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7 Reasons Not to Worry This Week

Rick Aristotle Munarriz
July 26, 2010

Will it be Christmas during the last week in July?

This has generally been a good month for equities, but it's not perfect. I singled out seven stocks over the weekend that are projected to post lower earnings this week than they did a year earlier. Thankfully, that's just one side of the story.

There's more good news than bad news on the earnings front. Between recessionary cost-cutting and general improvement from last year's depressed levels, several companies are in better shape now than they were a year ago.

Let's go over seven companies that analysts see posting healthier bottom lines this week.


Latest Quarter EPS (Estimated)

Year-Ago Quarter EPS

Eastman Kodak (NYSE: EK  )



Green Mountain Coffee (Nasdaq: GMCR  )



Visa (NYSE: V  )



China Security (NYSE: CSR  )



CMEGroup (NYSE: CME  )



IMAX (Nasdaq: IMAX  )



Chevron (NYSE: CVX  )



Source: Yahoo! Finance.

Clearing the table
Let's start at the top. Kodak is a company that could have easily buckled under as consumer trends worked against its flagship business. Digital cameras with flash-based memory cards have obliterated the market for Kodak's film products. Social networking, smaller photo-sharing sites, and even digital picture frames have no doubt left a dent in Kodak's photofinishing business. Moving into hardware and health care imaging is helping, but Kodak is still not entirely out of the picturesque woods. It has posted a loss in six of the past nine quarters. Wednesday's report should be more of the same, though the reason that Kodak is worthy of including in this week's column is that the deficit will narrow.

Green Mountain has revolutionized the coffee industry with its Keurig single-cup coffee brewing system and the K-Cups that fuel the caffeinated kicks. The stock's premium valuation has attracted critics, but the company's growth has been blazing. Green Mountain smoked through the recession, as the convenience and value of home-based java at a fraction of the cost of its coffeehouse counterpart have won out.

Visa is the ubiquitous credit card giant. Swiping plastic isn't going away, and as a marketer Visa gets to enjoy the transactional fruits while the issuing