Top 5 Headline Stocks That Are Poised To Move
Richard is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
The first trading week of the New Year is now in the books. And although investors rejoiced the checkmark next to the words "fiscal cliff" on Congress's to do list, it seems not much has changed. Kurt Winters, senior portfolio manager for Whitebox Mutual Funds said it best, "The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome."
In other words, market volatility and uncertainty still rule. There were several companies in the headlines this week for various reasons. While some have erased uncertainties, others have fueled the flames of concerns that already existed – causing more panic. Here are some stocks that are poised to move in the coming week – for your sake, in the right direction.
Sirius XM (NASDAQ: SIRI) – Up 7.2% for the week
No other company can top Sirius XM’s start of the New Year – posting three new 52-week highs in three trading sessions. Shares have reached levels not seen in five years. However, as far as uncertainties are concerned, things are beginning to get much clearer – perhaps a bit too much.
On Thursday, Liberty Media (NASDAQ: STRZA) received the news for which it has waited over three years. The company was granted FCC approval to take control of Sirius XM. Ever since it was awarded 40% of Sirius in exchange for a $530 million loan, Liberty had been growing its position in Sirius by buying on the open market.
As it stands, with an ownership stake of 49.77%, Liberty needs less than 1% more to reach majority ownership. What will follow is the expected spin-off or the RMT as I’ve discussed here. Now it’s only a matter of time for Liberty to show its hand. With shares of Sirius trading 44% above normal volume on Friday, some have speculated that Liberty has begun to buy. We will find out soon enough.
Google (NASDAQ: GOOG) – Up 4.3% for the week
This week, Google scored a major victory in its ongoing legal troubles regarding its business practices, which were accused of “stifling the competition.” The FTC said it reached an agreement with the search giant in which the company will make some tactical adjustments in the interest of fairness.
Within the agreement, Google will allow rivals to access to patents on “critical standardized technologies.” The company also agrees to offer advertisers “more flexibility to simultaneously manage ad campaigns.” This is whether or not it’s on a competitor’s platform or on Google’s AdWords.
Essentially, Google has gotten its hands slapped for being too good - that’s the best way I can put it. Nevertheless, on the news, the stock shot up $5.76 – reaching $729. This is one less uncertainty for investors and the company can now rededicate its attention towards being everything to everyone.
Apple (NASDAQ: AAPL) – Up 3.4% for the week
It was a seesaw week for Apple. After soaring to $555 on Wednesday, the tech giant posted declines in the next two trading sessions – losing 4%. On Thursday, Rob Cihra or Evercore Partners reiterated his Overweight rating on the stock. But cut his price target by $25 to $750 – citing weaker unit sales. Despite this, optimisms remain.
This week, Apple confirmed the date of its Q1 earnings report to be January 23, with the conference call to discuss the results at 5 P.M. EST. This removes one more layer of uncertainty as to “the when.” In terms of “the what” – it depends on who you ask. The Street is expecting another solid quarter with 18% revenue growth.
Analysts are also projecting $13.33 in earnings per share on revenue of $54.5 billion. These numbers are meaningfully higher than Apple’s estimates of $11.75 per share on revenues of $52 billion. On the other hand, the company is known to under-promise and over-deliver. Also, that iPhones have regained its U.S. market lead and represent well over 50% of Apple’s fiscal Q1 revenues, the company should have no problem reaching the high end of its estimates.
Research In Motion (NASDAQ: BBRY) - Up 1.35% for the week
This week, RIM took a page out of Samsung’s strategy and has decided to start selling lower-end or “budget-friendly” phones. The company said its BlackBerry Curve 9315, which will cost $49.99, will become available across the country on T-Mobile’s network starting January 23. That’s interesting because that’s also the date of Apple’s Q1 earnings release – draw your own conclusions.
Nevertheless, the phones will include a $50 mail-in rebate and will come with a two-year service contract. The phones will come preloaded with apps such as Twitter, Facebook and BlackBerry messenger. Unfortunately, there were no new revelations regarding BB10 nor did management attempt to clear up concerns regarding its service revenue changes.
At least from that standpoint uncertainty remain. But then again, the company just reported a solid earnings report - beating Street revenue estimates of $2.6 billion. Likewise, RIM’s loss of 22 cents was narrower than estimates of 35 cents. This is certainly encouraging.
It remains to be seen how the stock responds from here. But certainly with the low-end phones due out in a couple of weeks and BB10 expected to follow, RIM shares are going to become hot commodities.
rsaintvilus is long AAPL and has no position in the stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. 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!