Please ensure Javascript is enabled for purposes of website accessibility

Here Are the 2 Nasdaq Stocks You Should Watch Next Week

By Dan Caplinger - Updated Jun 4, 2021 at 12:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two stocks from very different industries will provide valuable insight into the current state of the economy.

When many investors think of growth stocks, they think of Nasdaq stocks. Growth investors helped send the Nasdaq Composite (^IXIC 2.09%) to monumental gains in 2020, and despite seeing pressure during much of 2021, the benchmark is still up for the year and within striking distance of all-time highs. On Friday morning as of 11:45 a.m. EDT, the Nasdaq was higher by almost 1.5%.

We're largely in the lull between earnings seasons, and many closely followed companies listed on the Nasdaq have already released their latest financial results. However, there are a couple of stocks that a lot of investors will be watching closely next week when they issue their earnings. FuelCell Energy (FCEL 6.90%) and Stitch Fix (SFIX 2.22%) will provide two very different perspectives on how the overall economy is faring and what lies ahead as market participants look forward to a recovery for the rest of 2021 and beyond.

Car trunk reading Hydrogen Fuel Cell.

Image source: Getty Images.

Looking for a boost

FuelCell Energy is set to report its fiscal second-quarter financial results on Thursday morning, June 10. Despite the enthusiasm that many investors have about the prospects for the hydrogen economy in light of advances in electric vehicles, FuelCell has seen its stock struggle.

There's no question that the fuel-cell industry has a lot of promise. With European nations seeking to embrace clean energy, FuelCell has had a potentially large addressable market for years. Excitement about the prospects for building up that market helped FuelCell's stock soar from $2 per share in late October 2020 to nearly $30 per share in February 2021.

However, FuelCell hasn't done much to execute on its opportunity. Sales in FuelCell's fiscal first quarter fell short of investor expectations by nearly a third, with a much steeper loss than expected. Moreover, FuelCell's backlog remained stubbornly flat as the company seemed to fail to capture much in the way of new business.

As a consequence, FuelCell shares remain more than 60% below their best levels. Long-time investors have seen this story before from FuelCell, and the company desperately needs to build credibility with fundamental success in order to change a narrative that's been quite disappointing for shareholders.

A fix for Stitch Fix?

Investors won't have to wait quite as long to find out the latest from Stitch Fix. The subscription-based persona-style specialist and apparel-delivery company is set to report its fiscal third-quarter results on Monday, June 7 after the end of the regular trading session for the stock market.

Stitch Fix's recent earnings releases have been a study in contrast. Fiscal first-quarter results in December showed double-digit percentage growth in sales and customer counts, and the company set encouraging guidance for sales growth of 20% to 25% for the remainder of the fiscal year. Yet three months later, Stitch Fix had to rein in those lofty expectations, and net losses remained stubbornly large and worse than most had expected to see.

Adding to the uncertainty is the surprise decision from CEO Katrina Lake to step down, effective as of the beginning of August. The founder will remain involved as executive chair of the board of directors, and many have plenty of confidence in heir-apparent Elizabeth Spaulding. Even so, it'll be interesting to see who handles the conference call and addresses questions on future strategic direction.

Stitch Fix shares have more than doubled over the past 12 months, but they're also down by roughly 50% from their highs early this year. What the fashion-curation specialist says about its latest results could play a key role in the long-term trajectory of Stitch Fix's stock.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Stitch Fix. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

FuelCell Energy, Inc. Stock Quote
FuelCell Energy, Inc.
FCEL
$5.11 (6.90%) $0.33
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$13,047.19 (2.09%) $267.27
StitchFix Stock Quote
StitchFix
SFIX
$7.36 (2.22%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.