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3 Stocks to Watch Next Week: Cisco, Salesforce, and Wal-Mart

By Timothy Green - May 15, 2016 at 2:41PM

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All three companies are reporting results next week as earnings season continues.

Despite macroeconomic uncertainty, networking giant Cisco Systems (CSCO -0.09%) expects to grow revenue during its fiscal third quarter, results for which will be announced on Wednesday. Weakness in Cisco's fast-growing data center segment during the second quarter was concerning, but the company expects this to be a temporary issue. The security business is still growing fast, with Cisco aiming to become a diversified provider of security solutions.

Customer relationship management (CRM) software provider Salesforce.com (CRM 1.92%) will also report results on Wednesday. The company continues to grow rapidly and produce plenty of free cash flow, but Salesforce's GAAP earnings remain essentially non-existent. Free cash flow is far from perfect, and Salesforce will eventually need to prove to investors that it can produce consistent profits.

Following some terrible results from fellow retailers, Wal-Mart Stores (WMT 0.86%) will report its first-quarter numbers on Thursday. Earnings will take a hit due to higher wages and investments in training and e-commerce, but Wal-Mart does expect to grow comparable sales in the United States. One of Wal-Mart's e-commerce initiatives, online grocery ordering and pickup, looks particularly promising.

Click through the following slideshow for more details on these three stocks to watch.

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Stocks Mentioned

Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$122.63 (0.86%) $1.05
Cisco Systems, Inc. Stock Quote
Cisco Systems, Inc.
CSCO
$42.60 (-0.09%) $0.04
Salesforce, Inc. Stock Quote
Salesforce, Inc.
CRM
$168.20 (1.92%) $3.16

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

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