This week, the S&P 500 stocks Advanced Micro Devices(AMD), Samsara (IOT), Cloudflare(NET), DraftKingsDKNG and Floor & DecorFND are all in focus.
The major indexes climbed steadily to slightly last week despite some large daily fluctuations. Along with earnings season, recession fears, lower inflation readings, and Fed rate hike expectation are all key factors.
Sectors and individual stocks can swing wildly, even more so than the overall market. These five stocks offer investors options in multiple sectors, including computer software and chips, gambling, building supplies, and more.
IOT stock rose 4.8% this week to 19.92, and found support at the 21-day line. The stock of Samsara is up by 60.3% for the year.
Samsara has more than doubled in price from January to March. The March 3rd jump was a result of the fiscal Q4 results. According to MarketSmith's analysis, IOT has reached a new buy point of 21.59. Investors can also enter at 20.36.
Samsara, a San Francisco-based company founded in 2015, began selling fleet management software to the transportation industry. Samsara used GPS technology and telematics, which is sensor data collected from trucks, to help customers track routes and monitor vehicle performance. This helped them save money by reducing preventive maintenance costs and fuel consumption.
In 2018, Samsara expanded its product line to include video-based safety. Samsara now offers subscription services in vehicle telematics, video-based safety and other areas. Samsara's focus is not limited to transportation. It also includes sectors like energy and manufacturing. Food and beverage. State and local governments.
Samsara's stock soared on March 3 after the company reported earnings and revenues that exceeded Wall Street expectations. The company reported an adjusted loss of 2 cents versus a 5 cent loss a year ago. Revenue rose by 48%, to $186.6 Million.
Samsara lost 13 cents on every share of $652 million revenue. According to FactSet, analysts expect to lose 7 cents per share by 2023 as sales increase 30% to $846.9 million.
IBD's Computer Software - Enterprise industry group ranks Samsara 17th. IOT shares have a Composite Rating of 91 out of 99. Samsara has a Relative Strength rating of 98. The EPS rating is 55 out 99.
NET shares soared 9.5% to 64.68 this week, a notable increase as other software companies saw their gains slashed or reverse lower. Cloudflare's stock is up 43.1% in 2023, and it has formed a cup with an official buy point of 72.51.
This buy point is 10 cents higher than the high of February 15. Investors could also use 63.19 to make an early entry.
Cloudflare, a San Francisco-based company founded in 2009 and headquartered in San Francisco, speeds up web applications that are routed through their intelligent global network. It also provides security. Cloudflare reports that by 2022, 20% of the Internet will be using its security services.
Cloudflare will report its Q1 financials for 2023 after the markets close on April 27. Analysts anticipate EPS to grow 300%, from 1 cent to 4 cents. Wall Street expects sales to increase 6%, or $291 million.
Cloudflare exceeded Q4 revenue and earnings estimates on Feb. 9. The company's profits increased from zero cents to 6 cents per share. Revenue in the fourth-quarter increased by 42%, to $275 millions.
Cloudflare is ranked 14th among the Computer Software-Enterprise group of IBD. NET shares have a Composite Rating of 93 out of 99. Cloudflare has a Relative Strength rating of 93. The EPS rating is 78.
DKNG shares rose 3% this week to 18,71, after bouncing off the 50-day line. Stocks have soared 64% since 2023.
DraftKings is consolidating with an official buy point of 21.72. Investors who are aggressive could take advantage of a move over the March 31 high price of 19.67 to make an early entry.
In April 2020, the Boston-based sports gambling enterprise became public under the ticker DKNG. DraftKings has yet to make a profit and analysts expect that this will continue until 2026. According to MarketSmith, institutional investors are still skeptical about DraftKings' stock. Nearly 300 funds have already abandoned the company in 2022.
A survey by the Pew Research Center in 2022 found that around 20% of U.S. adult respondents said they had bet on sports in one way or another in the past 12 months. According to the American Gaming Association, commercial betting saw record revenues in 2022.
The company's loss per share was 53 cents, compared to an 80-cents loss the year before. DraftKings' Q4 revenue increased 81%, to $855 millions.
DraftKings lost $3.16 per share in the past year as revenues grew by 73%, to $2.24 Billion. Analysts expect DraftKings to continue growing its revenue, with an average annual increase of 22 percent through 2026.
DraftKings is ranked sixth in IBD’s Leisure-Gaming/Equipment industry group. DKNG has a Composite Rating of 90 out of 99. DraftKings has a Relative Strength rating of 96. The EPS rating is 46 out 99.
AMD shares fell 0.8% last week to 91.75. Advanced Micro Devices shares have fallen around 11% since their March 23 high price of 102.43.
Technically, AMD stock is back within the buy range at 89.04 from a flat basis. However, it is in danger of rounding up a double-digit increase. The pullback was on a low volume. Early entry could be possible if the price moves decisively above the recent downward trend.
AMD, a stock in the S&P 500, competes with Intel, or INTC, to produce central processing units (CPUs) for computers and servers. It is also a competitor of Nvidia (NVDA), in the market for graphics processor units or GPUs for PCs.
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AMD was founded in May 1969 and went public in September of 1972. AMD switched to a fabless business in March 2009. It spun off its factories under the name GlobalFoundries. AMD chips are produced by Taiwan Semiconductor Manufacturing.
AMD released a mixed report on the fourth quarter of 2009, which was delivered on January 31. The company reported better than expected results, but provided a soft sales forecast for the current quarter citing an ongoing weak PC market. The stock of AMD jumped by 12.6% following the report which highlighted strong sales in data centers.
S&P 500 chipmaker AMD earned 69 cents per share adjusted on sales of $5,6 billion for the quarter ending December. AMD's earnings dropped 25% year-over-year, while sales increased 16%.
Wall Street is expecting AMD's earnings per share to drop 50% in Q1 to 57 cents, with revenues expected to decline 10% to $5.32 Billion.
This S&P500 stock has a Composite Rating of 98. The stock's Relative strength Rating is 93. AMD's EPS rating is 80.
FND grew 6.5%, to 98.41 in the last week. Floor & Decor has risen by 41.3% in the past year.
According to MarketSmith's analysis, FND formed a cup with handle pattern that has an official buy point of 99.47. Floor & Decor was flirting with the entry for a few days.
The Atlanta-based flooring retailer beat Q4 sales expectations on February 23 but missed earnings estimates. FND's earnings per share fell 4% to 64c, while sales rose 15% to $1.05b. FND's earnings per share jumped by 13% on the year to $2.76. Revenue increased by 24% to $4.26 Billion.
The wide range of products and low prices offered by Floor & Decor helped the company win over more professional contractors. Last year, professionals accounted for over 40% of sales. This is up from 35% by 2021.
FND opened 32 new warehouses last year. It expects to add another 32-35 this year. This represents a 17%-18% increase in revenue, and will allow FND to gain market share. Total revenue is expected to grow 8%-11.5%, according to the company. The company expects adjusted EBITDA to grow between 5% and 12.7%.
Wall Street is expecting profits to fall by around 2% while sales will increase 9%, to $4.67 Billion. The company anticipates that comparable-store sales will be flat or down by 3% in 2018.
FND is rated 97 out of 100. Relative strength is 92. The EPS rating is 97.
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Investor's Business Daily published the article S&P 500 giant AMD leads five stocks near buy points.