3 Stocks To Watch In The Coming Week

Last Updated June 24th 2021

5 Min Read

Since the coronavirus bear market, the stock market has rebounded all the more powerfully in 2021. Today there are thousands of stocks trading on the NYSE and Nasdaq platforms. Buying a stock might be an easy task, but choosing the right one without a time-tested strategy is extremely hard.

The stock market, as always, has new surprises in store for this year. The market successfully pulled back after the latest Fed meeting. In the meeting, policymakers signaled that they expect to raise interest rates by late 2023, which is sooner than expected. Further, the sell-off intensified when St. Louis Fed President James Bullard told CNBC that he sees the Fed starting to raise the interest rates in 2022.

Despite volatile conditions, few stocks that have been performing well for a long time are primed to continue doing so in 2021. Here are the 3 best stocks to watch in the coming week.

3 Stocks To Watch In The Coming Week

#1 Nike (NKE)

Nike is the undisputed market leader when it comes to popular athletic apparel. The sportswear giant had a good rally over the past few years, even during the coronavirus pandemic. As per recent announcements, it will release its fiscal 2021 fourth-quarter earnings on June 24, just after the market close. On average, analysts and experts estimate $0.51 a share profit on sales of $11.09 billion.

Nike stock had a tremendous online presence and reached an all-time high just after it hit social media platforms. The company is directly engaging with its consumers through activity apps. This is the core benefit of Nike’s strategy as it leads to increased purchases through consumer apps. Therefore, Nike’s digital sales are growing rapidly, and the management sees more acceleration to it in the coming days.

E-commerce has always been a massive asset to Nike’s overall growth, especially over the past year. Therefore, its strong brand and its intelligent digital strategy have positioned the athletic footwear maker of Air Jordan sneakers as one of the best stocks to watch in the coming week.

Nike shares are under pressure this year following a strong rally after the COVID-19 plunge last year. As economics has reopened in Nike's two major markets, the US and China, investors are waiting for further signs of recovery in its sales. Experts predict that if Nike can report a strong recovery in its sales, the stock might break out and begin its bullish rally this year.

Despite a global recession and disruptions in the market, the Nike earnings and sales outlook still looks solid and bullish. The company is focusing on innovation and boosting its margins this year. It is poised for long-term growth with its incredible online presence and new plans in store.

#2 FedEx (FDX)

The shares of the world’s largest parcel delivery service, FedEx, had quite a rough start at the beginning of 2021. But it rebounded after a strong fiscal third-quarter report followed by United Parcel Services’ huge beat on April 27. The recent events drove FedEx to knock on the doors of that $300 price point and the all-time high of December 2020, once again.

This mega-cap company is all set to report its fiscal 2021 fourth-quarter earnings this month. Analysts expect earnings per share of $4.98 on sales of $21.47 billion, on average.

What makes FedEx the best stock to watch in the coming weeks is its profitability from the freight business and its high-margin ground business, led by e-commerce. The delivery business is one of the inevitable parts of the global economy. The latest releases show that the business is booming as it conveniently caters to the accelerating pandemic field demands in the market.

Therefore, the pandemic has likely brought in some significant growth for FedEx. Even after the stock’s remarkable run-up in 2020, it looks highly poised to deliver further gains this year too. It is expected to earn more margin gains as the year goes on, as Sunday deliveries allow the company to gain more productivity from its assets.

FedEx shares have gained over 10% this year. With its latest TNT integration and other significant initiatives taken by the company to expand its margins, the growth stock is expected to hit a record high by the end of 2021.

#3 Paychex (PAYX)

Paychex has grown significantly over the past few years by offering payroll, human resources, retirement, and insurance services worldwide through its platform. It provides industry-leading service and technology solutions to its clients and their employees.

Investors will be focusing on the latest quarterly earnings from Paychex, which is scheduled to release on June 25, ahead of the market open. Paychex is expected to report $0.67 a share profit on sales of $980 million, on average. The Rochester, New York-based payroll processing and human resources company has also been in 32 hedge fund portfolios in the first quarter of 2021, boosting its popularity.

As the company's aggregate interests increased, larger money market companies like ExodusPoint Capital, managed by Michael Gelband, have also created a unique position in PAYX. It had invested over $2.5 million in Paychex at the end of the quarter.

Through its payroll data, Paychex results offer deep insight into the health of small and medium companies. It includes almost 35,000 small business clients, their employment, wage trends, and impacts by sector.

Martin Mucci, President and CEO of Paychex, said in the earnings statement in April that, “Client retention remains strong and at record levels, and our results for the third quarter show that our resilient business model has helped us navigate the uncertainties created by COVID-19.”

The company also had several upgrades, of which one is the HR Conversations. It provides employers with a two-way messaging channel with remote workers via its mobile app.

Pay-on-Demand is yet another upgrade that allows employers to pay workers quickly and offer the flexibility to pay on various shifts. Moreover, the new Paychex Flex Help Center provides proper training and resource access to clients using predictive learning and natural language processing.

Therefore, Paychex has successfully positioned itself as one of the best 3 stocks to watch in the coming week. Also, with its solid business model, diverse products and services, strategic acquisitions, and high retention rate, the company is poised for top-line growth for the coming years.

Check Out: 10 Best Growth Stocks to Buy

The Bottomline

This is the best time to look for potential stocks that you can now add to your watchlist. Along with research, superior fundamentals, and technical action, buying stocks at the right time is also an integral part of a wise investing formula.

If you are looking to expand your investment portfolio with some of the top-line potential stocks, the 3 stocks mentioned above are the best to watch in the coming week.