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Four Companies that Might Move Your Portfolio this Week

Brian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Although it seems like we are deep into earnings season, we are actually just getting started, with less than 15% of all companies already reporting. This upcoming week is vital to this earnings season because there are countless big-name market-moving companies scheduled to report. With that being said, I am looking at four of the most important, not necessarily to themselves, but companies that will impact the market and other stocks.

Restaurant Stocks Could Move this Week

McDonald’s (NYSE: MCD) will announce earnings on Wednesday and is expected to post an EPS of $1.33, which would be $0.01 better than last year. McDonald’s is the largest restaurant company in the market, with a massive presence throughout the world.

A couple weeks ago we saw Yum! Brands trade lower due to contaminated chicken and Chipotle lose great value due to increased food costs. Therefore, I am curious to see how McDonald’s will perform after reports of higher costs and supply issues. As an investor, I’d watch shares of Burger King, Wendy’s, and even larger restaurant stocks such as Buffalo Wild Wings, Panera Bread, and Red Robin after McDonald’s announces its earnings. If strong, then we could see an industry-wide rally; but if bad, then it might cause mass selling within the industry.

Watch for a Secular Move

Procter & Gamble (NYSE: PG) is a secular company that should perform well regardless of the economy. However, secular companies such as P&G are great gauges of the overall economy, and sometimes analysts get ahead of themselves in creating expectations.

The market’s largest personal and household product company will announce on Friday and is expected to post $1.11 per share, which would be a large gain over its $0.89 last year. The stock is currently sitting near 52-week highs and is sure to cause a trickle-down-effect when it reports its quarterly report. Watch for reactions by other secular companies such as Church & Dwight, Colgate, and Clorox, and more importantly, watch for a big reaction from the overall market.

Apple’s Earnings Will Move More than Just Apple

Apple (NASDAQ: AAPL) is the largest company in the world, and despite all of the rumors and speculation, we will finally know on Wednesday the demand for Apple products. Apple is sure to make a big move after announcing earnings on Wednesday, but more important might be the numerous component companies that benefit from strong Apple demand.

The company’s earnings will have a huge impact on companies such as LG Display, Cirrus Logic, Qualcomm, Skyworks Solutions, OmniVision Technologies, and Broadcom among many others. Furthermore, Apple will have a huge impact on the price performance of other tech companies such as Research in Motion and Nokia, two companies that have risen on the belief of a demand change occurring. As a result, Apple will be the most watched company this week, and is sure to have a huge effect on the NASDAQ when it announces its quarterly report.

PC Sales to Move the Market

Last week Intel was crushed after reporting earnings, and on Thursday, Microsoft (NASDAQ: MSFT) will give us another glimpse at a PC industry that is fragile to say the least. We already know that PC sales have declined, however the reports have been inconsistent. For example, some reports say that Windows 8 sales have been weak and others say there has been a recent pickup in demand.

We already know that Intel’s earnings were ugly, yet Seagate Technologies recently increased guidance for its hard disk drives, which are used in PCs. Therefore, no one really knows what to expect from the company, which makes its earnings report very important to the industry as a whole.

Conclusion

Each of these four companies will create mass movement in the overall market, will see movement in their stock, and will affect the performance of other stocks as well. Therefore, as an investor, be aware of which stocks you are holding, and determine if any could be affected by any of these companies that are reporting this week. Because rest assured, these companies will move the market, one way or the other.  


BrianNichols owns shares of Apple. The Motley Fool recommends Apple, McDonald's, and Procter & Gamble. The Motley Fool owns shares of Apple, McDonald's, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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