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3 Stocks That Could Make Huge Moves This Week
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3 Stocks That Could Make Huge Moves This Week

Apr 21, 2017

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Economy & Finance

Brian Stoffel
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Page 1: 3 Stocks That Could Make Huge Moves This Week

3 Stocks That Could Make Huge Moves This Week

Page 2: 3 Stocks That Could Make Huge Moves This Week

Stratasys Stratasys is the second-largest 3-D printing manufacturer in the world, by market cap. It will report earnings Monday morning.

Besides being part of an industry that is largely being sold short, Stratasys shocked investors earlier this month by pre-releasing results that came in well below estimates, and offered guidance that disappointed Wall Street.

Page 3: 3 Stocks That Could Make Huge Moves This Week

Here’s What You Should WatchOver the Short-Term• Stratasys is expected to

report earnings of $0.48 per share.

• The company expects revenues to clock in at $216 million.

• For 2015, expectations are set for $950 million in sales and earnings of $2.14 per share.

Over the Long-TermThere are two parts to the company to pay attention to:1. Listen in to hear what management

plans to do/has already done to right the ship with its Makerbot consumer printer subsidiary—the cause of the wide miss and pre-release.

2. Check on organic growth rates for the company sans Makerbot, should management choose to disclose that number. The company believes this number can be north of 25% for years to come.

Page 4: 3 Stocks That Could Make Huge Moves This Week

AmbarellaAmbarella is the leading chip maker for small recording devices—made most popular by GoPro’s (Nasdaq:GPRO) cameras.

Ambarella’s stock sells for a lofty 35 times earnings. Additionally, many on Wall Street worry that the company’s first-mover advantage will eventually erode and video chips will become commoditized—especially after news surfaced showing that Apple (Nasdaq: AAPL) had plans for similar technology in the works.

Page 5: 3 Stocks That Could Make Huge Moves This Week

Here’s What You Should WatchOver the Short-Term• Ambarella is expected to

report revenues of $59.2 million.

• Earnings are expected to come in at $0.49 per share.

• For 2015, expectations are set for $213 million in sales and earnings of $1.79 per share.

Over the Long-Term• Gross margins have trended down

from over 66% in the past to just over 63% last quarter. Should it fall below the 61%, it would represent a potential commoditization of Ambarella’s chips.

• Listen in to see how the launch of the company’s S2 chip, which is popular in the IP security camera industry, fared. The IP security opportunity is rather large, and has enormous potential for Ambarella.

Page 6: 3 Stocks That Could Make Huge Moves This Week

Abercrombie & FitchAbercrombie & Fitch is a clothing retailer for teens and young adults.

Abercrombie was consistently a victim of foot-in-mouth syndrome under former CEO Mike Jeffries. Along with tons of negative press about the company’s hiring practices, same store sales—the lifeblood of any retailer—fell 14% last quarter.

Page 7: 3 Stocks That Could Make Huge Moves This Week

Here’s What You Should WatchOver the Short-Term• Analysts are expecting

Abercrombie to report revenue of $1.2 billion.

• They are also expecting earnings to come in at $1.16 per share.

• For 2015, expectations are set for $3.8 billion in sales with earnings of $1.58 per share.

Over the Long-Term• Same store sales is the most

vital metric to watch. The company expects mid-to-high single digit losses, so a decrease of just 1% or 2% would be a positive sign.

• No one will have a bigger impact on the stock’s future performance than its new CEO. Listen it to see how close the company is to finding a replacement.