3 Stocks That Could Make Huge Moves This Week

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3 Stocks That Could Make Huge Moves This Week

Transcript of 3 Stocks That Could Make Huge Moves This Week

Page 1: 3 Stocks That Could Make Huge Moves This Week

3 Stocks That Could Make Huge Moves This Week

Page 2: 3 Stocks That Could Make Huge Moves This Week

MSC IndustrialMSC Industrial provides a wide range of tools for industrial customers. The company is expected to report earnings on Tuesday morning.

Currently, 10% of MSC’s shares are sold short.

While the company is heavily tied to the global economy—which has experienced some low-level shocks recently, investors are also concerned about long-term margins as larger customers are usually able to negotiate on price.

Photo: MSC Industrial

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Here’s What You Should WatchOver the Short Term• MSC is expected to report

earnings of $0.97 per share for the previous quarter.

• Analysts expect the company to have collected $746 million in sales for the previous quarter.

• For the last quarter of 2015, analysts are expecting the company to bring in $0.99 per share on sales of $758 million.

Over the Long Term• Keeping an eye on margins, as

well as the percentage of sales to smaller customers, is key.

• The higher the margins and percentage of sales from small customers, the better.

• Last year, 70% of sales came from larger customers, which hurt the company because its margins were predictably lower.

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Aerojet RocketdyneAerojet is primarily involved in the manufacture of rocket engines. It also has a real-estate business. The company is expected to report earnings on Thursday.

Currently, 11% of Aerojet’s shares are sold short.

Two senior executives have left the company recently, including former CEO Scott Seymour.

Source: Aerojet Rocketdyne

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Here’s What You Should WatchOver the Short Term• Aerojet is expected to

report revenue of $422 million for the previous quarter.

• Earnings are expected to come in at $0.13 per share for the previous quarter.

• For the rest of the fiscal year, expectations are set for $1.6 billion in revenue and $0.49 per share in earnings.

Over the Long Term• This will be new CEO Eileen

Drake’s first conference call in her new role. Listen to see if she engenders confidence in investors.

• If the company has any new announcements on potential nuclear missile or heavy-launch rocket contracts, this would be huge news for investors.

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PriceSmartPriceSmart is essentially the Costco of Latin America—embracing the warehouse membership model popular in the United States.

Currently, 9% of PriceSmart shares are sold short.

PriceSmart is simply the victim of high expectations. While this is a solid company, expansion is intentionally slow, leaving the company’s P/E of 32 looking very expensive. Photo: PriceSmart

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Here’s What You Should WatchOver the Short Term• Analysts are expecting

PriceSmart to report revenue of $690 million for the previous quarter.

• They are also expecting earnings to come in at $0.74 per share for the previous quarter.

• For all next quarter, expectations are set for $694 million in sales with earnings of $0.80 per share.

Over the Long Term• Same-store sales have slowed

lately—some of it via expected cannibalization. Last quarter it stood at 1.4% growth. Look to see if this metric can start showing more robust growth.

• Expansion in South America is key. With six total locations planned to be opened in Colombia any further expansion would represent a big future opportunity.