Competitor Intuit Inc. (NASDAQ:INTU) reported earnings on May 21 after citing a “tough tax season” which caused the company to lower its earnings and revenue guidance. Analysts originally expected that Intuit’s TurboTax would take market share from H&R Block, Inc. (NYSE:HRB), however all indications point to stiff resistance from Intuit’s smaller competitor.
H&R Block, Inc. (NYSE:HRB) has a market capitalization of $7.8 billion, while Intuit has a market cap of more than $17 billion.
Hedge funds remain bullish on H&R Block, Inc. (NYSE:HRB) ahead of the earnings release. According to the most recent insider data, Steve Mandel’s Lone Pine Capital maintains a 2.48% ownership in the tax preparation company.
Yoga apparel and athleticwear
Reports on Monday, June 10 after market close; EPS $0.30 / Revenue $341.2M
Widely-owned among the hedge fund community, Lululemon Athletica inc. (NASDAQ:LULU) is perceived as one of the best growth stock opportunities in the market today.
The company gained publicity in March when it announced its Luon yoga pants were too sheer, forcing a recall on three styles of pants that had been sold. Lululemon Athletica inc. (NASDAQ:LULU) has now re-introduced two of the styles to the delight of customers and news media alike. Analysts are applauding the response of Lululemon Athletica inc. (NASDAQ:LULU) to the incident — while initially viewed as a negative development Lululemon Athletica inc. (NASDAQ:LULU) leveraged the opportunity as free advertising and gained new customers in the process.
For upcoming first quarter results, Wall Street channel checks indicate that Lululemon Athletica inc. (NASDAQ:LULU) is likely to meet or exceed the high end of guidance. A number of investment firms have raised their price target on the stock ahead of earnings. Analysts at UBS raised their target to $90 from a previous $77, while Canaccord Genuity raised their target to $92 from a previous $87.
Foolish takeaway
While the jury remains out if hedge funds can outperform the market in the post-modern era, readers can benefit by studying the actions of large funds and riding on their coattails.
In particular, Annie’s, H&R Block, Inc. (NYSE:HRB), and Lululemon Athletica inc. (NASDAQ:LULU) appear well-positioned ahead of upcoming reports. I believe all three stocks will move higher for the rest of 2013.
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John Macris has no position in any stocks mentioned. The Motley Fool recommends Lululemon Athletica. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Three Hedge Fund Favorites With Upcoming Reports originally appeared on Fool.com is written by John Macris.
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