7 Reasons to Worry About Next Week

November is coming to an end, but the rally that started in March is still kicking. Isn't that troublesome?

There are certainly plenty of stocks that have earned the hearty gains over the past few months, but there are still way too many companies headed the wrong way, fundamentally. In short, many of the widely followed stocks reporting quarterly results next week are projected to announce lower net income than they rang up a year ago.

Let's go over a few of the companies whose quarterly date with Mr. Market could leave investors cringing:

Source: Yahoo! Finance.

Clearing the table
There will likely be many more companies posting lower earnings next week, but these are just a few of the names that really jump out at me.

Let's start with Guess?, where it's easy to expect lower earnings. Who's buying trendy apparel during a recession? That said, three months ago, Guess? stunned the market with a 14% pop in profitability, as revenue climbed 9% in constant dollars. The company found a way to grow then, even when the economy was at its worst.

OmniVision is a camera chip designer. If this seems like a spotty business, keep in mind that OmniVision's wares end up in booming growth gadgets, including snapshot-ready mobile phones and webcam-equipped netbooks.

Beacon isn't expected to raise the roof next week. The distributor of roofing materials and complementary building products through its network of 172 branches is mired in a lousy industry. Even with recent signs of life in the housing space, demand for new construction remains weak. The merciful hurricane season was also kind enough to keep most existing roofs intact.

Staples is the undisputed champ in retail office supplies. Naturally, its superstores are at the mercy of the corporate economy. If companies are laying off employees, the newly pink-slipped legions certainly won't need new work chairs or desks. The office printer doesn't need refills as often when there are fewer invoices and paychecks going out. However, it's important to point out that analysts do see earnings improving at Staples during the current quarter. If an office supply superstore bottoms out in suburbia, does it make a sound?

The Pantry is a convenience store operator. If you figured that gasoline and beef jerky were all-weather purchases, tell that to The Pantry's shareholders. Analysts see a 28% top-line slide, and even greater deterioration on the way to the bottom line.

Canadian Imperial Bank of Commerce is another notable sinker. Another Canadian banking heavy reporting next week -- Royal Bank of Canada -- is projected to post a meager improvement during the same quarter.

Finally we have Quanex. Some of the best Motley Fool CAPS players have been turning on the building products manufacturer, possibly ahead of Thursday's quarterly report.     

Why the long face, short seller?
Disappointed? It's easy to see why. The market has rewarded many of these stocks with healthy gains over the past few months, but they still haven't turned the corner.

The good news here is that Wall Street already expects these companies to deliver shrinking bottom lines. In other words, the bad news is already baked into the shares.

The more I think about it, the less worried I become.