Baidu Inc (NASDAQ:BIDU), Expedia, Wynn, Deckers, Fortinet – 5 Stocks To Watch Today Not Named Amazon or Google
Baidu Inc (BIDU)
This afternoon we get results from Google and its Chinese counterpart, Baidu. Baidu shareholders haven’t necessarily shared the same experience as those holding Google. The stock is down 13.2% since the start of the year despite consistently topping earnings expectations quarter after quarter. The volatility is expected to continue through its report with earnings expectations look bleak. In June, Baidu cut its quarterly revenue guidance after the company was forced to modify its core paid search business. Investors will be paying close attention to search but also Baidu’s online to offline initiatives. Baidu has invested heavily in this side of the business and investors have been patiently waiting for a timetable of when it will turn profitable.
Expedia Inc (EXPE)
Expedia and Priceline are neck and neck in the race for supremacy in the online travel industry. Expedia’s report today will be a benchmark for Priceline in the next couple weeks. Expedia itself is coming off a promising first quarter, topping expectations on both the top and bottom line. The company has been quick to snatch up its competitors and consolidate the industry. Past acquisitions such as Travelocity and HomeAway provide Expedia with new revenue streams that aren’t likely to cannibalize its business. Based on the success of the airlines, travel trends also appear to be picking up, which bodes well for Expedia. The biggest concern however, is Brexit and what it means for future travel and currency translation. Any indication of it having an adverse impact on future earnings could send the stock in a tailspin.
Wynn Resorts, Limited (WYNN)
After Las Vegas Sands beat expectations this week, it appears to be smooth sailing for Wynn Resorts. Its main focus heading into this report will be the turnaround of Macau. If gaming and non gaming segments in the region show some sign of life then investors should have nothing to worry about. Also any forecasts or indications on the prospects of Wynn Palace, set to launch next month, could put it over the top. Similar to LVS, a hint of growth is likely enough to push this stock up.
Deckers Outdoor Corp (DECK)
After a strong fourth quarter Decker appears to be shifting back to erratic earnings. Earnings expectations have significantly declined after guidance was revised downwards. The warm months typically don’t bode well for Deckers which relies on UGG boots to carry revenue. Deckers has made strides on improving year round sales. Its Teva brand is summer oriented and should alleviate some of the declines in Ugg sales. The biggest concern however, is its ability to improve comparable DTC sales. Weak direct to consumer channels are often an indication of an undeveloped ecommerce platform. If Deckers can show improvement in this area and shed light on a strategic long term vision, it would be a huge win for investors.
Fortinet Inc (FTNT)
Cyber security and network solutions continue to be one of the fastest growing sectors in the tech industry. It poses an imminent threat that a number of companies are looking to address. Fortinet along with Check Point, Juniper and Palo Alto Networks are among the key startups focusing on providing network security solutions. As the industry becomes more cluttered, Fortinet and its peers will start to see slower growth. Nonetheless Fortinet has been diligent on fending off those concerns. Frequent updates and product releases on top of new partnerships are expected to pay off moving forward.
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