8 Stocks To Watch This November 2020: EL, CLX, And More
Looking for stocks to watch this November 2020? You’ve come to the right place.
Here we’ll be adding fresh juicy picks each week, perfect for your due diligence throughout the month. So bookmark now and come back regularly.
Disclaimer: This is not financial advice. Our stocks to watch list is purely to help you discover new stocks to research and do due diligence on.
CHECK OUT: Our October 2020 stocks to watch list.
1. Stock To Watch Right Now: Eli Lilly and Company (LLY)
HEADLINES: On Monday, November 9, 2020, Eli Lilly and Company (LLY) revealed that their antibody treatment for COVID-19 received emergency use authorization FDA (Food and Drug Administration). Positive news that made share value climb.
- At the closing bell on November 9, LLY was valued at $142.26. After the news, and during the after-hours trading session, LLY gained 3.1-percent. Climbing to $146.75.
- Despite the positive news, the sentiment towards the stock remained bearish. With only 67-percent positive news.
- One possible reason for this is that during the company’s Q3 report, they failed to meet the estimates:
- Revenue was reported at $5.74-billion, $169-million below-the-estimate. With earnings per share reported at $1.54 each, which was $0.17 below-the-estimate.
- In October 2020, research firms Morgan Stanley and JP Morgan maintained their overweight status at target values of $170 and $200 respectively. Research firm Truist Securities initiated coverage on LLY, with a buy status at the target value of $180.
2. Herbalife Nutrition Ltd (HLF)
HEADLINES: On November 5, Herbalife Nutrition reported stronger-than-expected third-quarter results and investors initially reacted positively.
- Herbalife Nutrition Ltd reported revenue of $1.52-billion, an impressive $112-million above-the-estimate, and earnings per share of $1.15 each, $0.27 above-the-estimate.
- The company also announced that Q4 sales could potentially reach 20-percent growth and adjusted their 2021 earnings per share guidance: $3.65–$4.15 vs $3.95 estimated.
- During after-hours trading on the 5th, HLF shares jumped 6.2-percent, from $48.97 to $52.
- In August, research firm CitiBank maintained their buy status on HLF with a target price of $56.
- Despite the positives, sentiment towards HLF remains bearish.
2. QUALCOMM, Inc. (QCOM)
HEADLINES: Qualcomm crushed their fourth-quarter estimates in early November. Additionally, the company stated that the demand for 5G smartphones will double the company’s shipments next year. News that sent investors into a frenzy.
- On Wednesday, November 4, 2020, Qualcomm, Inc. delivered a better-than-expected Q4 report. With revenue of $6.5-billion, a massive $562-million above-the-estimate, and earnings per share of $1.45 each, $0.28 above-the-estimate.
- Additionally in the Q4 report, the company announced Q1 2021 forecast adjustments. With Q1 sales at $7.8-to-$8.6-billion versus $7.13-billion estimate. And the EPS at $1.95-$2.15 versus $1.68 estimate.
- During after-hours trading on the 4th, QCOM shares jumped 13-percent from $128.97 to $145.77.
- On November 5, research firm KeyBanc maintained their overweight status on QCOM at the price of $175.
- Sentiment towards QCOM is bullish, with 82-percent positive coverage.
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3. PayPal Holdings (PYPL)
HEADLINES: PayPal beat estimates in their third quarter results and yet pre-market trading puts them down 5.7-percent.
- On Monday, November 2, 2020, PayPal delivered a better-than-expected Q3 report. With revenue of $5.46-billion, $29-million above-the-estimate, and earnings per share of $1.07 each, $0.13 above-the-estimate.
- Additionally in the Q3 report, the company announced 15.2-million new accounts, a 30-percent payment growth, and a sales growth of 20-to-21-percent year-on-year.
- Despite the above positives, pre-market trading on November 3 put PYPL down 5.7-percent. From $187.88 the day before to $177.
- Research firms KeyBanc and Morgan Stanley maintained their status of overweight on PYPL, setting targets of $215 and $229 respectively.
