S&P 500 Preview – Security Software and Retail Headline Tuesday’s Earnings

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Published: Jun 1, 2020, 18:50 UTC

Crowdstrike and Dicks headline Tuesday's financial results reports

S&P 500 Preview – Security Software and Retail Headline Tuesday’s Earnings

CrowdStrike

CrowdStrike (CRWD) stock is another 2020 winner, gaining 68% year-to-date, and is currently hovering near its all-time highs. This security software company has experienced an upside catalyst in the wake of the pandemic. The company is expected to lose -$0.06 per share on 165.3 million in revenue. This compares to a loss of $0.08 per share in the prior quarter. The trend in the forecast for earnings has improved by 25% over the past 30-days.

The stock price is at an all-time high, and better than expected guidance should continue to buoy the shares. The company is in a good spot as many companies have gone virtual and will need experts in security to make a home office work in conjunction with work offices.

Dick’s Sporting Goods Inc.

Dick’s (DKS) is expected to report earnings on Tuesday, June 2, 2020. Expectations are for the company to lose $0.36 per share on 1.49 billion in revenue. This compares to $1.22 in the prior quarter. Growth estimates are expected to decline by 155%. Earnings forecasts have come down from $0.03 per share to -0.36 per share over the past 30-days.

Sporting goods have underperformed during the quarantine. Consumers have focused on essentials which include groceries and alcohol. As restrictions continue to become relaxed, Dick’s should begin to outperform. A better than expected number should allow the stock price to clear the 200-day moving average and begin to trend higher.

About the Author

David Beckerauthor

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.