Please ensure Javascript is enabled for purposes of website accessibility

7 Reasons Not to Worry This Week

By Rick Munarriz - Updated Apr 6, 2017 at 5:35PM

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

Not every company will be posting lower earnings this week.

Things aren't always pretty out there.

Between new obstacles in Greece and familiar problems everywhere else, the global economy isn't getting any better these days. There have also been plenty of implosions this earnings season, and we're probably not done yet.

I recently went over some of the companies posting lower quarterly profits and hosing down their near-term outlooks.

Thankfully, they're the exceptions and not the rule. Let's go over some publicly traded companies that are expected to stand tall this week by posting year-over-year improvement on the bottom line.


Latest Quarter EPS (estimated)

Year-Ago Quarter EPS



Perfect World (Nasdaq: PWRD) $0.67 $0.60 Add
Zale (NYSE: ZLC) ($1.42) ($1.60) Add
Chico's FAS (NYSE: CHS) $0.20 $0.16 Add
China Real Estate Info (Nasdaq: CRIC) $0.13 $0.10 Add
Patterson (Nasdaq: PDCO) $0.46 $0.45 Add
Deere (NYSE: DE) $1.43 $1.07 Add
China Digital TV (NYSE: STV) $0.18 $0.17 Add

Source: Thomson Reuters.

Clearing the table
Let's start at the top with Perfect World.

The online gaming company in China reports tonight (or tomorrow morning, for those playing in Beijing). The company has had a rough year, making the former Rule Breakers stock pick a timely sell recommendation at $29.43 last year. After four consecutive quarters of posting year-over-year declines in profitability, Perfect World turned things around three months ago. The pros see an encore performance now.

High-end jewelers got off to a bad start this month, and Zale is the first of three major publicly traded jewelry retailers that will report quarterly results before the end of the month. The bad news is that Zale is still losing money. The good news is that Wall Street is banking on a slightly narrower deficit as we head to the telltale holiday shopping season.

Chico's FAS is the retailer behind Chico's, White House | Black Market, and Soma Intimates concepts. It closed on its acquisition of direct marketer Boston Proper in September. Many apparel retailers have felt the pinch of consumers holding their disposable income tighter, but at least Chico's is moving its bottom line in the right direction.

China Real Estate Information is the combination of the online real estate properties of one of the country's leading agencies and a dot-com giant. There has been some serious air squeezed out of the world's most populous nation's property value bubble, but China Real Estate Information is pegged to post a 30% improvement in net income.

Patterson is a leading provider of consumable products used in the dental industry, though it also serves the veterinarian and rehabilitation industries. This would seem like an all-weather specialty -- a toothache is a toothache -- but surely there must be people out there holding back on routine cleanings because they are either out of work or not finding dental coverage as companies scale back their medical plans.

John Deere's agricultural gear seems like a clearer all-weather niche. Folks have to eat, and farms need to be tended to in order to make that happen. As emerging markets continue to develop -- even with the global economic malaise -- Deere should fare well.

Finally, we have China Digital TV. As the leading provider of "smart cards" that connect set-top boxes and televisions to digital cable services in China, this has always seemed like a thinking investor's play on China's growing middle class.

Cross those fingers, but know the fundamentals
Investors in these seven stocks have a right to be excited. They are all improving their financial situations. They are worthy of the gains that the market rally has bestowed upon them over the past year.

I wouldn't be uncomfortable owning any of these companies. They're doing the right thing, regardless of Mr. Market's mood swings.

The expectations may be high, but these seven stocks wouldn't have it any other way.

Are you a buyer or a seller of stocks these days? Share your strategy in the comment box below.

Motley Fool newsletter services have recommended buying shares of China Digital TV Holding. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

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

Deere & Company Stock Quote
Deere & Company
$368.16 (1.72%) $6.24
China Digital TV Holding Co., Ltd. Stock Quote
China Digital TV Holding Co., Ltd.
Patterson Companies, Inc. Stock Quote
Patterson Companies, Inc.
$31.37 (1.39%) $0.43
Chico's FAS, Inc. Stock Quote
Chico's FAS, Inc.
$6.57 (2.18%) $0.14

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

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.