3 Popular Stocks to Consider as Earnings Approach: DIS, FTNT, SHOP
With representation from the consumer discretionary and tech sectors, here are three of these popular stocks that investors may want to consider as their quarterly reports approach on Wednesday, August 6.
Disney – DIS
Zacks Rank #2 (Buy)
Reporting results for its fiscal third quarter, Disney's
DIS return to prominence as a consumer discretionary leader appears to be around the corner. The media conglomerate has seen its stock rise over +30% in the last year, hitting a 52-week high of $124 a share in late June.
Cost-cutting initiatives and strategic pivots have led to strong performance across Disney's core businesses. To that point, Disney has seen a comeback at the box office with major screen hits like Inside Out 2 and Lilo & Stitch topping $1 billion in global receipts while also seeing increased profitability in its streaming platforms such as Disney+ and Hulu. Like Netflix
NFLX, Disney has cracked down on password sharing and introduced extra-member fees for its streaming services, boosting monetization. Plus, the recent release of the latest Fantastic Four movie and the upcoming Freakier Friday reboot are keeping Disney atop the domestic box office, with 2% and 6% growth expected on its top and bottom lines during Q3.
Reassuringly, DIS still checks the box in regard to value at a reasonable 20.1X forward earnings multiple with a price to sales ratio near the optimum level of less than 2X.
Fortinet – FTNT
Zacks Rank #2 (Buy)
In the tech sector, Fortinet
FTNT is increasing in popularity thanks to its next-generation AI-powered threat detection and post-quantum cryptography readiness, which prepares organizations for a future where quantum computers could break today's widely used encryption algorithms.
Coming off a record Q1 for revenue, operating margin, and free cash flow, Fortinet's top line is thought to have stretched 13% to what would be a Q2 peak of $1.62 billion. Furthermore, Q2 EPS is expected to be up 3% to $0.59, with it noteworthy that Fortinet has fueled investor sentiment by exceeding earnings expectations for a remarkable 29 consecutive quarters dating back to May of 2018. Notably, over the last year, FTNT is sitting on gains of more than +70% with the impressive quarterly EPS beats illustrated by the green arrows in the Price, Consensus, and Surprise chart below.
Shopify – SHOP
Zacks Rank #1 (Strong Buy)
Rounding out the list of popular stocks to watch on Wednesday is Shopify
SHOP, which has seen its stock spike over +15% year to date and now has staggering gains of +140% in the last year. Shopify's commerce platform has continued to grow in popularity after introducing AI-powered tools like its virtual assistant "Sidekick" and trafficguide.ai to help merchants navigate global trade complexities.
Strategic partnerships with Meta Platforms
META, Amazon
AMZN, and TikTok have also expanded Shopify's ecosystem by increasing merchant reach and engagement. Shopify's Q2 sales are projected to spike 24% to $2.54 billion, with Q2 EPS expected to rise 8% to $0.28. Furthermore, analysts expect Shopify's Gross Merchandise Volume (GMV) to reach $81 billion, continuing a streak of seven consecutive quarters of 20%+ GMV growth.
