Stocks To Watch Next Week

Stock markets got rocked last week on renewed fears of Covid variant “Omicron” surging in parts of Africa and Europe.  Fortunately, our members were heavily in cash equivalents the days leading up to the selloff.  Now that the weekend has passed and some calming in the markets has transpired we see opportunities ahead.  For next week, there are a slew of companies reporting earnings results and we will focus trading and investing plans on the below names;

Bank of Nova Scotia $BNS.  Canadian banks begin to report quarterly results next week beginning with $BNS.  We like how the company is most exposed to international banking amongst the Canadian big banks.  We also believe the company’s wealth management division performed above estimates amid strong capital markets.  Last week the stock pulled back in the selloff and we see it as a buy before ER on Tuesday morning.  So our bias is to go long and we would add Jan 21/22 Calls and hedge with a Dec 3/21 Put.

DocuSign $DOCU.  The company has benefitted from the pandemic shift to e-signatures across all types of sectors and business applications.  Last quarter the company reported strong growth amid concerns of slowing growth due to the re-opening of economies.  The shift to e-signatures is intact and in fact, growing.  On Thursday after markets close the company reports ER and we believe they beat analyst estimates and grow subscribers and clients.  So our bias is to position long with Dec17/21 Calls and hedge with a Dec 3/21 Put.

NetApp Inc $NTAP.  The company is reporting ER after markets close on Tuesday.  Last quarter the company reported record results which included 25-30%+ year over year growth in all its product lines as the continued momentum in cloud-based applications persists.  Additionally the company raised its forward looking guidance and we believe the company will beat estimates for its latest reporting quarter.  Fundamentally, the company trades at a current P/E of 10 X’s earnings, really cheap for a fast growing technology company.  So our bias is to go long with Jan 21/22 Calls and hedge with a Dec 10/21 Put.

Stocks To Watch Next Week