The Week Ahead(SE, COST, AAV and FNV Earnings; BoC Policy Announcement and Labour Data)
During the first week of March in the US, Fed Chairman Jerome Powell's testimony on Capitol Hill, scheduled for Wednesday and Thursday, and the government's February jobs report on Friday will be the main focus for investors. Besides, $Sea(SE.US$ is set to release its fourth-quarter earnings on Monday while $Broadcom(AVGO.US$ and $Costco(COST.US$ will announce on Thursday.
Similarly, in Canada, the central bank's policy announcement on Wednesday and the jobs report released on Friday will also attract investor's attention. Additionally, earnings reports from a bevy of energy stocks will be this week's highlights, keep an eye on $Advantage Energy Ltd(AAV.CA$ , $Franco-Nevada Corp(FNV.CA$ and $Tourmaline Oil Corp(TOU.CA$.
Earnings Calendar
Sea Earnings Preview
Singapore-based tech conglomerate Sea Limited is poised to reveal its Q4 results before the market opens on Monday. Despite its shares climbing roughly 20% since the ending of 2023, the stock remains down over 22% year-over-year.
Market sentiment toward the stock is positive, with Seeking Alpha's Quant Rating system and Wall Street analysts recommending a Buy.
Paul Franke, a Seeking Alpha analyst, notes that Sea Limited is transitioning to a self-funded growth strategy, boasting a strong balance sheet, improving profit margins, and its most attractive valuation ever.
Consensus EPS Estimates: -$0.06
Consensus Revenue Estimates: $3.54B
Earnings Insight: Sea Limited has beaten EPS and revenue estimates in 6 of the past 8 quarters.
Costco Earnings Preview
$Costco(COST.US$ is set to announce its quarterly earnings after Thursday's market close, with analysts anticipating a year-over-year increase in both revenue and earnings for the retail giant.
While Wall Street analysts are optimistic with a Buy rating, Seeking Alpha's Quant Rating system has issued a more conservative Hold rating.
SA analyst Black Sheep argues that Costco is currently undervalued by 21%, setting a price target of $905. The company has outperformed the S&P 500, delivering a 26% return over the past three months, Black Sheep noted, while praising what it calls Costco's strong business model, robust financial performance and promising growth prospects.
Consensus EPS Estimates: $3.63
Consensus Revenue Estimates: $59.13B
Earnings Insight: Costco has exceeded revenue expectations 5 of the past 8 quarters, missing EPS estimates only twice in that span.
Advantage Energy Earnings Preview
$Advantage Energy Ltd(AAV.CA$ is poised to reveal its Q4 results on Monday. RBC Capital analyst Michael Harvey raised the firm's price target on Advantage Energy to C$11 from C$10 and keeps a Sector Perform rating on the shares. Moreover, Scotiabank raised the firm's price target to C$17 from C$16 and keeps an Outperform rating on the shares.
Consensus EPS Estimates: C$0.18
Consensus Revenue Estimates: C$155.30M
Franco-Nevada Earnings Preview
$Franco-Nevada Corp(FNV.CA$ is set to report its Q4 results after Thursday's market close. Scotiabank lowered the firm's price target on Franco-Nevada to $141 from $159 and keeps a Sector Perform rating on the shares. The analyst assumes the company's Cobre Panama mine will restart in Q1 of 2025 after Panama's president ordered Cobre Panama to be closed following the Supreme Court's ruling that the mine's new contract was unconstitutional.
Consensus EPS Estimates: C$0.70
Consensus Revenue Estimates: C$284.07M
Economic Calendar
In the US, macroeconomic issues will be the main focus for investors.
On Wednesday and Thursday, Fed Chair Jerome Powell is scheduled to provide his semiannual monetary policy update to the House of Representatives and the Senate, respectively.
Investors will be closely analyzing these testimonies for any indication of when lower rates might be implemented. Powell is expected to address and alleviate concerns regarding inflation.
The February jobs report, which is set to be released on Friday, is expected to show a decrease in payroll gains, with the U.S. economy adding 200,000 jobs in February compared to 353,000 in the prior month.
In Canada,the BoC is widely expected to maintain the overnight rate steady again at its meeting on Wednesday.
Over past meetings, the BoC has been gradually and cautiously moving towards a more dovish stance. Language around the need to hike rates further was already dropped in January and is unlikely to reappear in the statement this week.
The Bank likely wants to see some additional slack in the labour market, which we expect to see in Friday's LFS jobs data, hoping that will lead to cooling in wage gains ahead.
With job listings remaining well below prior peaks and the employee survey of jobs showing a much weaker trend recently, CIBC expects the labour force survey of employment to show a weaker gain in February. The 20K increase they forecast would be well below the average pace of population growth recently, and unless participation declines further that would see the unemployment rate tick back up to 5.8%.
Source: CIBC, Trading Economics, RBC, CanadianInsider
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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