Any earnings reports to watch for this week?

JohnsonAndLewis answered 11 months ago …

Alcoa reports on Monday, Jan. 12. But this week should throw some interesting reports our way that should provide insight into the oil, retail, homebuilding and agricultural sectors.

Family Dollar (FDO) -- reports Wednesday

You have to like a store that's at the bottom of the retail food chain. Cheap is good these days, although you have to always consider Wal-Mart (WMT) as the 800-pound, low-priced gorilla.

FDO shares are bouncing from support and are sitting above their 50-day moving average. While only 40% of analysts rate the shares as a "Buy," the put/call ratio is very low (but this could be a function of low overall option trading volume). Still, FDO is on our Winning Edge radar as a potential bullish play.

Monsanto (MON) -- reports Wednesday

The optimism surrounding MON concerns us. The stock has been stair-stepping lower for six months, although it may have found a base around $70. But expectations are high, perhaps on the assumption that agriculture prices will gain ground early in 2009.

Seven of eight analysts rate the shares a "Buy," short interest is miniscule, and the put/call ratio is forming a trough (which could mean selling is in store). How the stock performs around its 50-day moving average (near $76) could be a key to where it's headed next.

Chevron (CVX) -- reports Thursday

The actual Q4 earnings number probably won't be that important (analysts are expecting 40 cents less than last year), but the outlook for crude prices will. Sentiment is tilting toward optimism, which could hinder the stock. But if crude prices continue to gain ground, that sentiment will be justified.

KB Home (KBH) -- reports Friday

Now that KBH's huge 137% November-December run-up is history, the stock has settled into a trading range between $13 and $16.

The company hasn't met an earnings forecast in seven quarters. The stock dropped 26% in two weeks after last quarter's miss.

But, curiously, sentiment's not as pessimistic as you'd think. None of the seven covering analysts rate the stock a "Sell," though only one is so bold to rate it a "Buy."
And the put/call ratio remains low, meaning that options traders are trying to call a bottom. We're not seeing clear evidence to go one way or the other, especially with such a volatile, low-priced stock.