Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy
prior to making financial decisions.
With the extended weekend behind us, courtesy of Labor Day, this week brings us many interesting company reports. From penny stocks to watch such as FCEL to established stocks such as ORCL and LULU. All three pose an enticing investing prospect.
3 Stocks to Watch
FuelCell Energy Inc. (NASDAQ:FCEL)
On the back of countless governmental, corporate, and banking initiatives, FuelCell holds an inherent advantage. Delivering and maintaining energy with a low carbon footprint, by using hydrogen as the main energy carrier, it offers a far more dependable power source than fickle solar and wind. We have already addressed the great potential of hydrogen fuel cells, as the technology replacing carbon footprint-intensive lithium cells for EVs.
Over the last 3 months, FCEL has been fluctuating between $2 and $3. This makes it a leading penny stock to watch right now.
As a result of the government’s response to COVID-19, the energy sector has suffered much greater volatility than usual. However, since the middle of March FCEL stock rallied by 150%. Most of the company’s income comes from the United States and South Korea, countries at the cutting edge of renewable energy sources.
The company’s last quarter earnings were in line with Wall Street’s projection. Moreover, FuelCell increased its contract backlog to the worth of $1.32 billion at the end of April.
On September 10, the company will issue its full report for Q3 2020, so keep a close track of it. If you’re interested in penny stock trading, be sure to leverage one of the leading penny stock brokers as they feature a number of unique benefits.
Just like FuelCell Energy, Oracle is set to issue its report on September 10, but for Q1 2021. Ever since the TikTok saga came to light, Oracle has renewed investor interest, as a bidding competitor to Microsoft. Oracle’s CEO Larry Ellison is still in negotiations to buy TikTok’s operations from ByteDance, in New Zealand, Canada, Australia, and the US.
Oracle, as a legacy software company providing databases and enterprise-grade cloud solutions, is close to the Trump administration. As a part of the US-China ongoing trade war, President Trump initiated TikTok’s banning/takeover and has already given approval for Oracle’s bid. On top of that, Oracle represents a great fit for TikTok due to its formidable cloud infrastructure.
As for Oracle’s finances, its cash flow holds at an impressive $35.7 billion. Oracle stocks even withstood last week’s mini-crash among tech stocks, rallying instead to a one-year high of $59.40. Likewise, Credit Suisse equity analysts rated Oracle stock to “outperform”, with a price target of $62 from the previous $58.
However, notwithstanding the potential TikTok acquisition, Oracle’s earnings are projected to remain largely flat in the next fiscal year. This is due to IT budgets tending to be invested more into cloud app software than into on-premise cloud infrastructure, which is Oracle’s specialization.
One of a kind, Lululemon made its mark in the apparel market by combining leisure with athletic clothing – athleisure. Its earnings for the previous two fiscal years rose by 21% and 24% respectively.
The company’s comp sales (comparable same-store) have also enjoyed a steady growth of 17%. For the last fiscal year. Overall, Lululemon’s gross profit rose by 22% to $2.2 billion, accounting for a gross margin of 56%.
In Q1 2020, Lululemon significantly increased its direct-to-consumer revenue by 54% (compared to last year’s 27%), signifying a successful transition to online sales amid the coronavirus pandemic. Yesterday, LULU released its earnings, which topped expectations. According to RBC Capital analyst Kate Fitzsimons, LULU’s stocks are rated as a buy, with a price target within $348 – $435.
📈 Ready to trade stocks? See our report on the leading apps for stock trading to get started.