Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 Reasons Not to Worry This Week

It's not a perfect world out there for investors, but things may be starting to get better.

The Dow and S&P 500 both hit new highs last week as investors shrugged off uninspiring global economic news to push the leading market gauges higher.

I recently went over some of the companies that are expected to post lower quarterly profits when they report this week. Thankfully, they're the exceptions and not the rule.

Let's go over some publicly traded companies that are expected to stand tall this week by posting year-over-year improvement on the bottom line.


Latest Quarter EPS (estimated)

Year-Ago Quarter EPS

Consumer Portfolio Services (NASDAQ: CPSS  )



Joe's Jeans (NASDAQ: DFBG  )



SanDisk (NASDAQ: SNDK  )



Intuitive Surgical (NASDAQ: ISRG  )



Chipotle Mexican Grill (NYSE: CMG  )



Source: Thomson Reuters.

Clearing the table
Let's start at the top with Consumer Portfolio Services. Shares of the auto loan financier took a hit two weeks ago after a Reuters article cast the subprime auto loan industry in an unflattering light. Consumer Portfolio Services takes on a lot of risky loans from car buyers that would get turned down from traditional financing providers.

The good news for investors is that the risks are apparently paying off these days. Wall Street sees a dramatic spike in profitability.

Joe's Jeans puts out premium denim. Who has the money to buy a $575 denim jacket or a $210 pair of pre-shredded vintage jeans? Well, a lot of people are apparently having no problem with Joe's high prices.

Net sales soared 33% during the company's holiday quarter, fueled by a 6% increase in same-store sales, retail expansion, and a robust 37% spike in wholesale net sales. There's little to reason to expect the trend to reverse. Despite its tiny share price, Joe's Jeans has been consistently profitable since late 2006.

SanDisk is the global leader in flash memory. The popularity of flash storage is undeniable. The trend toward flash that gained momentum with digital cameras and netbooks a few years ago has exploded in this age of tablets and smartphones. Things haven't always been easy for SanDisk, especially at times when competitors break into cutthroat pricing battles. The climate is kinder these days. Wall Street sees a 22% pop in net income this quarter.

Intuitive Surgical is the company behind the da Vinci surgical system that's been a popular addition at state-of-the-art hospitals. The robotic surgical arm is approved for a growing number of procedures. The shares took a hit earlier this year on reports that the FDA was probing instances at key hospitals where adverse incident reports were high for procedures involving Intuitive Surgical's platform. A strong report would silence the skeptics.

Finally, we have Chipotle. The burrito roller still doesn't have a problem attracting long lines to its growing chain of fast-casual restaurants, but the "food with integrity" company has been coming up short on the bottom line lately. After consistent market-thumping results after being spun off by Mickey D's, Chipotle has posted lower-than-expected earnings in back-to-back quarters.

The stock has fallen over the past year. Chipotle's trading 23% lower than it was when it peaked last April. It will be a defining moment when Chipotle reports on Thursday. If it wants to bring back growth investors and justify its still-lofty market premium, it's going to have to make sure that it gets back to besting the pros.

Cross those fingers, but know the fundamentals
Investors in these five stocks have a right to be excited. They are all improving their financial situations. They are worthy of the gains that the market rally has bestowed upon them over the past year.

I wouldn't be uncomfortable owning any of these companies. They're doing the right thing, regardless of Mr. Market's mood swings.

The expectations may be high, but these five stocks wouldn't have it any other way.

Chipotle's stock has been on an absolute tear since the company went public in 2006. Unfortunately, 2012 hasn't been kind to Chipotle's stock, and investors question whether its growth has come to an end. Fool analyst Jason Moser's premium research report analyzes the burrito maker's situation and answers the question investors are asking: Can Chipotle still grow? If you own or are considering owning shares in Chipotle, you'll want to click here now and get started! 

Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2362544, ~/Articles/ArticleHandler.aspx, 5/25/2016 7:32:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 10 hours ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:00 PM
CMG $457.33 Up +0.89 +0.19%
Chipotle Mexican G… CAPS Rating: ****
CPSS $3.95 Up +0.12 +3.13%
DFBG $3.91 Up +0.11 +2.89%
Joe's Jeans, Inc. CAPS Rating: ***
ISRG $638.67 Up +10.02 +1.59%
Intuitive Surgical CAPS Rating: ****
SNDK $0.00 Down +0.00 +0.00%
SanDisk Corp CAPS Rating: ***