Stock markets will open with indices like Nasdaq (QQQ) and the S&P 500 (SPY) at all-time highs. Readers have five stocks to watch.
Paramount Skydance (PSKY) reportedly won European antitrust regulator approval for buying Warner Bros. Discovery (WBD) on April 29. On May 1, Morgan Stanley characterized the merger as a big, bold, and game-changing move. Unfortunately, if the firms fail to realize $6 billion in synergies while growing cash flow, PSKY stock might underperform.
SanDisk (SNDK) gained 19.9% last week to close at $1,187. In its fiscal fourth quarter, the company is forecasting revenue of $7.75 billion to $8.25 billion. It also authorized a $6 billion share buyback. In Q3, data center revenue grew by 233% sequentially.
Clorox (CLX) is the third stock to watch. Its downtrend accelerated last week. In Q3, revenue of $1.67 billion was flat Y/Y. With soaring inflation, the real growth is negative. Full year diluted EPS of $4.78-$4.98 is below the $4.98-$5.86 consensus estimate.
Stryker (SYK) closed at a 52-week low last week. It is still overvalued on a P/E measure. On April 30, Stryker posted revenue of $6 billion (+1.7% Y/Y). These poor results suggest new lows ahead.
Amgen (AMGN) fell by 4.75% last Friday. Although the non-GAAP EPS of $5.15 beat expectations, the strong results failed to lift the stock. Shares are attractive for long-term investors.
Related Stories
