2 Red-Hot Stocks That Raised Guidance

After Fed Chairman Jerome Powell hinted that the central bank would begin bond tapering this year, the major benchmark indices—Nasdaq Composite and S&P 500—hit their all-time highs earlier this week. Furthermore…

with considerable improvements in employment and record GDP growth, the Fed believes the economy is well on the recovery path.

This, along with stellar corporate earnings, provided support for valuations and created a basis for stock prices to go up. With the second-quarter reporting season coming to a close, the S&P 500 is on course to achieve its highest quarterly earnings growth rate since the fourth quarter of 2009.

With economic activities returning to pre-pandemic levels, many companies have raised their outlook. Best Buy Co. Inc. (BBY – Get Rating) and Box Inc. (BOX – Get Rating) are the two companies that have raised their growth forecast and are well-positioned to gain significantly in the near term.

Best Buy Co. Inc. (BBY – Get Rating)

BBY sells technology products in the United States and Canada. Domestic and International are the two operational segments of the Richfield, Minn.-based company. BBY offers its products through shops and online under the BestBuy, BestBuy Business, BestBuy Express, BestBuy Health, CST, Geek Squad, GreatCall, Lively, Magnolia, Pacific Kitchen, and Home brands, as well as the domain names bestbuy.com and greatcall.com.

Last month, BBY launched its  e-transportation category online and in selected stores. The collection comprises e-bikes, scooters, mopeds, and accessories from industry leaders such as Unagi, Bird, Segway-Ninebot, SUPER73, SWFT, etc.

BBY’s revenue increased 19.6% year-over-year to $11.85 billion in its fiscal second quarter, ended August 1, 2021. The company’s operating income increased 40.3% from its  year-ago value to $797 million over this period. In addition, its net income increased 69.9% year-over-year to $734 million, while its EPS grew 75.8% from the prior-year quarter to $2.9. The company raised its enterprise comparable sales forecast to 9% to 11% versus the previous growth outlook of 3% to 6% for the second half of its fiscal year 2022.

The $9.43  consensus EPS estimate for the current year represents a 19.2% improvement year-over-year. Furthermore…

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