Stocks to watch: Caesars acquisition, Fedex and Lennar Earnings, Factset Research. Let’s see what is expected about them
Last week, global stocks continued to rally after receiving a boost from the Federal Reserve. The central bank, which released its monetary decision on Wednesday, indicated that it could indeed cut interest rates in the next few months. If it indeed cuts rates, it will be in response to the slowing of the US and global economy as the trade war bites.
This week, investors will focus on the following key companies.
Caesars Acquisition by Eldorado Resorts
Earlier on Monday, Bloomberg reported that Eldorado resorts, which is valued at almost $4 billion was planning to acquire Caesars, which is valued at more than $6.72 billion. The deal was announced on Monday and has valued Caesars at more than $8 billion.
This is the first major deal in a few years in the gaming industry and will be paid for by cash and stock. In recent months, Caesars has been under pressure by Carl Icahn, the activist investor to sell itself after years of underperformance.
This year, Eldorado shares have risen by 17% compared to the 12% decline of the Caesars stock. The overall index that tracks casino and gaming companies has dropped by about 20% this year.
Renault and Fiat Chrysler
The two companies will be in the spotlight this week as investors hope that the merger talks will be restarted. Fiat ended the previous talks after the French government, which owns a significant part of Renault, asked for more time. It intended to use this time to bring Nissan onboard. Nissan owns a significant share of Renault while Renault owns a significant share of Nissan.
If the two companies merge, it will help to diversify their income. Fiat Chrysler makes good money from the United States while Renault does not have any share in the country. Nissan and Renault on the other hand generate revenues from Europe, China, and other emerging markets.
It will be the third-biggest auto company in the world after Toyota and Volkswagen (like we told in our previous post)
Fedex is one of the largest shipping companies in the world with a market value of more than $43 billion. The company released its earnings on tuesday. These numbers was expected to show that the company had revenues of more than $17 billion and an EPS of $4.86. In the previous quarter, the company had revenues of $17 billion and an EPS of $3.03.
The company’s results are usually very important because they act as a barometer of the world’s economy.
Lennar is one of the biggest home building companies in the world with a market value of more than $16 billion. Because of the importance of the home industry in the United States, the company is closely watched by the market.
The company released its results on tuesday, which was expected to show revenues of $5.03 billion and an EPS of $1.15. In the previous quarter, the revenues of $3.94 billion and $0.74 missed the analysts’ forecast of $4.04 billion and $0.75 respectively.
Factset Research is a company that provides data to investors and policymakers. It is one of the few companies in the industry that are public. The biggest of them is Bloomberg, which remains being private. Thomson Reuters was recently acquired by a group of private equity investors. The company, which is valued at more than $11 billion has released its earnings on tuesday. Investors expected it to show revenues of $359 million and an EPS of $2.37.
Other companies that will release this week are Rite Aid, which will release on Wednesday. It will be followed by Accenture, Conagra, and Nike on Thursday and Constellation Brands on Friday.