Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The Stock Movers report,
Speaker 1: your roundup of companies making moves in the stock market,
Speaker 1: harnessing the power of Bloomberg data.
Speaker 2: Let's take a look now at some stocks making news
Speaker 2: in the week ahead. I'm Alexis Christophers with Tatiana Dari,
Speaker 2: a Bloomberg strategist for Markets Live. Tatiana, you brought three
Speaker 2: names with you. Let's begin with if you're a pet owner,
Speaker 2: you know them well.
Speaker 3: Chewy Chewey exactly. Chewey will report fourth quarter earnings and
Speaker 3: next week, and analysts are expecting a solid profit increase
Speaker 3: versus the year ahead, and that may come to help
Speaker 3: the stock revive some of that momentum because it has
Speaker 3: come under pressure this year on concerns over growth and
Speaker 3: the profitability outlook for this year and next year. And
Speaker 3: analyst and Morgan Stanley expect this print to set the
Speaker 3: tone for the year ahead. And they expect full your
Speaker 3: guidance of about seven to seven and a half of
Speaker 3: revenue growth. So remember that number because anything less than
Speaker 3: that could come to pressure the stock again. The company
Speaker 3: you know has named a new CFO in February reaffirmed
Speaker 3: its financial outlook, so it has tailwinds in place. Its
Speaker 3: revenue has been steadily climbing through the years, even as
Speaker 3: we've seen consumers come under pressure from all prices rising elsewhere. Basically,
Speaker 3: so has it has a momentum there. It's just that
Speaker 3: when people are looking ahead, they're concerned about consumers pulling
Speaker 3: back now with high oil prices, So we sort of
Speaker 3: need to see revenue outlook and that guidance be lifted
Speaker 3: so that the stock investors feel more reassured.
Speaker 2: You know, it's interesting when you talk about consumer spending,
Speaker 2: because sometimes we'll pull back on things for ourselves, but
Speaker 2: I think history has shown people don't know, necessarily pull
Speaker 2: back for their pets. They're still going to pay for
Speaker 2: their pets. Also, they have their Chewy vet clinics that
Speaker 2: I guess are in stores. I understand that's going to
Speaker 2: be a bigger part of the Chewy story, I guess
Speaker 2: in twenty twenty six.
Speaker 3: Yes, exactly, a push there. And they also have their
Speaker 3: sort of revenue or their online platform or you can
Speaker 3: schedule deliveries, and that's also been a big focus for
Speaker 3: the company and for the stock. But yet again, as
Speaker 3: those growth concerns have been battering the stock. It will
Speaker 3: be very important for them to go back to what
Speaker 3: analysts have been saying to a bet and raise cadence,
Speaker 3: which they have not had in recent quarters. We have
Speaker 3: a great function on the terminal where you could see
Speaker 3: how results have been coming in pitted against expectations, and
Speaker 3: five or four of the past five have not really
Speaker 3: been great. The last one was better, which sets up
Speaker 3: hopes that this one will come in also better than
Speaker 3: next part.
Speaker 2: And just want to add Morgan Stanley kept its overweight
Speaker 2: rating on Chewy, trimming its price target to fifty dollars
Speaker 2: from fifty one, saying the stock is offering a quote
Speaker 2: compelling entry point following its recent decline. So Chewy on
Speaker 2: the move here in the coming week. Also, beyond Meat,
Speaker 2: which I know is dropping the name meat from its
Speaker 2: from its official title, right, tell us what we can
Speaker 2: expect there.
Speaker 3: Well, the maker of alternative meat product is also did
Speaker 3: to report, but expectations here are much lower because they've
Speaker 3: already reported preliminary revenue and it came below expectations. With that,
Speaker 3: they also said that they will delay the filing of
Speaker 3: their ten K annual report because the company requires additional
Speaker 3: time to complete a review and analysis related to its
Speaker 3: inventory balances. And you know when you get messages like that,
Speaker 3: that always books the market. And this is something that
Speaker 3: this company did not need because if you look at
Speaker 3: the long term chart, the stock has fallen dramatically since
Speaker 3: it's much talk to IPO in twenty nineteen. It's lost
Speaker 3: more than ninety percent of its value since then. So
Speaker 3: it really doesn't have a good story. It keeps getting worse,
Speaker 3: and it doesn't have a good track record when it
Speaker 3: comes to earnings either. Four of the past five quarters
Speaker 3: have seen earnings really disappoint expectations and shares fall as
Speaker 3: a result. So the bar is pretty high here for
Speaker 3: a surprise.
Speaker 2: Yeah, and you know, I know they're trying to expand
Speaker 2: beyond fake meat. They're rebranding as Beyond the Plant Protein Company.
Speaker 2: They're introducing these new products like high protein sparkling drinks
Speaker 2: and what they call simplified plant protein foods. We'll see
Speaker 2: if it's you know, that's what it takes to turn
Speaker 2: things around. All right, let's squeeze Carnival in here. The
Speaker 2: cruise line. How are they doing or how are they
Speaker 2: expected to do?
Speaker 3: Carnival reports before the bell on March twenty seven. What
Speaker 3: the street wants to know here is how much will
Speaker 3: higher oil prices impact its year head of look, this
Speaker 3: is sort of the big question when it comes to
Speaker 3: earning forecasts, just overall. In the S and P five hundred,
Speaker 3: but specifically to Carnival, Morgan Stanley identified the name as
Speaker 3: the most exposed among cruise liners to oil prices because
Speaker 3: it does not hedge, which they reckon that this would
Speaker 3: translate into about a forty five hit hit to its
Speaker 3: EPs outlook, or that's about a twenty percent hit to
Speaker 3: its overall guidance if you want to think in percentage terms. Okay, well,
Speaker 3: if you look at the stock, that's about how much
Speaker 3: it has fallen since the war has started. So basically
Speaker 3: you could argue that the market has baked that in already. Okay,
Speaker 3: But although this is an estimate, not a confirmation from
Speaker 3: the company, so we'll have to see if that comes
Speaker 3: in sort of a higher or lower than expected. But
Speaker 3: the point is that the market has already baked in
Speaker 3: some bad news. Now we have to see how bad
Speaker 3: will the news actually be.
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