- Sentiment towards PYPL is bullish, with only 83-percent positive coverage. Despite the pre-market dip, PYPL is one of our top stocks to watch this November.
4. Arista Networks (ANET)
HEADLINES: Arista Networks delivered third quarter results early November, beating the estimates and sharply rising share price since October 30, 2020.
- On Monday, November 2, 2020, Arista Networks delivered a better-than-expected Q3 report. With revenue of $605.43-million, $24.1-million above-the-estimate, and earnings per share of $2.42 each, $0.21 above-the-estimate.
- Arista Networks also issues an update to its fourth-quarter sales estimates, revising revenue from $615M-$635M to $609.26M.
- This specificity clearly piqued investor interest, as ANET shares jumped 10.6-percent during pre-market trading on November 3, 2020. Increasing closing bell value on the 2nd from $216.12 to $239.
- Research firm Morgan Stanley increased its status from equal-weight to overweight in late October, setting the target value at $250.
- Over the last several months’ ANET has been choppy. In July, ANET was $259.77. It reached a low of $200.64 by September 20, climbed to $227.61 by October 4 before falling again to $208.90 by October 20. This most recent spike could continue that choppy trend or be a change in momentum. This uncertainty makes it a definite stock to watch.
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5. Estee Lauder Companies, Inc. (EL)
HEADLINES: Estee Lauder Companies, Inc. announced better-than-expected results at the start of the month.
- During trading on Friday, October 30, EL stock fell from $223.56 to $216.52, before recovering to $219.66. This represented a 1.6-percent drop by the closing bell.
- In the November 2, Q1 2021 report, revenue was reported at $3.56-billion, $112-million above-the-estimate. Earnings per share were $1.44 each, $0.54 above-the-estimate.
- Research firms Deutsche Bank and Stifel maintained their buy status for EL in late October, with $248 and $245 targets respectively.
- Additionally, the company increased its quarterly dividend from $0.48 to $0.53 per share.
- Sentiment towards EL remains bearish, with only 67-percent positive coverage. Considering the latest trading news, it is likely sentiment will improve.
6. Clorox Company (CLX)
HEADLINES: Another company that announced results early in the month was The Clorox Company. And like Estee Lauder, they beat-the-estimates.
- On Friday, October 30, CLX stock dipped from $209.44 to $205.19, before recovering to $207.43. Then during after-hours trading, the stock dipped again to $206.80.
- In the November 2, Q1 2021 report, revenue was reported at $1.92-billion, $166-million above-the-estimate. Earnings per share were $3.22 each, $0.90 above-the-estimate.
- Research firm J.P. Morgan downgraded its status from overweight to neutral in October, setting a target value of $235.
- Additionally, the company disclosed an estimated 5-percent to 9-percent sales growth in 2021. With an updated earnings per share estimate of $7.70-$7.95, from $7.69.
- Sentiment towards CLX is bullish, with 85-percent positive coverage.
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7. Nielsen Holdings N.V. (NLSN)
HEADLINES: Nielsen Holdings announced late October that the company planned to sell its consumer goods data unit to Advent International for $2.7-billion. This impacted stock value, but a better-than-expected early November report gave NLSN a boost.
- When the consumer goods data sale announcement was made, NLSN was valued at $13.75. During the day’s trading, shares fell 2.5-percent to close at $13.52.
- In the November 2, Q3 2020 report, revenue was reported at $1.56-billion, $40-million above-the-estimate. Earnings per share were $0.43 each, $0.40 above-the-estimate.
- Research firm Truist Securities maintained their buy target of $20 earlier in the year, while Wells Fargo and Morgan Stanley called NLSN overweight at $19 and $17 respectively.
- Additionally, the company has updated its 2020 financial year values. With EPS moving from $1.50-1.62 to $1.54-1.62 vs $1.55 and sales guidance moving from $6.16-billion to $6.24-to-6.37-billion vs $6.18-billion.
- Sentiment towards NLSN remains bearish, with 70-percent positive coverage yet it remains one of our early November stocks to watch.