Bottom Line
As it relates to portfolio-worthy stocks to consider, Disney, Fortinet, and Shopify will be three popular companies to watch as their quarterly results approach. To that point, these popular top-rated stocks look poised for more upside, but a post-earnings selloff could lead to even more compelling long-term opportunities.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Walt Disney Company (DIS): Free Stock Analysis Report
Fortinet, Inc. (FTNT): Free Stock Analysis Report
Shopify Inc. (SHOP): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Meta Platforms, Inc. (META): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
5 minutes ago
- Globe and Mail
Keysight Automated Test Solution Validates Fortinet's SSL Deep Inspection Performance and Network Security Efficacy
Keysight Technologies, Inc. (NYSE: KEYS) announces that Fortinet chose the Keysight BreakingPoint QuickTest network application and security test tool to validate SSL deep packet inspection performance capabilities and security efficacy of its FortiGate 700G series next-generation firewall (NGFW). BreakingPoint QuickTest is Keysight's turn-key performance and security validation solution with self-stabilizing, goal-seeking algorithms that quickly assess the performance and security efficacy of a variety of network infrastructures. This press release features multimedia. View the full release here: Keysight's BreakingPoint QuickTest simplifies application performance and security effectiveness assessments with predefined test configurations and self-stabilizing, goal-seeking algorithms to deliver relevant, up-to-date test scenarios with real-world applications. Enterprise networks and systems face a constant onslaught of cyber-attacks, including malware, vulnerabilities, and evasions. These attacks are taking a toll, as 67% of enterprises report suffering a breach in the past two years, while breach-related lawsuits have risen 500% in the last four years. Fortinet developed the FortiGate 700G series NGFW to help protect enterprise edge and distributed enterprise networks from these ever-increasing cybersecurity threats, while continuing to process legitimate customer-driven traffic that is vital to their core business. The FortiGate 700G is powered by Fortinet's proprietary Network Processor 7 (NP7), Security Processor 5 (SP5) ASIC, and FortiOS, Fortinet's unified operating system. Requiring an application and security test solution that delivers real-world network traffic performance, relevant and reliable security assessment, repeatable results, and fast time-to-insight, Fortinet turned to Keysight's BreakingPoint QuickTest network applications and security test tool. Using BreakingPoint QuickTest, Fortinet validated the network performance and cybersecurity capabilities of the FortiGate 700G NGFW using: Simplified Test Setup and Execution: Pre-defined performance and security assessment suites, along with easy, click-to-configure network configuration, allow users to set up complex tests in minutes. Reduced Test Durations: Self-stabilizing, goal-seeking algorithms accelerate the test process and shorten the overall time-to-insight. Scalable HTTP and HTTPS Traffic Generation: Supports all RFC 9411 tests used by NetSecOPEN, an industry consortium that develops open standards for network security testing. This includes the 7.7 HTTPS throughput test, allowing Fortinet to quickly assess that the FortiGate 700G NGFW's SSL Deep Inspection engine can support up to 14 Gbps of inspected HTTPS traffic. NetSecOPEN Security Efficacy Tests: BreakingPoint QuickTest supports the full suite of NetSecOPEN security efficacy tests, including malware, vulnerabilities, and evasions. This ensures the FortiGate 700G capabilities are validated with relevant, repeatable, and widely accepted industry standard test methodologies and content. Robust Reporting and Real-time Metrics: Live test feedback and clear, actionable reports showed that the FortiGate 700G successfully blocked 3,838 of the 3,930 malware samples, 1,708 of the 1,711 CVE threats, and stopped 100% of evasions, earning a grade 'A' across all security tests. Nirav Shah, Senior Vice President, Products and Solutions, Fortinet, said: 'The FortiGate 700G series next-generation firewall combines cutting-edge artificial intelligence and machine learning with the port density and application throughput enterprises need, delivering comprehensive threat protection at any scale. Keysight's intuitive BreakingPoint QuickTest application and security test tool made our validation process easy. It provided clear and definitive results that the FortiGate 700G series NGFW equips organizations with the performance and advanced network security capabilities required to stay ahead of current and emerging cyberthreats.' Ram Periakaruppan, Vice President and General Manager, Keysight Network Test and Security Solutions, said: 'The landscape of cyber threats is constantly evolving, so enterprises must be vigilant in adapting their network defenses, while also continuing to meet their business objectives. Keysight's network application and security test solutions help alleviate the pressure these demands place on network equipment manufacturers by providing an easy-to-use package with pre-defined performance and security tests, innovative goal-seeking algorithms, and continuously updated benchmarking content, ensuring solutions meet rigorous industry requirements.' Resources About Keysight Technologies At Keysight (NYSE: KEYS), we inspire and empower innovators to bring world-changing technologies to life. As an S&P 500 company, we're delivering market-leading design, emulation, and test solutions to help engineers develop and deploy faster, with less risk, throughout the entire product lifecycle. We're a global innovation partner enabling customers in communications, industrial automation, aerospace and defense, automotive, semiconductor, and general electronics markets to accelerate innovation to connect and secure the world. Learn more at Keysight Newsroom and
