This Weeks Plays

Earnings releases and market forecast

Trading floor 2

On Tuesday, Brown-Forman (BF/B) is awaited to post 4Q EPS of $0.29 vs. $0.33 the prior year on revenue of $701.5M compared to $744.0M last year. The Co is a producer and marketer of alcoholic beverages, and its current analyst consensus rating is 1 buy, 11 holds and 6 sells, according to Bloomberg. Technically speaking, the RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $65.40 and $61.00). We are looking at the final target of $73.00 with a stop-loss set at $62.00. 

Also on Tuesday, HD Supply (HDS) is anticipated to release 1Q EPS of $0.55 vs. $0.84 the prior year on revenue of $1.4B compared to $1.5B last year. The Co is one of the largest home improvement product distributors in North America and on May 15th, Eminence Capital revealed that it bought 3.0% of the Co's outstanding stock during the first quarter. On May 14th, The Baupost Group disclosed that it acquired 3.8% of the Co's outstanding stock during the first quarter as well, according to 13F filings with the U.S. Securities & Exchange Commission (SEC). From a chartist's point of view, the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $29.66 and $28.84). We are looking at the final target of $37.10 with a stop-loss set at $29.60. 

On Thursday, Adobe Inc. (ADBE) is expected to announce 2Q EPS of $2.34 vs. $1.83 the prior year on revenue of $3.2B compared to $2.7B in the year before. The Co develops software products and on May 27th, Yext (YEXT), a digital media technology company, announced that it is the first technology partner to join Adobe's Exchange program at the premier level, Adobe's highest tier in the program. This partnership will bring Yext's enhanced search features to Adobe's content management systems, for a fee of course. From a technical point of view, the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $368.56 and $341.61). We are looking at the final target of $428.00 with a stop-loss set at $361.00. 

Additionally on Thursday, Lululemon Athletica Inc. (LULU) is likely to unveil 1Q EPS of $0.24 vs. $0.74 the prior year on revenue of $677.3M compared to 782.3M last year. The Co designs athletic accessories and apparel, and on May 21st, the Co stated that it had reopened over 150 of its roughly 500 stores worldwide, with about 200 more locations scheduled to be reopened by about June 4th. Looking at a daily chart, the RSI is bullish and calls for further upside. Prices remain supported by a rising trend line. We are looking at the final target of $393.00 with a stop-loss set at $297.00.

Looking at the S&P 500 CFD, the index has been advancing with strong momentum on a 30-min chart and is continuing to use its 200-period moving average as loose support. As long as the S&P can stay above new support at 3131, we should expect a further upside towards the 3260 and 3295 resistance levels.      



Source: GAIN Capital, TradingView

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