After a strong post-election rally, the market could regain some momentum in the coming week after the US presidential election has finally been called, even as investors track the course of the coronavirus.
The S&P 500 was up more than 7.3% in the past week, while the NASDAQ rose 9%, the best weekly performance since April. These gains were led by technology, communications services, health care and discretionary stocks after it became clearer that Democrat Joe Biden could be the next president but with a split Congress.
With the final counts still being finished and the possibility of Trump-activated lawsuits still looming, here are three stocks to keep on your radar during the upcoming week:
Fast food giant, McDonald’s (NYSE: MCD ) is scheduled to report third quarter earnings on Monday, Nov. 9, before the market open. Analysts, on average, expect earnings per share of $1.91 on sales of $5.4 billion.
Shares of MCD have made a strong recovery since taking a plunge in March, on signs that the company’s massive network of drive-through locations is helping to revive sales during the pandemic.
Its stock is up 60% since Mar. 18, outperforming the Dow Jones Restaurants & Bars Index. The company’s latest earnings report should be able to reflect this strength and the underlying resilience of the McDonald's brand.
Last month, the company reported comparable sales were positive throughout the Q3 that ended on Sept. 30, benefiting from robust average order growth from larger groups of diners as well as strong performance during dinner time. The stock closed at $216.56 on Friday, up 0.12%
2. Beyond Meat
The El Segundo, California-based maker of plant-based burgers, Beyond Meat (NASDAQ: BYND ) also reports its Q3 earnings on Monday, after the close. Analysts' consensus forecast predicts $0.05 earnings per share on sales of $132 million.
Beyond Meat’s business has dramatically shifted into retail and away from restaurants amid the economic lockdown sparked by COVID-19. Before the pandemic, each of the company's segments represented about half of its sales , but that has now moved heavily to grocery channels.
Tomorrow’s earnings report should provide some insight into whether restaurant demand came back after the reopening of the economy during the summer months. Many analysts are hopeful that the company’s strategy to cut the prices of its faux-meat offerings will make its products more mainstream, unlocking strong long-term growth.
Still, even with this uncertain demand environment during the pandemic, Beyond Meat's stock has performed strongly in 2020. The stock closed on Friday at $156.86, after more than doubling in value this year.
The Walt Disney Company (NYSE: DIS ) reports earnings for their fiscal 2020 fourth quarter after the closing bell on Thursday, Nov. 12. Analysts are expecting $14.1 billion in sales and $0.73 loss per share.
The House of Mouse is in the middle of a nasty downturn. Its core business—theme parks and Disney-themed cruises and hotels—which thrives on shared group experiences, is suffering after the global spread of COVID-19 forced the closure of its parks, resorts, movie theaters and cruises worldwide.
One bright spot, however, in the upcoming earnings report could be subscriber numbers on its newly-launched streaming service, Disney+ which is benefiting from the stay-at-home environment.
Shares of the entertainment giant have cut their losses in recent months after falling about 40% in March. The stock is gradually recovering from that dip, fueled by hopes of a quick rebound for all Disney’s businesses once the pandemic is contained. Shares closed on Friday at $127.46.
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