VIDEO: Upcoming Earnings Reports Will Impact These Five Holdings

In today’s Daily Rundown video Chris reviews Monday's Portfolio actions, including the addition of VanEck Uranium and Nuclear ETF NLR shares to the Portfolio. He discusses support levels we’ll be watching to add more shares and adds that Bob Lang will share his technical take on the shares later on Tuesday. 

In terms of Lockheed Martin’s LMT earnings report on Tuesday morning, he chews on the items we’re listening for on the company’s earnings call, and shares his initial thoughts on potential price target revisions.

Chris also shares the roadmap of earnings reports we’ll be parsing through after Tuesday's close and Wednesday morning as it relates to our holdings in Apple AAPL, Qualcomm QCOM, Universal Display OLED, Dutch Bros BROS, the First Trust Nasdaq Cybersecurity ETF CIBR and Applied Materials AMAT. Because we have five Portfolio companies reporting after Wednesday's close, our next set of Portfolio Office Hours will be Wednesday, February 5. 

Transcript

CHRIS VERSACE: Hey everyone, Chris Versace here, Tuesday, January 28th. And as I'm sure you can see, the market is attempting to rebound, following the big sell off yesterday. That includes the AI and data center stocks that really fueled the market sell off that we experienced, again, yesterday.

As you likely saw by now, we used that sell off to pick up more shares of Nvidia, Marvell, and Eaton yesterday afternoon. And we also started a new position for the portfolio in the Vaneck Uranium and Nuclear ETF, ticker symbol NLR.

We kind of did this, one, because we recognize the looming pain point that not only supports our position in Eaton shares, but we are seeing a growing number of announcements, transactions, if you will, regarding the use of nuclear power to power data centers.

So with the pullback that we saw in our shares yesterday, we wanted to pick some up for the portfolio, after calling them initially to the bullpen yesterday. And we did.

I believe Bob will be having a technical look at the shares later today. But I will reiterate that we will continue to watch the 200-day moving average rather closely for NLR shares. It is a rather small position for the portfolio. But if we see the shares kind of bounce up against that 200-day moving average, that could be a nice opportunity to scoop a couple more shares up.

This morning, we did have some news from one of our companies. Lockheed Martin reported. And it was kind of a mixed bag, as we shared in our initial comments. And we will have some further comments once we've completed digesting the company's earnings call.

As we shared in our initial note, we do have some questions about the disconnect between the expected top-line growth, the expected profit growth on the operating line, but not quite so much flowing through to the bottom line.

Yes, we know that some of it has to do with some pension adjustments, which we see with Lockheed from time to time. But we want to have a clear understanding, just to make sure that there's-- is there anything else that we need to be mindful of?

And as we pointed out in the alert, the company is looking for strong cash flow. They are targeting about 3 billion in share repurchases. So we just want to make sure that we understand all the puts and takes as it relates to the bottom line.

I also reminded you folks in that alert that we know that we will be adjusting our Lockheed Martin price target, most likely lower. We've talked about this, how we've been waiting for the updated delivery schedule.

But candidly, we have to factor in this pension adjustment. It is going to slow EPS growth, at least relative to what folks were thinking we were going to get. So that means we're going to have to, at a minimum, adjust our price target for Lockheed Martin share. So we'll be doing that later this afternoon, again, once we've digested the entirety of the earnings call and got some answers to the questions that we have.

In terms of the roadmap for this afternoon, good news, sort of. We have no portfolio companies reporting after today's close. But we do have several earnings reports that we will want to pay attention to.

F5 Networks will be reporting. And what they say about cybersecurity demand, the potential impact on demand for cybersecurity solutions due to AI, well, that is something that we're going to want to listen to as it relates to not only our cyber shares, but also it could potentially help us get ready for what Microsoft and Elastic might say about their cybersecurity businesses.

We also have Corvo Rf Semiconductor reporting. They're a known supplier to Apple. So we will be rather interested in their outlook for smartphones in the first quarter. But also, what do they see shaping up for most of 2025?

Obviously this is going to have some impact ahead of Apple's expected earnings on Thursday. But it'll also help set the table for quarterly results from Qualcomm next week and OLED, or Universal Display, in the next several weeks.

Rounding out the reports we'll be watching tonight, we have Starbucks reporting. And we're not involved there. You know that. But we are interested in what they have to say about traffic, input particularly coffee, dairy, and a few other things as it relates to our position in Dutch Bros.

Now, tomorrow morning, early, the earnings season continues. So tomorrow morning, we don't have any companies reporting. But there will be two in particular we want to pay attention to, ASML, given our position in Applied Materials. But we also want to hear its perspective on AI demand and other demand for semiconductor capital equipment. We also have Corning reporting. We'll be interested in what it has to say about its smartphone-facing business, but other connected devices, tablets and the like, as well.

Now, things are going to get extremely busy for us after tomorrow's close. Why? Well, we've got Meta, Microsoft, ServiceNow, United Rentals, and Waste Management reporting. This means that we are going to suspend office hours for this week and look to pick them back up next week. It's just a lot of stuff to digest, particularly for our holdings. So we're going to, again, push off office hours to the following week. But don't worry, we will be back.

And remember, too, with tomorrow, we also have the Fed's policy statement and remarks from Fed Chair Powell. So once we segue into the afternoon hours tomorrow, it's going to get extremely busy, or as I like to say, real busy real fast. So I'm going to remind you, please be sure to check your emails, your alerts. We're going to have a lot to share. And we don't want you to miss it.

So that is today's video. We will have more comments coming. Again, check your emails, check your alerts. Check your emails, check your alerts. We'll see you soon.

At the time of publication, TheStreet Pro Portfolio was long NLR, LMT, QCOM, OLED, BROS, CIBR and AMAT.