4 Stocks With a Lot to Prove in November
Image source: Disney.
It's a new month, but November won't be just any month for a few companies. Disney(NYSE: DIS),Fitbit(NYSE: FIT),Zoe's Kitchen(NYSE: ZOES), and GoPro(NASDAQ: GPRO) have a lot riding on events that will play out in the coming weeks.
Will the looming catalysts be positive or blow up in investors' faces? Let's size up why all four of these stocks could be in for a wild month.
Open mouse
Disney's world is spinning out of control these days. ESPN ratings continue to drop, and attendance at Disney's Florida theme parks has slipped through the past couple of quarters. This sets the stage for the media giant to report quarterly results for its fiscal fourth quarter next week.
We've heard third-party reports of slumping cable subscribers for ESPN and Disney's other cable properties. There's also anecdotal evidence that it was an unusually quiet summer at its theme parks. Disney will make the metrics official next week, and for a stock already shedding nearly a quarter of its value since peaking 15 months ago it's going to be an important time to show that it's turning things around in its two largest businesses.
Taking you by the wrist
Fitbit put out a pair of new fitness trackers in September, and we're about to find out how robust initial sales were for Charge 2 and Flex 2. Fitbit reports after tomorrow's market close.
Sales have remained strong at Fitbit, but margins have been contracting in recent quarters. The stock has surrendered more than half of its value so far in 2016, despite the growing popularity of its wearable tech products. Tomorrow's quarterly report will probably rock the stock one way or the other.
Med games
Restaurant stocks have been generally rocked this summer, but few have had it as bad as Zoe's Kitchen (NYSE: ZOES). The growing chain of fast casual eateries specializing in Mediterranean cuisine is trading 39% lower since announcing its second quarter results.
Zoe's Kitchen didn't have a horrendous report. Revenue's still growing, and comps remain positive. However, tweaking its guidance slightly lower for the balance of the year was enough to send the richly valued shares plummeting. Zoe's reports on Nov. 14. How well it fares relative to its cautious guidance is important, but we already know that the new outlook it pushes out can also move the stock.
Cameras take flight
GoPro has once again left us waiting for a drone. GoPro's Karma drone was originally slated for release during the latter half of this year. A Sept. 23 date was eventually given, but that was pushed out to Nov. 14 -- and then to Nov. 28 -- last week.
A search brings up a problematic "Coming Spring 2017" date for the Karma shopping page description, though the website itself still shows Nov. 28 as the device's ship date. GoPro is going to have a lot of explaining to do if it misses out on the critical holiday shopping season.
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Rick Munarriz owns shares of Fitbit, Walt Disney, and Zoe's Kitchen. The Motley Fool owns shares of and recommends Fitbit, GoPro, Walt Disney, and Zoe's Kitchen. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.