1 Stock To Buy, 1 To Dump When Markets Open: General Motors, Conagra Brands | Investing.com


Stocks on Wall Street closed greater on Friday, coming into the ultimate quarter of 2021 in a buoyant temper. However, the benchmark nonetheless suffered its worst weekly decline since February, falling 2.3%, as worries over the Federal Reserve’s tapering plans sapped investor threat urge for food.

Between one other batch of necessary financial information—together with the most recent U.S. report—in addition to notable earnings from corporations like PepsiCo (NASDAQ:), Constellation Brands (NYSE:), and Levi Strauss (NYSE:), the week forward is predicted to be an eventful one.

Regardless of which route the market goes, under we spotlight one inventory more likely to be in demand within the coming days and one other which may see contemporary losses. 

Remember although, our timeframe is simply for the week forward.

Stock To Buy: General Motors

General Motors (NYSE:) will likely be in focus  because the world’s third-largest automaker hosts a extremely anticipated investor day occasion on Wednesday, Oct. 6.

At the occasion, Chief Executive Officer Mary Barra and different members of GM’s management staff will present an summary of the corporate’s bold long-term transformation progress technique.

The shows—which will likely be broadcast reside on the GM web site beginning at 1:00PM ET—are anticipated to supply contemporary particulars on the corporate’s electrical automobile (EV) roadmap, future manufacturing capabilities, and monetary objectives.

Management may additionally contact on plans to promote its autonomous driving software program, in addition to how the corporate intends to monetize its funding in self-driving ride-hailing firm Cruise.

The occasion is predicted to conclude at roughly 5:30PM ET.

GM Daily Chart

The Detroit, Michigan-based automotive large has thrived this 12 months, with traders rising more and more bullish on the automobile maker because it seeks to shift away from fuel and diesel cars and push into the high-flying EV sector.

By 2035, the U.S. auto large to provide solely electrical autos, together with 30 new plug-in fashions the corporate says will arrive by 2025.

GM inventory, which has outperformed different notable names within the sector for the reason that begin of the 12 months, resembling Tesla (NASDAQ:), Nio (NYSE:), and Toyota Motor (NYSE:), ended at $53.13 on Friday, giving the corporate a market cap of roughly $77.1 billion.

Year-to-date, General Motors shares have climbed by 27.5%, simply outperforming the S&P 500’s 16% enhance over the identical timeframe.

Stock To Dump: Conagra Brands

Shares of Conagra Brands, previously ConAgra Foods (NYSE:), are anticipated to undergo one other risky week as traders brace for disappointing monetary outcomes from considered one of America’s largest packaged-food corporations.

The Chicago, Illinois-based company is scheduled to report fiscal first-quarter numbers earlier than the U.S. market open on Thursday, Oct. 7.

Consensus estimates name for earnings per share (EPS) of $0.48, declining roughly 31% from EPS of $0.70 within the year-ago interval. Revenue, in the meantime, is predicted to fall round 6% year-over-year to $2.52 billion.

Perhaps of higher significance, Conagra’s outlook for the remainder of the 12 months and past will likely be in focus because it offers with the detrimental influence of upper ingredient prices and provide chain points.

When the corporate reported fiscal on July 13, administration that greater commodity costs and delivery logjams will weigh on its full-year efficiency.  

Investors offered the inventory in response, sending shares decrease by greater than 5%.

CAG Daily Chart

The packaged-foods large, which manufactures shopper meals staples resembling Slim Jim beef jerky and Duncan Hines cake mixes, has seen its shares lag the broader market this 12 months, falling 7% in 2021.

CAG inventory closed Friday’s session at $33.70, not removed from a latest 52-week low of $32.26 reached in August. At present ranges, Conagra has a market cap of $16.2 billion.





Source link