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Let's take a look now at some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg Equities reporter Carmen Reinikey. On another pretty busy week for earnings, despite the fact almost everybody's reported already, but we hear from a big name in retail this week, Target on Tuesday. It seems like it's been tough for Target for several quarters now, Carmen.
Yeah, it's true.
So a key figure for them is comparable sales growth. It's been negative in the last three quarters, and it's something that analysts are expecting will fall again. So that's something I'm definitely going to be watching. Shares have actually gotten a little bit of a resurgence so far this year. They're up about seventeen percent after four consecutive years of falling, so that's going to be really important, you know, earnings
generally speaking, move stocks. I'm also watching this after Walmart's report earlier in the month. It forecasts less earnings growth for the year than Wall Street anticipated and had a pretty conservative view of the US economy and sort of unpredictable times for consumers, which I think raised a little bit of a red flag. So Walmart usually does offer kind of conservative guidance at the start of the year
and then raises it in the following quarters. But this is still one that people are really watching, as you know, a bell weather for the US economy, and Target is right in line sort of after that.
Yeah, absolutely, you know, you mentioned that the stock has been on the rise since the start of the year despite all the troubles. Does that really kind of raise the bar for Target when it comes to meeting those earning expectations?
It certainly could. It's the next catalyst for sure that investors will be watching for, you know, deciding if they want to continue to buy the stock or sell. I think the Target's gotten so beat up in the last few years that it's maybe not the biggest indicator that the bar is raised, And especially because we know they're in the turnaround, I think expectations aren't super high for them, so we'll see. I mean, certainly bulls want to see this rally continue, and.
We also hear from another software name CrowdStrike on Tuesday as well. You know, every time I think about CrowdStrike, I think about the outage from a year or so ago. Is that something investors still think about?
You know, that's such a good question. I think the CrowdStrike was able to really move past that quite quickly. It's not something that I've necessarily seen is the biggest
problem for CrowdStrike in the last few months. I mean, certainly the bigger thing that I'm kind of looking at is that we've seen really broad based weakness in software and this was actually one of the stocks that got hit recently when Anthropic announced a new security feature and it's clawed AI models, so it's a cyber security company, and other companies sort of in that space, Cloud Flair, z Scaler sale point slumped, so crowdstrikes regained some of
those losses. It's down still though, nineteen percent almost twenty percent on the year. So that's actually something that I'm looking for sort of most in these earnings is what are they going to say about AI going forward and how they're incorporating it. If they're you know, they are worried about disruption, or if they sort of have plans to maybe integrate it and you know, build their business going forward, you.
Know what that kind of decline and with you know, the way that software stocks have been hammered so far in this discussion around AI disruption, you have to wonder whether after these earnings, maybe some investors might see CrowdStrike as a by opportunity. Is that something that you're thinking about?
Oh totally. I mean we've seen so many valuations kind of come in because of these big sell offs. So if you are a value investor, if you're even just looking for you know, stocks at a discount, there are a lot of names in software that maybe makes sense. So definitely going to be watching there and see if investors you know, hear good things in the report and say, okay, this is definitely the time to buy.
And then on Wednesday, Broadcom reports its results. With all this nervousness around the AI spending story, where is the bar for the AI infrastructure company Broadcom, you know.
Especially after Nvidia. I think it's going to be really interesting to see how investors react to this report. So it's another chip maker, it's also kind of gotten some shine as maybe you know, moving in and kind of grabbing more market share in the chip making space. But that being said, it's also kind of moved sideways. This year.
We've seen you know, investors really rotating out of these sort of big tech companies, these you know, early sort of picks and shovels AI companies and into you know, just maybe safer parts of the market. So broad comes down ten percent so far this year, and I'm I'm just really interested to see how investors react to this report.
Analysts still expect really solid figures out of Broadcom, so they're estimating you know, adjusted earnings per share growth and revenue growth of more than twenty seven to twenty eight percent for this company. So we could see another kind of similar reaction where you know, the results are really good and investors just still aren't convinced and you know, buying shares here.
Yeah, I mean it used to be you know, it's twenty something percent earnings growth was huge, but after in Nvidia reporting something like seventy plus percent, the bar is kind of in a different place for these companies, isn't it totally?
And it's also just under this umbrella of the like wide based anxiety around AI and kind of coming from two sides. I mean, we talked about software people worried about disruption there. But then on the flip side, you know all of the Kapex spending that's you know, boosted in VideA and you know Broadcom would also be a beneficiary of is worrying to investors. They're worried about cyclicality. They're worried that it's going to stop at some point.
So that's really you know, overshadowed one just stocks in the eye trade, but the broader market.
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