This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Four Earnings Reports That Will Help Shape Market Direction (Correct)

Stocks in this article: ZNGA OCZ MOS MON FB YHOO

(Corrects story originally published Sept. 28 to say that Zynga is releasing earnings sometime in October.)

NEW YORK ( TheStreet) -- Key players are reporting earnings next week. These companies demand your attention due to the illumination provided for key industry spaces. They will provide first looks into worldwide expectations for food and feed crops next year, computer storage and social gaming.

MON Chart MON data by YCharts

Monsanto (MON - Get Report)

Background: Monsanto is a leading global provider of technology-based solutions and agricultural products for growers and downstream customers such as grain processors and consumers, in the agricultural markets. The combination of its herbicides, seeds and related genetic trait products provides growers with integrated solutions to more efficiently and cost effectively produce crops at higher yields, while controlling weeds, insects and diseases. Monsanto trades an average of 3.1 million shares per day with a market cap of $48.69 billion.

52-Week Range: $58.89 to $91.95

Book Value: $22.95

Price To Book: 3.89

Monsanto is forecast to report weaker fourth-quarter earnings before the market opens on Wednesday. The consensus estimate is currently expected at a loss of 44 cents a share, doubling the loss of 22 cents during the same period last year.

Last quarter Monsanto's earnings were released on June 27, and the previous closing price was $80.89. Shares are now trading up about 13%.

Analysts are not alarmed by the expected loss and the direction Monsanto is headed. Eleven of the 18 analysts covering Monsanto continue their buy recommendation, six analysts rate it a hold and only one has a sell rating. The average analyst target price is $97.46.

Monsanto is in a strong bull trend. The key moving averages are progressing higher, and shareholders are elated. Trend followers love this pattern and will hold a position until a technical break.

The company currently pays $1.20 per share in dividends for a yield of 1.33%. The dividend growth over the last five years screams "buy me" at 20.4% per year, especially when coupled with expected earnings that support a payout rate under 40%

Monsanto has potential revenue risk with NK603, a genetically engineered corn recently subject to a sales halt in Russia, France, and possibly parts of Africa. A controversial French study suggests rats may have developed tumors as a result of eating the product. The single product is not as important as what impact it may have on the perception of future genetically engineered products.

Overall, I believe Monsanto is a buy on dips. Profits should continue to grow as demand grows world wide.

MON Revenue Chart MON Revenue data by YCharts

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs