This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Big Gain Hangover

FactSet said that 272 S&P 500 companies have reported quarterly results so far, and 65% have come in above the mean estimate. That percentage is a bit skewed, however, because roughly 20% of companies warned ahead of their reports, lowering the bar in many cases. On a valuation basis, FactSet estimates the current 12-month price-to-earnings ratio for the S&P 500 at 12.4, which is below the 10-year average of 14.6.

Switching gears, it's always interesting to look at which stocks don't participate in a broad rally like the one seen on Friday. Research In Motion (RIMM) was one whose presence was notably absent as the stock dipped nearly 2% following a downgrade by Jefferies.

Another stock showing weakness was Best Buy (BBY - Get Report), which lost 1.8% to $23.86 after Bank of America Merrill Lynch cut its price target on the shares to $19, arguing that Apple's ascendance is a problem for the company.

"We view Apple's record-breaking results last week as a very negative indicator for BBY," said the firm, which has an underperform rating on the stock. "Increased sales of Apple products by BBY would be negative for margins. More importantly, with Apple's own retail sales up 61% in the quarter, we believe traffic at BBY stores was hurt, with more people choosing to shop in AAPL stores."

B of A Merrill Lynch also found warning signs in news from RadioShack (RSH) and Amazon.com (AMZN - Get Report), saying Best Buy could be affected by weak Sprint (S) activations the way RadioShack was and that poor sales of game consoles through Amazon bode poorly as well as the firm estimates as much as 13% of Best Buy's revenue comes from gaming.

Best Buy shares are down 32% in the past year, and if Apple's dominance is a bad thing for the company, more pain likely lies ahead for shareholders.

Check out TheStreet's quote page for Best Buy for year-to-date share performance, analyst ratings, earnings estimates and much more.

Moving on to Monday's scheduled news, Coinstar (CSTR) is reporting its fiscal fourth-quarter results after the closing bell and the average estimate of analysts polled by Thomson Reuters is for a profit of 64 cents a share in the December-ended period on revenue of $498.1 million.
3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
RSH $0.31 12.76%
AAPL $121.30 0.00%
AMZN $536.15 0.00%
BBY $32.29 0.00%
NFLX $114.31 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs