5 Reasons Not to Worry This Week: Smith & Wesson Holding Corporation (SWHC), Ciena Corporation (CIEN)

Hovnanian isn’t likely to turn a profit. It has only scored two profitable quarters since the real estate bubble popped in late 2006. The key here, though, is that analysts see a dramatically narrower deficit this time around.

Ciena is another company targeted for a narrower quarterly shortfall. The optical networking specialist’s expected to post a deficit of $0.13 a share, improving on the prior year’s loss of $0.17 a share.

It’s not pretty. Ciena Corporation (NASDAQ:CIEN) has actually posted larger deficits than the market was expecting in three of the past four quarters, but the climate is starting to gradually improve for networking companies.

Finally, we have Ferrellgas Partners. The propane gas distributor is set up as a limited partnership, yielding healthy 9.6% returns for income investors in the form of quarterly distributions.

Revenue is slipping at Ferrellgas, but analysts still see profitability soaring nearly 75% when it reports on Thursday.

Cross those fingers, but know the fundamentals
Investors in these five stocks have a right to be excited. They are all improving their financial situations. They are worthy of the gains that the market rally has bestowed upon them over the past year.

I wouldn’t be uncomfortable owning any of these companies. They’re doing the right thing, regardless of Mr. Market’s mood swings.

The expectations may be high, but these five stocks wouldn’t have it any other way.

The article 5 Reasons Not to Worry This Week originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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