop in active drivers. Despite positive year-on-year numbers, this kind of news was always likely to force investors to make a decision.
Plus, we put a big question mark over which way the market would take BIDU amid U.S.-China tension. BIDU again ranks in our top-five today.
What we got wrong: We picked AMAT before they announced their better-than-expected Q3 results. We followed estimates and the bullish news sentiment and believed it would be one-to-watch. It dipped but makes it again as one of our stocks to watch. So this might become one we got right in the end.
We also picked out NTES, who reported better-than-expected Q2 results before the opening bell. Its bullish news sentiment and a small gain during Thursday’s after-hours trading made us pick it out as one of our stocks to watch, and yet it dropped by a significant $9.66.
This shows the unpredictability of the market. It was one to watch, but not for the reasons we thought.
Here are our top-five stocks to watch during this Friday’s trading.
Today’s #1 Stocks To Watch: iQiyi, Inc. (IQ) – $21.68
IQiyi, Inc. (IQ), reported Q2 results yesterday. With revenue reported at $1-billion, $50-million below the estimate. Earnings per share reported at a loss of $0.28, $0.21 better than the estimate.
However the big news yesterday from iQiyi, Inc. a Chinese video-streaming service like Netflix, was that it was under investigation by the SEC.
A CNBC report revealed that the SEC had requested financial and operating records dating back to 2018, along with documents related to acquisitions and investments.
With a downbeat forecast for Q3 and after-hours trading showing IQ shares falling by 12.4-percent. From $21.68 to $19. IQ had to top today’s stocks to watch list.
Baidu, Inc. (BIDU) – $124.57
Where there is smoke, there is fire. Yeserday we had a big question mark next to Baidu, Inc. (BIDU) because of U.S.-China tensions. That question mark got bigger after their Q2 results.
On the one hand, Baidu, Inc. had upbeat Q2 results. With revenue missing the estimate by $5-million, reporting at $3.69-billion. And earnings per share reporting at $2.08 each, $0.71 over the estimate.
On the other hand, iQiyi is a subsidiary of Baidu, Inc.
During after-hours trading on Thursday BIDU shares dropped by 7-percent. From $124.57 to $115.83.
There’s no doubt it’ll be interesting to see where investors take IQ and BIDU today, hence they both top our stocks to watch top-five.
Applied Materials, Inc. (AMAT) – $65.07
We picked Applied Materials, Inc. (AMAT) yesterday and have done so again despite being surprised by its short-fall.
Its stronger-than-expected results yesterday. Including Q3 revenue of $4.4-billion and earnings per share of $1.06 each. Plus, the combination of an upbeat forecast for Q4, a 3-percent climb in after-hours trading (from $65.07 to $67.05), and bullish news sentiment, meant we had to pick AMAT again in our top-five.
Co-Diagnostics, Inc. (CODX) – $21
Co-Diagnostics, Inc. (CODX) reported second-quarter results on Thursday. With Q2 revenue reporting at $24.04-million, $2.41-million below the estimate, and earnings per share reporting at $0.43, $0.16 below the estimate.
During Thursday’s after-hours trading, CODX shares dropped by 16.2-percent. Falling from $21 to $17.59.
What makes the after-hours trading interesting is that on Wednesday, CODX fell from $22.92 to $19.41. Throughout Thursday it gained 7.3-percent, climbing back to $21.
The fact the price has been up-and-down over the last few days makes CODX a definite stock to watch.
DraftKings, Inc. (DKNG) – $36.05
DraftKings, Inc. (DKNG) are to report second-quarter results before the opening bell today and it doesn’t look promising.
Q2 estimates put revenue at $63.9-million and earnings per share at a loss of $0.19 each. To put the estimate into comparison, Q1 revenue was $88.54-million, with earnings per share at a loss of $0.16 each.
During after-hours trading DKNG fell by 0.8-percent, from $36.05 to $35.75.
If DKNG delivers a downbeat report it’ll be interesting to see how the market reacts.