Next Week's Big Stock Movers

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3 Stocks That Could Make Huge Moves

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Two variables will combine to send shares of these companies on a roller-coaster ride.

Transcript of Next Week's Big Stock Movers

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3 Stocks That Could Make Huge Moves

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The Container Store(NYSE: TCS)

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Why Are Investors So Negative?1. Since going public last year, The Container

Store has disappointed investors with both of its earnings reports.

2. Currently, shares trade for 48 times future earnings. That’s expensive for a company whose revenue was flat last quarter.

3. More broadly, investors are worried that other, more dominant e-commerce players could wipe out this bricks-and-mortar play based on lower costs and better convenience.

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Here’s What to WatchWall Street Expectations• Currently, 11% of The

Container Store’s shares are sold short.

• Analysts are expecting the company to report revenues of $174 million.

• Earnings per share are expected to come in at a loss of $0.06.

What to Really Watch• Management has been

talking a lot about the potential of the new customer engagement program. The rollout won’t be complete until August, but listen to the conference call for details on how it is going.

• Historically, the first quarter is the busiest for The Container Store, as it conducts its annual Elfa sale. Look for details on how this year’s sale compared to years past.

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Fastenal (Nasdaq: FAST)

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Why Are Investors So Negative?1. Currently, shares for this industrial and

commercial tool supplier trade hands at 33 times earnings—which is high for a company in a sector without explosive growth potential.

2. Wall Street wasn’t very impressed with last quarter’s earnings report, which management had a lot to do with the weather.

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Here’s What to WatchWall Street Expectations• Currently, 11% of Fastenal

shares are sold short.

• Analysts are predicting revenue of $953 million when the company reports.

• Earnings per share are expected to register at $0.44.

What to Really Watch• Pay attention to same-

store-sales, which is always a key metric for brick-and-mortars. Anything above 6% is a reassuring sign for investors.

• Monthly sales growth is another key metric. If the company was able to grow this by over 6% in April, May, and June, that would be a positive sign for investors.

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Bob Evans Farms (Nasdaq: BOBE)

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Why Are Investors So Negative?1. The last two earnings releases have come in well

below expectations. Management blames a combination of bad weather, high sow prices, and capital expenditures on the company’s Texas distribution plant.

2. Activist investors from Sandell Asset Management have made a bid to place directors on Bob Evans’ board. Though Bob Evans has offered two spots, Sandell wants four, and it remains uncertain how the disagreement will play out.

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Here’s What to WatchWall Street Expectations• Currently, 16% of Bob

Evans’ shares are sold short.

• Revenue is expected to come in at $333 million.

• Analysts are predicting a profit of $0.41 per share.

What to Really Watch• Shareholders should listen

closely to any discussion of Sandell’s bid to place their own people on Bob Evans’ board.

• While some expenses will crimp margins, same store sales will tell investors if the weather really was to blame for the winter slowdown. Any positive momentum is good news for investors.

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