With earnings season in full swing, the market is throwing up all sorts of profitable opportunities. Here’s a look at some of the day’s hot stocks.
SunPower Corporation (SPWR)
First on today’s watchlist is SunPower Corporation. SunPower is an energy services company that designs, manufactures, and delivers solar systems to residential, commercial, and utility customers. The company has been in the spotlight as of late mainly due to industry related tax break initiatives and the media that surrounds them as we head towards warmer weather. At market close yesterday, the company reported its first quarter 2014 earnings, beating consensus across the board. EPS hit $0.49 versus a consensus forecast of $0.32, revenues rose 19% year over year to reach $683.7M versus a consensus forecast of $668.95M.
The stock closed up 1.72% yesterday at 32.02, and looks set to log further gains heading into the weekend. Look for an initial upside target of weekly highs at 32.47. A break above this price would bring April highs at 33.30 into play.
VMware, Inc. (VMW)
Next up is VMware, Inc. VMware a software company that provides cloud and virtualisation software and services, famous for being the first to successfully virtualise the x86 architecture. The company reported its latest earnings on Wednesday, falling pretty much in line with expectations, but that’s not why it’s on today’s list.
Subsequent to its earnings release the stock dropped 9%, likely as a result of longs taking profits. We believe this presents a nice pullback entry at which to gain exposure to this growing industry at a discounted rate. The trade is more of a buy and hold than an intraday flip, with many analysts placing a medium term target on VMware at $110, up from its current price at 96.44. For those looking for an in term target to spread the risk, look to fill the gap down with an initial upside goal of Tuesday’s close at 105.15.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com