After the price development on the stock markets in 2021, investors will start the new year optimistically. The current narrative assumes that U.S. growth momentum will remain strong enough to counter another blow from the fast-spreading Omicron variant of the coronavirus.
Both the rate and the rate rose about 27% in 2021, beating even the most optimistic outlook at the start of the year. The market development in the new year is expected to be more dependent on solid earnings growth and a strong US economy than on the further development of the COVID pandemic, which is entering its third year.
However, the pressures in early 2022 could include the prospect of a faster unwinding of the Fed’s monetary stimulus, accelerating inflation, labor shortages, supply disruptions and valuations near five-year highs.
In this environment of general optimism for US stocks, the following are three stocks we’ll be watching over the coming week as each reports its latest gains:
1. Bed bath and more
US home improvement and housewares giant Bed Bath & Beyond (NASDAQ 🙂 reports its third quarter 2021 results on Thursday, January 6, before the opening bell. Analysts expect the retailer to see $ 0.017 per share in sales of $ 1.96 billion.
All charts powered by TradingView
The stock, which is heavily favored by the meme crowd, remained extremely volatile in 2021 as the army of retail investors hyped stocks on chat rooms like StockTwits. BBBY ended the year at $ 14.58, 80% less than its high early last year.
Developments that helped boost the stock include the launch of a digital marketplace that sells third-party goods, as well as a partnership with grocery chain Kroger (NYSE :), which will offer some BBBY products starting this year.
However, the ongoing challenge for Bed Bath & Beyond is to move forward at a healthier pace when the e-commerce onslaught is forcing many brick and mortar retailers out of business.
2. Walgreen Boots Alliance
Walgreens Boots Alliance (NASDAQ :), the second largest pharmacy operator in the US, will also announce its first quarter results for fiscal year 2022 on Thursday before the market opens. Analysts expect earnings per share of $ 1.35 for the quarter on revenue of $ 32.46 billion.
The Deerfield, Illinois-based company signaled over the summer that investments would slow and increase in the coming months, as the sales surge associated with COVID-19 was likely over.
But the recent surge in infections caused by the Omicron variant could change that outlook as U.S. health officials strongly recommend a third booster and more people flock to pharmacies to get tested.
The company benefited from the pandemic as it gave Americans millions of vaccines that when visiting pharmacies have a tendency to spend on other items as well. Walgreens stock ended the past year at $ 52.16 after gaining more than 30% in 2021.
3. Constellation marks
The US manufacturer of corona beer, Constellation Brands (NYSE :), will also announce its results for the third quarter of 2022 before the market opens on Thursday, January 6th. Analysts forecast earnings per share of $ 2.21 on sales of $ 2.28 billion.
As the Victor, New York-based wine, beer and spirits maker manages to weather the difficult operating environment it encountered during the pandemic by reducing the decline in on-site, restaurant and bar sales from off-site sales Business premises in his beer business have escalated.
CEO Bill Newlands told investors in October that the momentum of the company’s major imported beer brands is helping to gain market share in the upper segment of the US beer market. He added:
“Most of our growth continues to be driven by Modelo Especial, aided by strong consumer demand for Corona Extra and Pacifico, and we expect this to continue for the foreseeable future.”
STZ stock closed at $ 250.97 on Friday, the last trading day of 2021, after gaining 14% last year.