CTV News
5 minutes ago
- CTV News
Modular building startup Boxabl to list on Nasdaq in US$3.5 billion SPAC deal
In this May 16, 2012 file photo, a taxi passes in front of the Nasdaq MarketSite in New York's Times Square. (AP Photo/Richard Drew, File) Modular building startup Boxabl will go public in the U.S. through a US$3.5 billion merger with special purpose acquisition company FG Merger II, the companies said on Tuesday. Modular housing is widely recognized for its potential to deliver affordable, timely, and scalable housing solutions in both emergency and market-driven contexts. Innovation in the housing market – a segment of the economy most sensitive to monetary policy – is also necessitated by rising housing prices, which hit a record high in June amid elevated interest rates and supply crunch. The deal will allow Boxabl to expand its production capabilities and meet growing demand for its modular building systems, as well as invest in research and development. Founded in 2017, Las Vegas-based Boxabl designs and manufactures foldable, modular homes. Known for its foldable 361 square foot 'Casita' homes, some of the company's housing models can be purchased for as little as US$19,999. Boxabl is led by founders and co-CEOs Paolo and Galiano Tiramani. FG Merger will issue 350 million shares to Boxabl. SPACs, also known as blank-check firms, raise capital through an initial public offering with the sole purpose of taking a private company public. Listing shares via SPAC mergers allows companies to avoid some scrutiny that comes with the traditional IPO process. Boxabl, which has raised over US$230 million to date, has previously also used crowdfunding to raise capital, an alternative fundraising strategy that allows small everyday investors to buy shares in a company. The company also adopted a bitcoin treasury strategy in May, allowing for a percentage of its assets to acquire the cryptocurrency. The combined company will be listed on the Nasdaq under the symbol 'BXBL.' Maxim Group and Winston & Strawn advised Boxabl, while Loeb & Loeb advised FG Merger. --- Reporting by Arasu Kannagi Basil and Ateev Bhandari in Bengaluru; Editing by Shailesh Kuber
CTV News
5 minutes ago
- CTV News
Former X CEO Yaccarino takes helm at GLP-1 focused telehealth firm eMed
Former X CEO Linda Yaccarino testifies during a Senate Judiciary Committee hearing with other social media platform heads on Capitol Hill in Washington, Wednesday, Jan. 31, 2024, to discuss child safety online. (AP Photo/Jose Luis Magana) Linda Yaccarino is taking the top job at eMed Population Health, a telehealth startup focused on GLP-1 weight loss drugs, nearly a month after stepping down as CEO of social media platform X. Yaccarino, an advertising industry veteran, exited Elon Musk's X after two turbulent years during which she tried to revive its reputation among advertisers, who were wary of the platform's content as well as the billionaire's steady stream of controversial posts. Although devoid of any experience in the health sector, she does bring in deep expertise in brand partnerships and digital revenue growth. At NBCUniversal, she modernized the global advertising business over a decade. At X, she helped regain advertiser confidence following turbulence under Musk's ownership. In her first public statement following her appointment, Yaccarino said, 'There is an opportunity to combine technology, lifestyle, and data in a new powerful way through the digital channels that impact consumers directly in ways that have never been done before.' Gil Luria, an analyst at D.A. Davidson, said Yaccarino brings critical experience in consumer-focused digital platforms. 'This new category of apps like Hims and LifeMD are mostly focused on the consumer Ms. Yaccarino's experience is in media, much of that has had to do with creating consumer engagement.' Miami, Florida-based eMed, founded in 2020, partners with employers and government payers to manage GLP-1 usage, a class of obesity and diabetes drugs whose cost burden has been a barrier to a wider insurance coverage. The company claims its platform can cut costs of a weight loss program by up to 50 per cent, offering live, on-demand care without appointments. EMed gained traction during the pandemic with at-home COVID-19 tests and later expanded into diagnostics for strep throat and UTIs, though it has since moved away from those offerings. The company currently employs between 51 and 200 people, according to its LinkedIn page. --- Reporting by Mrinalika Roy, Sriparna Roy and Sneha S K in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva
