As of this writing on February 8, the Dow Jones Industrial Average (INDEXDJX:.DJI) has closed at 13,992, very close to the key technical and psychological level of 14,000. Numerous analysts are commenting that the stock market has reached a so-called “triple top,” as the Dow Jones average reached an all-time high of 14,164 during October 2007.
In addition to reaching near-record levels on the Dow Jones index, the S&P 500 also reached record highs of 1527 during March 2000 and 1565 during October 2007. As of February 8, the S&P 500 closed at 1518, within fractional distance of the March 2000 high.
While I keep a careful eye on the broader market indices, here are three specific stories I’ll be following for earnings after the bell on Monday, February 11.
Annies Inc (NYSE:BNNY)
Monday, Feb. 11 after market close; EPS $0.15 / Revenue $36.60M
Annie’s manufactures and markets a variety of natural and organic foods. The Berkeley, CA headquartered company went public on March 28, 2012 with an IPO priced at $19.00 per share. Shares have zigged and zagged in Annie’s short history as a public company, reaching a high of $48.87 on September 19 before closing at $36.55 most recently on February 8.
The Wall Street community has been universally bullish on Annie’s since the IPO. Currently, the mean (average) price target lies at $42.71, and the highest price target on Wall Street is $52.00. Analysts at Credit Suisse met with company management in December and believe Annie’s has substantial room for growth. Following the stock’s 20% decline in recent months, the analysts believe the current market price is attractive for long-term investors.
On January 22, Annie’s announced a voluntary recall of its frozen pizza products in a press release on its website. The company states there is potential for fragments of metal wire mesh to be contained in the frozen pizza after it was discovered a metal mesh screen failed at a third-party flour mill. Shares have hardly reacted following the announcement, and analysts at both RBC Capital and JPMorgan advised that any weakness in the stock presents a buying opportunity. RBC believes the voluntary recall will likely be considered “old news” in a few months.
Revenue at Annie’s has grown 20% in the last year.
Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH)
Monday, Feb. 11 after market close; EPS $0.01 / Revenue $512.7M
The Miami, Florida based Norwegian Cruise Line recently completed an initial public offering on January 17 at $19.00 per share, and began trading on the NASDAQ exchange on January 18 in the $25.00 range. The initial range for the IPO was set for $16 – $18 per share, but the price increased due to strong demand.
Norwegian, valued at $5.6 billion as of February 8, joins larger competitors Carnival Corporation and Royal Caribbean Cruises on the public exchanges, both of which are also Miami-based.
