Micron to shine. FedEx and WiseTech to up their ante. ASX Ex-dividend stocks to watch
In case you were sleeping under a rock, Nvidia $NVIDIA(NVDA.US$ briefly became the world's biggest company last week, amassing a market cap of US$3.34 trillion, overtaking Microsoft $Microsoft(MSFT.US$ before succumbing to profit taking and now trades 10% down from its record high. Still, Nvidia is rated a buy by 89% of sell-side analysts with its revenue expected to grow 98% next year. This is just an example of what can happen toward end of half year and EOFY for that matter.
So while dip buyers will be swirling around Nvidia, and others may trim profits ahead of end of June 30, we need to also highlight that Micron $Micron Technology(MU.US$ will be a focus this week; a potential star due to its ties to Nvidia. Plus eyes will be on the potential spill over from the Trump-Biden debate, that could cause uranium stocks to see profit taking. Aside from that, Australian investors should watch stocks that could benefit from a better than expected FedEx $FedEx(FDX.US$ result (.ie watch Wisetech $WiseTech Global Ltd(WTC.AU$ ) and Aussies should be watching stocks going ex-dividend, in property in infrastructure this week as it could cause extra stock price fluctuations.
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This week's US major corporate earnings reports are expected to show a continued focus on Artificial Intelligence (AI) and a stronger-than-expected global economic performance.
Micron Technology $Micron Technology(MU.US$ (Wednesday):This chipmaker's revenue could significantly impact Nvidia's balance sheet, making it a stock to watch.
Carnival $Carnival(CCL.US$ and FedEx $FedEx(FDX.US$ (Tuesday):These companies' results might shed light on the recovery of the travel and freight industries, respectively. Consider ASX freight tech company Wisetech alongside FedEx for a broader view of the freight market.
General Mills $General Mills(GIS.US$ and Nike $Nike(NKE.US$ (Wednesday):Earnings from these consumer giants can offer insights into consumer spending habits.
Walgreens Boots Alliance $Walgreens Boots Alliance(WBA.US$ (Thursday): This company's report might provide clues about the health and wellness sector.
Micron Technology. An AI beneficiary to be reckoned with
Micron $Micron Technology(MU.US$ has seen the most analyst earnings upgrades in the S&P 500 over the last three months. This is because they're expected to benefit from a unique situation:
Reduced Capital Spending (2023): Micron cut back on capital spending in 2023.
Price Increases.They raised prices this year and are expected to continue to do so in 2024.
Nvidia Collaboration: Their high-bandwidth memory (HBM) sales to Nvidia are expected to contribute to quarterly sales for the first time as Nvidia $NVIDIA(NVDA.US$ ramps up H100 GPU sales (launched this quarter).This collaboration alone could generate several hundred million dollars in revenue for Micron in fiscal 2024 and be a significant long-term driver of earnings growth.
Micron's Strong Position:
Micron shares are up 63% this year, making them a top-five performer in the S&P 500.
92% of analysts rate Micron as a "buy" with a consensus price target of US$155.50, implying 11.4% upside from the Friday close of $139.54.
Overall, Micron seems like a stock to watch due to the early stages of growth in chipmaker HBM sales. This could lead to significant free cash flow and an 89% increase in earnings growth for Micron in the next quarter (ending August).
ASX Ex-dividend stocks
Down under in Australia, there are a swag of property and infrastructure groups that go ex-dividend, which will bring extra volatility so keep these stocks on your radar.
It's important to watch ex-dividend stocks because it affects the stock price and your eligibility to receive the dividend payout. Here's a breakdown:
Impact on Stock Price: When a company declares a dividend, the stock price typically drops by roughly the amount of the dividend on the ex-dividend date. This is because the new owner (who bought the stock after the ex-dividend date) won't be entitled to receive the upcoming dividend payment.
Dividend Eligibility: To be eligible to receive a dividend payout, you need to be a shareholder of record on the record date (typically set a few days before the ex-dividend date). If you buy a stock on or after the ex-dividend date, you won't receive the next dividend payout.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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