Ready to make some moves in the stock market this week?
Two big names, Dollar Tree (DLTR) and NIO (NIO), are about to release their earnings, and we’ve got the scoop on what to expect.
Last quarter, Dollar Tree stumbled while NIO raced ahead of earnings expectations. Both stocks have been beaten down but is there hope this week to turn things around.
With new earnings reports due this week, let’s break down whether these stocks are set to soar or sink.
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Dollar Tree: Struggling to Find Stability
Earnings Date: June 5, 2024
Earnings Whisper: $1.41 per share
Consensus: $1.43 per share
Revenue: $7.63 billion
Last earnings season, Dollar Tree disappointed investors by missing expectations.
The retailer posted an EPS of $1.41, just shy of the $1.43 consensus, and the market wasn’t happy. The stock took a 4.9% hit, reflecting concerns over the company’s ability to navigate inflation and supply chain challenges.
As Dollar Tree prepares to announce its earnings, all eyes are on whether it can turn things around. Analysts are expecting an EPS of $1.41, but will the retailer meet or beat this forecast?
With rising costs and stiff competition, Dollar Tree has its work cut out.
The chart shows Dollar Tree’s struggle to maintain any sort of upward trajectory. The bearish trend underscores the risk of further declines. Short-term key levels to watch are the resistance at $119 and support at $116.
It’s going to break this week, and we are expecting shares to continue lower based on the down trend in the price chart.
Breaking below support would signal even more trouble ahead for the struggling stock, so this is a key earnings event for the stock.
NIO: Accelerating Forward
Earnings Date: June 6, 2024
Earnings Whisper: -$0.29 per share
Consensus: -$0.31 per share
Revenue: $1.48 billion
In contrast, NIO impressed last quarter by beating expectations. Reporting an EPS of -$0.29, better than the anticipated -$0.31, the electric vehicle manufacturer saw its stock surge by 8.2%. This beat signaled strong execution and growth prospects, despite ongoing losses.
Looking ahead to its earnings this week, NIO is expected to post an EPS of -$0.29, aligned with previous performance. Investors will be looking to see if NIO can maintain its momentum and continue to exceed market expectations.
The EV sector’s rapid growth provides a favorable backdrop, but competition is fierce.
NIO’s chart reflects a stock on the rise in recent weeks, with recent gains indicating positive sentiment. But the broader trend for the stock remains lower. Until shares can break above the key resistance around $6, we are staying bearish on this one.
Support at $5.00 will be critical to watch. Breaking below that would trigger another round of selling pressure for the struggling stock.
Dollar Tree and NIO are gearing up for pivotal earnings reports this week.
Dollar Tree needs to bounce back from its previous miss, while NIO aims to sustain its positive trajectory with hopes investors reward the stock.
Stay tuned for more updates and analysis as the earnings season unfolds.
S.E.A.L. Alpha Team