3 Big Movers for Next Week

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3 Stocks That Could Make Huge Moves

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Two variables colliding should send shares of these three companies on a wild ride.

Transcript of 3 Big Movers for Next Week

Page 1: 3 Big Movers for Next Week

3 Stocks That Could Make Huge Moves

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Acuity Brands (NYSE: AYI)

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Why Are Investors So Negative?1. Acuity’s stock has doubled since last January,

leading some to believe the stock needs to cool off.

2. Currently, shares trade hands at an expensive 37 times free-cash-flow and earnings.

3. The company focuses on lighting solutions for business and residential customers. Though the trend towards energy efficiency is strong, some wonder if housing starts and home renovations will be strong enough to justify the stock’s price.

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Here’s What to WatchWall Street Expectations• Currently, 6% of Acuity

Brands’ shares are sold short.

• Analysts are expecting the company to report revenues of $609 million.

• Earnings per share are expected to come in at $1.13.

What to Really Watch• LED lights have become a

bigger and bigger part of Acuity’s business. Pay attention to the growth rates this area of the company shows. Recently, they have accounted for more than 20% of all revenue.

• Management has already indicated that this could be a choppy year. Therefore, guidance will be just as important as results to help get idea for where the company is headed.

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SYNNEX Corp. (NYSE: SNX)

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Why Are Investors So Negative?1. Shares are up over 70% in the past year.

2. While the stock trades for just 16 times earnings, it has been free-cash-flow negative over the past year.

3. Though results were positive last quarter, some wonder whether the company’s acquisition of IBM’s customer-care unit was worth it.

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Here’s What to WatchWall Street Expectations• Currently, 7% of SYNNEX

shares are sold short.

• Analysts are predicting revenue of $3.2 billion when the company reports.

• Earnings per share are expected to register at $1.37.

What to Really Watch• The company has

recently been buoyed by management’s belief that strong demand still exists for IT in the U.S. and Japan. Listen in to the conference call see if that’s still the case.

• Check to see if the IBM deal is continuing to add value for the business-services division of the company.

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The Greenbrier Companies (NYSE: GBX)

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Why Are Investors So Negative?1. Over the past year, Greenbrier’s shares have

zoomed up 155%. Some think that ride will soon come to an end.

2. Greenbrier’s business relies heavily on macro-economic conditions in the energy industry. While there’s been a huge resurgence in North American energy, the infrastructure build-out associated with it could slow considerably if commodity prices sink.

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Here’s What to WatchWall Street Expectations• Currently, 16% of

Greenbrier’s shares are sold short.

• Revenue is expected to come in at $571 million.

• Analysts are predicting a profit of $0.74 per share.

What to Really Watch• The company’s backlog is

a huge sign for where the company is headed. Last quarter, it stood at 15,200 units.

• Greenbrier recently announced impressive sales for its “Tank Car of the Future” to transport oil and natural gas. Listen to the conference call for further details on the car.

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