Analysts more optimistic about Nvidia after earnings announcement

3 minutes ago

Following the release of the latest earnings figures, Wall Street analysts are more optimistic about Nvidia than before.

Visible Alpha tracks 23 analysts who cover the chip giant’s stock. Late Tuesday, before the highly anticipated release of the quarterly report, 21 analysts had issued a buy recommendation or an equivalent rating for the stock; today that number is 22.

And the median price target is now $151.73, representing a 21% premium to Wednesday’s close. That’s up from the pre-earnings median of $141.69.

Nvidia reported strong numbers last night, but its stock price is falling today amid concerns that the hot company’s growth may be slowing.

Nevertheless, several analysts today reiterated their optimistic assessments of the stock, some even raising their price targets.

–David Marino-Nachison

Best Buy share price rises after earnings announcement

27 minutes ago

Best Buy (BBY) shares rose sharply on Thursday, hitting their highest level in more than two years after second-quarter earnings beat estimates and the company announced it expects higher-than-expected profit for the full fiscal year despite declining sales forecasts.

The electronics retailer reported better-than-expected net income of $291 million on total revenue of $9.29 billion, narrowly beating estimates. CEO Corie Barry said the company saw encouraging growth in tablet and computer sales during the quarter, although comparable sales fell more than 2% year-over-year.

Best Buy updated its full-year outlook on Thursday, expecting total revenue to be between $41.3 billion and $41.9 billion, down from its previous forecast of $42.6 billion.

Despite the narrowed sales range and an updated comparable sales forecast of a decline of 1.5 to 3 percent (compared to a previously potentially flat to negative 3 percent), Best Buy expects adjusted earnings per share (EPS) of $6.10 to $6.35, an increase from the previous range of $5.75 to $6.20.

Best Buy shares rose 15% in recent trading.

–Aaron McDade

Dollar General falls 30%

1 hour 55 minutes ago

Dollar General (DG) shares plunged Thursday morning after the discount retailer reported weaker-than-expected second-quarter earnings and cut its full-year sales forecast.

The stock lost 30% in recent trading and was by far the biggest loser in the S&P 500. Shares are trading at their lowest level in more than six years.

Dollar General reported second-quarter revenue of $10.21 billion, up 4% from the same period last year but below analyst estimates as same-store sales rose just 0.5%. Dollar General also missed earnings forecasts as net income fell 20% year over year to $374.19 million.

Dollar General CEO Todd Vasos said the company believes the “weaker sales trends” it is currently experiencing can be explained in part by “a core customer feeling financially constrained.” He said the company is taking “decisive action” to improve Dollar General’s value and convenience for customers.

The company lowered its forecast for the full fiscal year and predicted sales growth of between 4.7 and 5.3 percent (previously 6 to 6.7 percent). Sales in the stores are expected to increase by 1 to 1.6 percent (previously 2 to 2.7 percent).

-Aaron McDade

Salesforce price levels to watch given the post-earnings surge

3 hrs 17 mins ago

Salesforce (CRM) shares rose in early trading Thursday after the enterprise software company reported better-than-expected second-quarter results and raised its full-year earnings forecast as customers spent more on the company’s cloud products.

The uptrend following the earnings release positions the stock for a decisive breakout above the upper trendline of a symmetrical triangle and may mark the beginning of a new uptrend.

Given the buying of Salesforce shares following the earnings release, investors should keep an eye on the key chart levels at $287, $311 and $340.

Read our full technical analysis article here.

–Timothy Smith

Major indices likely to open higher

4 hrs 32 mins ago

Futures linked to the Dow Jones Industrial Average rose 0.7 percent.

S&P 500 futures rose 0.3%.

Nasdaq-100 futures rose 0.2 percent.