Futures Fall: 3 Top-Rated Stocks With Earnings Monday – Investor's Business Daily

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The Nasdaq composite, S&P 500 index and Dow Jones industrial average will start the week near record highs, though stock futures pointed lower early Monday morning. Monday is light for earnings, but it does boast quality. Google parent Alphabet (GOOGL) reports after the market close, ahead of fellow FANG stocks Facebook (FB) and Amazon (AMZN) later this week. Cadence Design Systems (CDNS) also is on tap late while IBD 50 stock Hasbro (HAS) releases results before the market open.

XAutoplay: On | OffBoth Alphabet and Cadence Design Systems are 95+ Composite Rating stocks, and both are within 2% of buy points from proper bases. Hasbro is at all-time highs, but extended from buys.

Futures for the S&P 500 and Dow industrials retreated 0.1% vs. fair value. Nasdaq 100 futures were down about 0.2%.

Alphabet

The Google parent is expected to deliver earnings of $8.15 a share excluding various items, according to Zacks Investment Research. Some estimates have $8.25. Either way, it would be a slim decline from $8.42 a year earlier. Complicating the earnings report will be a $2.74 billion fine from the European Union.


IBD’S TAKE: Stocks barely dipped Friday even as the CBOE Volatility Index hit a record low. Longtime lows in the volatility index, or VIX, are often associated with short-term or even long-term market tops.


Net revenue should rise to $20.825 billion, up 19% vs. a year earlier.

While Alphabet gets the vast majority of its revenue in online advertising, cloud computing has become a growth area. Amazon may be looking over its shoulder regarding its dominant Amazon Web Services division in regards to Google and Microsoft (MSFT), which reported booming cloud gains last Thursday.

Alphabet has a Composite Rating of 95, which means it outperforms 95% of all stocks based on a variety of proprietary IBD ratings including earnings. All-time winning stocks often have Composite Ratings of 95 or better near the start of big runs.

Alphabet shares rose 0.1% to 993.35 on Friday stock market trading, about 2% below a new flat-base buy point of 1,008.71. An aggressive investor could see 994.09 as alternative entry.

Alphabet is up 25% in 2017, but that makes it a laggard next to fellow FANG internet giants Amazon (up 35%), Facebook (43%) and Netflix (NFLX) (52%).

Facebook reports earnings on Wednesday while Amazon is due Thursday.

Cadence Design Systems

The design software maker is expected to report a 14% EPS gain to 33 cents with revenue up about 5.5% to $478 million.

Cadence Design has a Composite Rating of 97. Shares are working on a flat base going back to June 9 with a 35.79 buy point. The stock closed Friday at 34.96.

Fellow software design firms Autodesk (ADSK), Ansys (ANSS), Synopsys (SNPS) are also consolidating near entry areas.

Hasbro

Hasbro, which reports Monday morning, is expected to report second-quarter earnings of 46 cents a share, up 12% vs. a year earlier. Revenue should climb about 11% to $973 million.

Hasbro has benefited in recent years from sales of Walt Disney (DIS)-licensed Marvel and Star Wars toys.

Hasbro rose 0.9% to 115.95 on Friday, closing at a fresh record high. Hasbro has risen 49% in 2017, well extended from buy points.

Hasbro has a 92 Composite Rating.

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