21 – 25 June | Which 3 companies should you watch this week?

News

This week will be dominated by fresh quarterly results from Nike, Prosus and Blackberry. Will the figures meet expectations? How will the stock prices react? We break it all down in today’s issue.

Strong growth for Prosus?

The Dutch company Prosus, which is one of the biggest tech investors in the world, will report its profits on Monday, June 21st. And the outlook is promising! Indeed, the company said its full-year earnings-per-share are expected to double.

Prosus recently sold 2% of its stake in Chinese tech giant Tencent. It remains Tencent’s largest shareholder, with a 28% position in the company, but this sale will have generated particularly high profits! However, Prosus isn’t just reliant on Tencent’s performance. It also has activities and investments in e-commerce, meal delivery services, online payments and educational software.

Nike picks up the pace

On June 24th, we’ll get a closer look at Nike’s profits for its fourth quarter. With a market capitalisation of more than $200 billion, Nike is still the leading company in the sportswear arena. Its digital sales have recently increased by 60%, however, the ongoing store closures continue to push the stock down. Nike shares have lost around 3% since the start of the year.

Nike was also on the wrong side of a customer boycott in China in March, after the company made a statement about the exploitation of Uyghur workers in the Xinjiang region. This boycott, which also hit Adidas, could impact sales growth in China for the fourth quarter, but analysts think this is only a short-term problem. All of this may actually be offset by a sales boost in the US and Europe, which welcomed the stance on human rights.

Overall, Nike stock remains strong, and the long-term outlook is positive. Earnings-per-share are expected to hover at $0.51 with sales of $11.24 billion.
If you’re interested in this event, you can even follow the conference live with this link.

The big BlackBerry comeback?

It’s everyone’s favourite new ‘meme’ stock! BlackBerry has become a popular stock on Reddit’s ‘WallStreetBets’ forum, which first disrupted the financial world with the Gamestop saga. According to some users, BlackBerry stock could double in price due to the company’s new focus on cyber-security and potential involvement in electric cars.

BlackBerry will publish its first-quarter earnings on Thursday, June 24th. But, let’s not get carried away with the hype. The company’s earnings are expected to come in below original estimates. On top of that, BlackBerry has seen its revenue fall by 24% over the full year period.

Sustainable investing

We wanted to talk to you again about our theme for the month of June: sustainable investing. This week, find out why investing in companies with a high ESG (environmental, social, governance) score could generate better returns for your portfolio. 

Economic and earnings calendar

Monday – Netherlands consumer confidence index. Quarterly figures from Prosus.

Tuesday – Consumer confidence index in the eurozone and in China.

Wednesday – Manufacturing and services PMI (flash) index for the month of June in France, Germany, Great Britain and the United States. Final GDP growth in the Netherlands for the first quarter.

Thursday – Final GDP growth in Germany and the United States for the first quarter. Meeting of the General Council of the ECB in Frankfurt. Unemployment rate in the United States. Quarterly figures from Nike, FedEx and BlackBerry.

Wednesday – Manufacturing and services PMI (flash) index for the month of June in France, Germany, Great Britain and the United States. Final GDP growth in the Netherlands for the first quarter.

We’ll be back again next week for another edition of the BUX Breakdown. In the meantime, have a great week on the markets!

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This BUX Breakdown was written by Clémentine Pougnet.

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All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.