3 Predictions for the New Weekhttp://www.fool.com/investing/general/2013/09/01/3-predictions-for-the-new-week.aspx Rick Munarriz
September 1, 2013
I went out on a limb last week, and now it's time to see how that decision played out.
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. Tesla Motors will close lower on the week
The future's bright for Tesla, but its $20.5 billion market cap seems a bit extreme for where it is in its life cycle. Against this backdrop, the market's showing plenty of volatility, making high-beta stocks vulnerable. Tesla has bucked the malaise so far. August was the market's worst month in more than a year, but Tesla had no problem moving higher. It hit a new high earlier this past week.
For a week, at least, Tesla's likely to be due for a breather. My first call is for this Wall Street darling to close lower on the week.
2.The Nasdaq Composite will beat the Dow this week
I'm going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery. Earnings reports were rough in some places this past season, but the long-term outlook is still quite favorable. The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.
3. Bazaarvoice will beat Wall Street's earnings estimates
Bazaarvoice (NASDAQ: BV) is a leading provider of social commerce solutions. More than 1,000 retailers lean on Bazaarvoice's data -- covering more than 400 million questions and experiences on roughly 20 million different products -- to drive sales, awareness, and customer loyalty.
Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a loss of $0.08 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