Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Stocks to Watch Before Thanksgiving

By Alex Dumortier, CFA - Nov 19, 2012 at 9:18AM

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

Results that matter for the market

This week is an abbreviated week due to the Thanksgiving holiday. Equity markets will be closed on Thursday and will close at 1 p.m. EST on Friday. As such, I wouldn't expect much volatility in the three full sessions this week. (With that said, this is anything but an ordinary environment, so anything is possible.) The Dow Jones Industrial Average ( ^DJI -0.17% ) will be looking to snap a streak of four consecutive losses, and one closely watched Dow component, Hewlett-Packard ( HPQ -0.24% ), reporting its results on Tuesday.

This morning, home improvement retailer Lowe's ( LOW -0.68% ) reported expectation-beating third-quarter results. The company said sales had risen 1.9% to $12.1 billion in the quarter ended Nov. 2. The increased revenue, owing partly to Sandy-related sales of storm-preparedness goods and rebuilding supplies, helped net income rise to $396 million, or $0.35 per share. The company's results have some macroeconomic significance, inasmuch as they may corroborate the "green shoots" that appear to be indicating the beginning of a recovery in the housing market. Lowe's is up 5.6% in premarket trading.

Recall that last Wednesday, Lowe's primary competitor, Home Depot ( HD 0.01% ) beat expectations on the top and the bottom line. In response, the market rewarded the shares with their highest closing value in 12 years!

Strictly speaking, Hewlett-Packard has beaten expectations at least four times consecutively prior to Tuesday's earnings report. However, the company has otherwise systematically crushed investors' hopes and dreams for some time now: The stock chart below tells a depressing tale. The market is looking for EPS of $1.14, a 2.5% decline with respect to the year-ago period, and achieving that would actually represent outperformance with respect to the S&P 500, which registered a 3.7% year-on-year decline in earnings in the third quarter.

HPQ Chart

HPQ data by YCharts.

The post-election stock market slump means it's not too late to get in on the stocks identified in our free report: "These Stocks Could Skyrocket After the 2012 Presidential Election." Click here to receive the report now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$34,580.08 (-0.17%) $-59.71
The Home Depot, Inc. Stock Quote
The Home Depot, Inc.
$407.81 (0.01%) $0.04
HP Inc. Stock Quote
HP Inc.
$37.55 (-0.24%) $0.09
Lowe's Companies, Inc. Stock Quote
Lowe's Companies, Inc.
$248.69 (-0.68%) $-1.70

*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 service.

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 12/06/2021.

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

Our Most Popular Articles

Premium Investing Services

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