3 Predictions for the New Week

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

May 4, 2014 at 3:00PM

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

  • I predicted that 3D Systems (NYSE:DDD) would move higher on the week. The maker of 3-D printers had shed nearly half of its value in 2014 after a huge rally a year earlier. 3D Systems was reporting earnings on Tuesday, and that seemed like a great time to get its story out. It didn't pan out that way. 3D Systems took a hit on Tuesday. The shares started to bounce back after that, but it wasn't enough. The stock slipped 2% on the week. I was wrong.
  • The Dow Jones Industrial Average (DJINDICES:^DJI) has been clobbering the Nasdaq Composite lately, but I still think the tech-centric Nasdaq is the place to be. My second prediction was for the Nasdaq to beat the Dow on the week. It had been a bad bet in recent weeks, but it panned out this time. The Nasdaq Composite increased 1.2% on the week. The Dow moved 0.9% higher. I was right.
  • My final call was for LifeLock (NYSE:LOCK) to beat Wall Street's income estimates in its latest quarter. The leading provider of ID theft monitoring services had beaten analyst targets consistently over the past four quarters, and I was banking on a repeat performance. We saw it close out the quarter with a deficit of $0.01 a share. Analysts had been projecting a loss of $0.02 a share. The stock took a hit on unflattering guidance, but it was a beat on the bottom line. I was right.

Two out of three? I can do better than that!

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. Monster Beverag will miss Wall Street's profit estimate
Monster Beverage (NASDAQ:MNST) has proven that you can beat the cola giants in the beverage market. Monster and rival Red Bull dominate the energy drink category, much to the lament of the soda giants that have tried to gain a foothold in the market.

Things haven't been exactly smooth for Monster, especially when it comes to the battle on how its products should be labeled. There's also the growing fear of the health ramifications of consuming too many energy drinks, particularly by younger Monster fans. There's also Monster's fight against analysts. Monster has come up short against Wall Street expectations in each of its past four quarters. The pros are projecting a profit of $0.49 a share, but the trend suggests it won't make the cut.

My first call is for Monster Beverage to clock in below Wall Street's net income expectations. 

2. Nasdaq will beat the Dow this week
I've routinely picked the tech-heavy Nasdaq Composite to beat the Dow Jones Industrial Average, and it's been a bad bet in recent weeks. It finally paid off last week, and I'm going to stick with it again for a repeat performance. My second call is for the Nasdaq Composite to beat the Dow Jones Industrial Average for the week.

3. Tesla Motors will beat Wall Street's earnings estimates
Some stocks are just flat out better than others.

Tesla Motors (NASDAQ:TSLA) is undeniably the coolest maker of electric cars. Its Model S sedan continues to gain momentum with every passing quarter, and the push overseas is generating global demand for Tesla's costly yet desirable vehicles.

Another thing it does is make analysts look like perpetual underachievers. If analysts say that the company rang up a profit of $0.10 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. Subsidies for electric vehicle ownership could dry up. The Model X crossover vehicle could get delayed. Cheaper plug-in cars could grow more appealing as value propositions. That's all stuff to keep in mind down the road, but not now. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Warren Buffett has another prediction for you
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Rick Munarriz owns shares of LifeLock. The Motley Fool recommends 3D Systems, LifeLock, Monster Beverage, and Tesla Motors and owns shares of 3D Systems, Monster Beverage, and Tesla Motors. 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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