These 2 Stocks Could Make or Break the Market This Week – The Motley Fool


- Advertisement -

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Investors have struggled through bear market conditions in 2022, and it’s far from clear whether the worst is over for the stock market. Even as market participants try to anticipate whether the economic slowdown will blossom into a full-blown recession and what impact it could have on financial markets, many hope for the same kind of year-end rally that has materialized in many years.
Although earnings season has largely ended, some high-profile stocks will share their latest financial results with investors over the course of this week. Among those companies issuing reports, Snowflake (SNOW -2.52%) and Dollar General (DG -1.61%) will give shareholders a comprehensive view of the current state of the economy and how it’s affecting businesses of different types.
Snowflake is set to release its latest financial report on Wednesday, Nov. 30, after the market closes for the day. Investors are anxious to see whether its fiscal third-quarter report for the period ending Oct. 31 will show continued growth or a potential slowdown for its data cloud business.
Snowflake’s previous results for the quarter that ended July 31 were extraordinarily good. Product revenue soared 83% year over year to $466 million, and the company saw net revenue retention remain high at 171%. Adjusted free cash flow climbed sharply, and Snowflake had 246 customers producing at least $1 million in annualized product revenue.
Moreover, Snowflake sees its growth rates remaining high well into the future. For the full fiscal year, the company anticipated product revenue to grow 67% to 68% to roughly $1.91 billion. Investors now expect even more from the company, pressing for Snowflake to get above the 70% mark for top-line growth.
Investors seem to be concerned about whether demand for Snowflake’s data cloud platform will remain as robust as it has in the past. In particular, with other software-as-a-service (SaaS) providers having reported signs of slowing spending from their respective client bases, it’s an open question whether Snowflake could see the same kind of drop-off in enterprise spending. With the stock down 60% from its highs, there’s room for a rebound in Snowflake shares if the news proves to be good.
Dollar General is also set to report its latest quarterly results this week, with the dollar store retailer laying it out on the table on Thursday, Dec. 1, before the market opens.
Dollar General’s second-quarter results for the period ended July 29 showed solid performance. Net revenue rose 9% year over year to $9.4 billion, with same-store sales climbing 4.6%. Earnings got a slightly larger 11% boost from year-ago levels to $2.98 per share, and the retailer reported slight increases in customer traffic and growing market share in consumable products. Inventory levels rose dramatically, but the company projected full-year sales growth of 11% and same-store sales gains in the 4% to 4.5% range.
Investors have high hopes for the discount retailer’s financial release, projecting double-digit percentage gains in both sales and profits. After seeing a slump in 2021 following an extremely good year in 2020, Dollar General is now poised to resume its former growth path and demonstrate its ability to woo new shoppers who are looking for more value than they can get from higher-priced department store retailers.
While Snowflake gauges demand for business-to-business services, Dollar General will provide a key look at the health of the consumer. With inflation still putting pressure on personal finances, the trends Dollar General identifies will be relevant to the entire consumer economy.
Dan Caplinger has positions in Snowflake Inc. The Motley Fool has positions in and recommends Snowflake Inc. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/29/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.


- Advertisement -


Please enter your comment!
Please enter your name here

Share post:




More like this

Dollar holds fast ahead of Fed decision, sterling falls on cool UK inflation

The dollar remained firm on Wednesday ahead of a...

Yellen says she trusts IMF, World Bank, Morocco to adjust annual meetings after disaster

U.S. Treasury Secretary Janet Yellen said on Tuesday that...

Oil falls more than $1 ahead of Fed rate decision

Oil prices fell by more than $1 on Wednesday...

TotalEnergies to invest $300 mln to form JV with Adani Green

French oil major TotalEnergies will invest $300 million to form...