Players will have a few good reasons to tune in to the week of news that is waiting to happen.
Monday
The games start early as Hasbro (NYSE:HAS) and Mattel (NYSE:MAT) kick off the new trading week with their quarterly reports. Yes, it's not every day that you get an industry's two undisputed leaders talking about their numbers side by side. Sure, it's still July out there, and toy makers earn a pittance this time of year. It isn't until the final two quarters of the year that retailers stock up on the hot toys to make sure that they are sitting pretty over the holidays.
Mattel was one of Philip Durell's first recommendations for his Inside Value newsletter. The stock has risen by 12% since it was singled out back in September. Both companies have had their share of ups and downs over the years. You can't always have the hot toy. The popularity of video games has sometimes left the companies alone with their playthings.
These aren't necessarily catastrophic events, especially if you are a contrarian investor. That's because there is always an opportunity as Hasbro and Mattel fall in and out of favor. The companies can be exciting. Hasbro even launched a site to sell directly to the consumer earlier this year. Yes, Hasbro and Mattel love to play. They play to win, too, because they can really be sore losers.
Tuesday
If having Hasbro and Mattel report on the same day spoils you, how about Intel (NASDAQ:INTC) and Advanced Micro Devices (NYSE:AMD) coming to bat at the same time? No, that's not going to happen. It will just be Intel on Tuesday. However, its only significant rival in computer chips just posted its numbers, and AMD surprised the market with a profit.
Does AMD's strong showing bode well for the sector, or was it the result of nibbling away at Intel's market share? That's the question that Tuesday will answer. Intel is coming off a solid March quarter, so momentum may indicate that all of the chip ships are starting to rise with the favorable wave.
Wednesday
Just because eBay (NASDAQ:EBAY) is working through a cycle of slowing growth, that doesn't mean the leading auctioneer is no longer a growth stock. Sure, its domestic auction business slowed to sport just 20% in revenue growth back in March. It's growing a lot faster than that overseas. It also has its PayPal payment services canvassing the globe. And, hey, 20% is still a pretty respectable growth clip. That's why all eyes will be dropping a few paragraphs down in eBay's June quarter report on Wednesday to see if it can hold the line at the 20% mark domestically. If it does, "Buy It Now" may be a button appearing on more than a few online brokerage screens later in the week.
Thursday
If cash is king, Microsoft (NASDAQ:MSFT) is donning a thick green crown. But money can't buy you happiness. It certainly can't buy you capital appreciation. Microsoft's shares are trading just where they were three years ago. The stock is actually quite a bit lower than it was five years ago.
Mr. Softy is still that dominant software company that you have grown to love -- or loathe. It's got a pretty nifty video game console business going these days, too. However, that stagnant share price has many speculating about when the company will put its cash balance to good use by making a major acquisition. Thursday is unlikely to produce any clues on that front. A three-month snapshot will have to suffice. Then again, you never know. It doesn't hurt to listen. That crown must be awfully heavy.
Friday
Soaring prices at the pump got you down? That won't take away Schlumberger's (NYSE:SLB) smile. The second-largest oil-field services specialist has seen its stock nearly double over the past three years, thanks to the buoyant energy market. Is the company running out of gas? We'll know a little more when the company wraps up the week with its second-quarter report.
Want to learn more about the companies waiting to report earnings this week? Check out:
- Hasbro's Dot-Com Death Star
- Is There Value Inside Intel?
- Forecast for eBay: Slower Growth
- Microsoft's Next Target
- Schlumberger: Top Pick?
Until next week, I remain,
Longtime Fool contributor Rick Munarriz still smiles at the toy store. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
