3 Predictions for the New Week

This Fool sees a limb to go out on. And another. And another.

Apr 13, 2014 at 3:00PM

I went out on a limb last week, and now it's time to see how that decision played out.

  • I predicted that Sirius XM Radio (NASDAQ:SIRI) would move higher on the week. The satellite radio provider had slipped in recent weeks, and I figured it was due for a bounce. The market deluge clearly didn't help, but Sirius XM was actually holding on to a weekly gain with hours left in the week. It didn't stick. Sirius XM closed 1.3% lower. I was wrong.
  • The Dow Jones Industrial Average (DJINDICES:^DJI) has been beating the Nasdaq Composite in recent weeks, but I was expecting the trend to reverse itself. It was a brutal week. The Nasdaq plunged 3.1%, worse than the Dow's 2.3% slide. I was wrong.
  • My final call was for WD-40 (NASDAQ:WDFC) to beat Wall Street's income estimates in its latest quarter. The company behind industrial cleaners, automatic toilet bowl cleaners, and its namesake lubricant has beaten analyst targets consistently over the past four quarters. I was banking on a repeat performance. We saw WD-40 close out the quarter with a profit of $0.67. Analysts had been projecting net income of $0.68. I was wrong.

I whiffed on all three? I can do better than that. I can't do worse.

Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

1. AMD will do more than break even
Advanced Micro Devices (NASDAQ:AMD) has done a lot of growing since its days as a pesky No. 2 in the PC market for microprocessors. It has evolved, and now happens to be the company that powers all three of the next-gen video game consoles.

AMD reports quarterly results on Thursday, and analysts see it breaking even. That would be an improvement over the small loss it posted a year earlier, and be the chip provider's third consecutive profitable quarter. Let's aim higher. AMD posted a better profit than analysts were forecasting in the two previous quarters, so why settle for breaking even this time around?

My first call is for AMD to earn more than $0.00 a share in Thursday's quarterly report.

2. Nasdaq will bounce back 
I routinely picked the tech-heavy Nasdaq Composite to beat the Dow Jones Industrial Average, and it's usually been a smart wager.

That hasn't been the case lately, but the bigger story here is how the Nasdaq has gotten rocked in recent weeks, with many of last year's market leaders falling sharply since peaking last month. My second call is for the Nasdaq Composite to close out the short trading wek beat the Dow Jones Industrial Average for the week.

3. Johnson & Johnson will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others.

Johnson & Johnson (NYSE:JNJ) is the pharmaceuticals giant with a strong hand in consumer products. Doctors and surgeons know its medical products, but most folks know its baby shampoo, Band-Aid bandages, and other products. Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $1.48 a share in its latest quarter, I'll argue that it held up better than that. History's on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let's go over the past year of earnings reports.


EPS Estimate



Q1 2013




Q2 2013




Q3 2013




Q4 2013




Source: Thomson Reuters.

Things can change, of course. The beats have been consistent but also fairly narrow. It's landed ahead of the prognosticators by a mere 3% margin in three of the past four quarters. That's not a lot of wiggle room.

It's still hard to argue against the trend. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let's see how I fare this week, as you check out three more investing ideas. As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Rick Munarriz has no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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