Investing

Earnings Preview: Barrick, Exelon, GM, SunPower, Stratasys

Analysts are more cautious about GM’s future, with just nine of 24 firms rating the shares as a Buy or Strong Buy. At a price of around $56.90, the implied upside on the shares is 18% at the consensus price target of $67.19 and 49% at the high target of $85.

For the March quarter, analysts are expecting EPS of $1.04, up about 67% year over year, on sales of $32.67 billion, a slight decline in revenue. For the full year, analysts are looking for EPS of $5.24, which would be a gain of nearly 7%.

GM stock trades at 10.8 times expected 2021 EPS, 8.9 times estimated 2022 earnings and 9.0 times estimated 2023 earnings. The stock’s 52-week range is 20.12 to $63.44. GM has suspended its dividend. Average daily trading volume is more than 20 million shares.

SunPower

Solar panel maker SunPower Corp. (NASDAQ: SPWR) saw its share price rise by more than 400% in 2020. The rocket did not begin to lose altitude until late January, after adding another 110% to the stock price in the first month of the year. As of last Friday’s close, the shares are down about 2.2% for the year to date.

Analysts are doing a good job of curbing their enthusiasm for the shares, as just three of 13 rate SunPower stock as a Buy or Strong Buy. At a trading price of around $25.00, the upside potential is almost 22% at the consensus price target of $30.43 and 96% at the high target of $49.

The consensus estimate for the March quarter calls for SunPower to report a break-even quarter, better than the $0.09 per share loss a year ago. Revenue is expected to be down by nearly a third at $305.14 million. For the full year, EPS is forecast at $0.29, compared to a loss of $0.07 per share last year. Revenue is forecast to rise by nearly 34% to $1.51 billion.

SunPower trades at around 62.9 times expected 2021 EPS, 37.9 times estimated 2022 earnings and 25.0 times estimated 2023 earnings. The stock’s 52-week range is $3.99 to $57.52. SunPower does not pay a dividend, and the average daily trading volume is more than 5 million shares.

Stratasys

3D printer maker Stratasys Ltd. (NASDAQ: SSYS) had a wild ride in 2020, as shares plummeted 40% by late October but recovered all that and a bit more to end the year 2.5% higher. For the year to date, shares are up nearly 5% after shooting higher by more than 160% in mid-February. ARK Invest, the investment management firm led by Cathie Woods, holds nearly 12% of the company’s stock in four of its funds.

Analysts have taken a wait-and-see position on Stratasys stock, with 13 of 18 rating the shares as a Hold. At a current trading price of around $21.70, the shares have upside potential of 47% to the consensus price target of $32 and an upside potential of 84% to the high target of $40.

Analysts expect Stratasys to post a loss per share of $0.06 in the March quarter, a sharp improvement from the $0.19 per share loss a year ago. Revenue is expected to be down less than 1% at $132.2 million. For the full year, analysts are forecasting a loss per share of $0.05, an improvement over the $0.25 loss per share a year ago. Revenue is forecast to rise by more than 8%.

Stratasys is not expected to post a profit in either 2021 or 2022. The shares trade at 84.8 times estimated 2023 earnings. The stock’s 52-week range is $11.89 to $56.95. The company does not pay a dividend, and the average daily trading volume is about 2.3 million shares.