American stocks rocketed higher on Friday as investors cheered the relatively weak US jobs data. The numbers showed that the unemployment rate dropped to 5.8% while the economy added fewer jobs than expected.
The data were positive for stocks because the meant that the Fed will have more room to leave its monetary statement intact. The Dow Jones, S&P 500, and Nasdaq 100 indices rose by 180, 37, and 200 points, respectively. Here are the top stocks to watch this week.
AMC and other meme stocks
The AMC stock had an interesting week. It more than doubled to a high of $72.67 and then ended the week at $47.90. The stock doubled after the company announced a new plan to interact with retail investors who hold about 80% of its holding. It then crashed after the management made a decision to sell stock to boost its balance sheet.
Therefore, this week, investors will continue to focus more on AMC and other meme stocks like Blackberry, Build a Bear, Nokia, GameStop, and Bed Bath and Beyond.
Stitch Fix (SFIX)
Stitch Fix will be another key stock to watch this week. The SFIX stock soared to an all-time high of $113 on January 27. This was 1,060% above the lowest level in March last year. This happened since the company grew its sales during the pandemic year as more people stayed at home.
This year, however, the stock has suffered from the ongoing rotation from lockdown to reopening stocks. It has dropped by more than 50% from its all-time high, bringing its total market value to more than $5.90 billion.
The Stitch Fix stock will be watched because the company will publish its quarterly results on Monday after the market closes. Analysts expect the company made $510 million in the first quarter and an EPS of -$0.26. In the past few quarters, the firm has made several revenue and EPS misses. For example, in the most recent quarter, its revenue missed consensus forecasts by more than $8 million.
Advance Auto Parts (AAP)
The AAP stock has done relatively well in the past few months. It is trading at $192.76, which is 168% above its lowest level last year. It is also close to its all-time high of $210 and its market capitalization is at more than $12.68 billion.
The stock will be watched this week because the company will publish its quarterly results on Monday. Analysts expect the revenue to come in at $2.61 billion and its EPS to rise to $2.6. The company has a relatively good track record of doing better than estimates.
Most analysts have a buy rating on AAP stock. Those at Royal Bank of Canada (RBC), Citigroup, Goldman Sachs, and Wedbush believe that the stock can move above $227.
GameStop will be a key stock to watch this week since the company will publish its earnings on Thursday. It will also be watched because it is one of the favorite stocks in platforms like Wall Street Bets and Twitter. Also, the stock is one of the most actively traded in the US.
This year, the GME stock has jumped from less than $20 to almost $500. It is now trading at $250, valuing the company at more than $17 billion.
Analysts expect the company made more than $1.1 billion in the first quarter. This will be relatively higher than what it made in the same quarter in 2020. Still, I expect GME to have benefited from the free advertisement in the first quarter.
GME has missed revenue forecasts in the past nine consecutive quarters. You can read a feature on GameStop by WSJ here.
Chewy was another top beneficiary of the coronavirus pandemic. As more people stayed at home, they turned to the company’s platform to buy pet food and other accessories. This pushed its stock to an all-time high of $120 in February. Like most lockdown stocks, Chewy has dropped by more than 36% from its all-time high. The company will publish its earnings on Thursday. Analysts expect the firm’s revenue jumped to more than $2.1 billion in the first quarter. Chewy has beaten analysts’ forecast in the past three straight quarters.
Other stocks to watch
There are several other stocks to watch this week. Monday.com, the fast-growing collaborating company will go public this week, valuing the company at more than $6.2 billion. Other companies that will go public this week are TaskUs, Marqeta Inc, and 1stDibs.com.
Investors will also watch out for the Pershing Square Tontine Holdings after the company made plans to acquire a minority share in Universal Music Group (UMG) last week. Other companies to watch are Signet Jewellers, Marvel Technology, and Coupa Software.