I went out on a limb last week, and now it’s time to see how that decision played out.
- I predicted that Apple Inc. (NASDAQ:AAPL) would close higher on the week. I felt that taking the stage for WWDC 2013 would give the consumer-tech giant the ideal opportunity to win back the market’s waning interest in its products. The new cylindrical Mac Pro is cool. The iOS update is a welcome upgrade. There’s even hope that iTunes Radio will be a game-changer in streaming. However, the stock actually sold off on the news. I was wrong.
- I predicted that the tech-heavy Nasdaq would outperform the Dow Jones Industrial Average (INDEXDJX:.DJI). This has been a tricky call lately, so how did it play out this time? Well, the market closed lower this week. The Nasdaq moved 1.3% lower on the week, but the Dow managed to close 1.1% lower. I was wrong.
- My final call was for Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) to beat Wall Street’s income estimates in its latest quarter. The beauty-salon operator has been posting blowout quarterly results over the past year, and I was banking on seeing the trend continue. Analysts were looking for a profit of $0.62 a share during the quarter, and it came through with net income of $0.65. I was right.
One out of three? Bummer! I can do better than that.
Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.
1. Rite Aid will close higher on the week
Rite Aid Corporation (NYSE:RAD) is no longer the laughingstock of the drugstore industry. The pharmacy store chain hit a fresh five-year high on Friday, and things may only get brighter as it steps up to report its quarterly results on Thursday.
Rite Aid Corporation (NYSE:RAD) has surprised the market with profitable outings in its two most recent periods, and Wall Street sees another healthy profit this time around. Rite Aid Corporation (NYSE:RAD) has managed to easily surpass market expectations over the past year, so another strong quarter should be more than enough to keep the rally going.
My first call is for Rite Aid Corporation (NYSE:RAD) shares to move higher for the week.
2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not.
I’m going to stick with this pick. Most of the names in the composite are just too cheap at this point, and tech should be what carries us through the economic recovery. The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.