The stock market posted a solid recovery on Friday. As of just before noon EDT, the Nasdaq Composite (NASDAQINDEX:^IXIC) was up nearly 1% as it looked poised to set another record high.
Earnings season is almost here, and that means investors will be looking for signs of how the economy is doing. Banks typically start out early with their reports, and most big banks don’t trade on the Nasdaq. Although most of the best-known tech companies won’t report their latest financial results until later this month or in August, a couple of key stocks in other parts of the market will weigh in. Let’s look at which key stocks are reporting next week and what they could mean for the broader market’s future.
That’s what shareholders like
Beverage and snack food giant PepsiCo (NASDAQ:PEP) is one of the biggest companies to report results next week. PepsiCo is scheduled to release its second-quarter numbers on Tuesday, July 13, before the market opens.
Investors are pretty upbeat about what they’re looking for from the company. Earnings projections of $1.53 per share would be a 16% rise from year-ago results, while revenue expectations of close to $18 billion for the quarter would work out to year-over-year growth of nearly 17%.
At the same time, though, those following PepsiCo seem largely prepared for a slowdown in growth as the U.S. starts to emerge from the pandemic. As long as the company can continue to gain market share in key areas like snacks and prepared foods, however, investors will likely be forgiving if broader trends weigh on PepsiCo’s results.
The thing for investors to watch from PepsiCo is how it sees the remainder of 2021 going. With the stock having largely been flat over the past year, good news could finally give the soft drink company the pop it needs to get moving in the right direction again.
OrganiGram looks to bounce back
Elsewhere, OrganiGram Holdings (NASDAQ:OGI) is also slated to release its results on Tuesday, July 13. Investors in the marijuana stock can expect to see fiscal third-quarter numbers come out before the market opens.
OrganiGram will be looking to bounce back from lackluster results in its fiscal second quarter back in April. Revenue declined 29% compared to prior-year levels, and net losses ballooned from the same quarter in 2020. CEO Greg Engel blamed the pandemic and ongoing challenges within the cannabis industry for the poor performance. Average selling prices for cannabis products also weighed on results.
Investors took heart from OrganiGram’s assertion that its business would improve as its new portfolio of products became more familiar to consumers. Better staffing levels should also boost performance, although the pace of COVID-19 vaccinations in Canada has been slower than OrganiGram might have preferred to see.
Perhaps the most important thing for cannabis investors to watch with OrganiGram’s results is how the company’s relationship with tobacco giant British American Tobacco (NYSE:BTI) affects the business. As consolidation in the marijuana industry continues, it’ll be important for OrganiGram to take full advantage of its strategic partnerships in order to keep up with competitors.
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