Before U.S. markets opened on Monday, JinkoSolar reported earnings per share (EPS) more than double the consensus estimate and revenue that was more than 10% better than the consensus forecast. Revenue was up almost 63% year over year. Gross margins were higher year over year but slipped sequentially. A new stock offering by the company’s principal subsidiary cooled investors’ interest, however. Shares traded down 3.4% shortly after Monday’s opening bell.

Li-Cycle reported revenue well below expectations and a wider net loss than expected. The stock traded down 8.2% on Monday morning.

After markets close Monday or before they open on Tuesday, Canoo, Home Depot, Sea Limited and Tencent Music are on deck to report quarterly results.

Later on Tuesday and early on Wednesday, these five firms will be reporting earnings.

JD.com

Beijing-based JD.com Inc. (NASDAQ: JD) is China’s second-largest e-commerce company. Its shares have dropped by about 36% over the past 12 months, including a decline of 35% so far in 2023. Its earnings report is due first thing Wednesday morning.

Since the government eased restrictions on tech firms like JD.com, Tencent Holdings and Bilibili, analysts have raised their forecasts for earnings and expect the firms to report substantially better results than in the past several quarters. Investors are wary, however, selling off some of their holdings and taking the share price down by more than 5% last Friday.

Of 40 analysts covering the stock, 35 have a Buy or Strong Buy rating. At a recent share price of around $36.50, the stock’s implied upside based on a median price target of $58.75 is 61%. At the high price target of $96.42, the upside potential is 164.2%.

Analysts expect JD.com to report second-quarter revenue of $38.77 billion, which would be up 9.6% sequentially but down 2.9% year over year. Adjusted EPS are expected to come in at $0.69, flat sequentially and up 13.1% year over year. For the full 2023 fiscal year, EPS are forecast at $2.98, up 16.1%, on sales of $151.69 billion, flat year over year.

JD.com stock trades at 12.2 times expected 2023 EPS, 10.4 times estimated 2024 earnings of $3.52, and 8.9 times estimated 2025 earnings of $4.12 per share. Its 52-week trading range is $31.57 to $67.87, and the company pays a dividend of $0.62 (yield of 1.61%). Total shareholder return over the past year is negative 35.04%.

Nu Holdings

Brazil-based Nu Holdings Ltd. (NYSE: NU) is a fast-growing fintech player in Brazil and other Latin American countries. The stock has added about 90% to its share price over the past 12 months, virtually all of it in 2023. Warren Buffett’s Berkshire Hathaway owned about 107 million shares in the company as of March. Cathie Wood’s ARK Invest Fintech Innovation ETF owns about 325 million shares.
Of 17 analysts covering the stock, 10 have a Buy or Strong Buy rating, and five more have Hold ratings. At a share price of around $7.80, the upside potential based on a median price target of $8.40 is 7.7%. At the high price target of $11.00, the upside potential is 41%.

Second-quarter revenue is forecast at $1.78 billion, up 9.7% sequentially and by 53.4% compared to the year-ago quarter. Analysts expect Nu to post adjusted EPS of $0.04, equal to the prior quarter’s EPS and better than the year-ago quarter’s break-even finish. For the full year, adjusted EPS are forecast at $0.17 per share, up 293% on sales of $7.41 billion, up 54.7%.

The stock trades at 45.2 times expected 2023 earnings, 27.2 times estimated 2024 earnings of $0.29 per share and 15.6 times estimated 2025 earnings of $0.50 per share. Its 52-week trading range is $3.39 to $8.29. Nu does not pay a dividend, and total shareholder return for the past year was 90.20%.

Target

Target Corp. (NYSE: TGT) posted its 52-week high nearly a year ago and plummeted to a 52-week low in June. The stock has dropped by nearly 23% over the past 12 months, including a 12% decline in 2023. Rival Walmart has added about 24% over the past year, including an increase of nearly 14% to date this year.

Both retailers appear to be treading water, however, compared to Amazon. The e-commerce giant’s shares have added nearly 65% so far this year. Target has been focused on cost-cutting and attracting more traffic. This approach, even if it works, will take the company only so far. Target reports results Wednesday morning.

Of 36 analysts covering the company, 17 have a Buy or Strong Buy rating, and 19 rate the shares a5 Hold. At a price of around $131.00 a share, the upside potential based on a median price target of $160.50 is about 22.5%. At the high price target of $220.00, the upside potential is 67.9%.

The consensus second-quarter 2024 revenue estimate is $25.27 billion, down 0.2% sequentially and by 4.7% year over year. Adjusted EPS are forecast at $1.43, down 30.3% sequentially but 266.7% higher year over year. For the full year ending in January, analysts expect Target to report EPS of $7.84, up 30.2%, on sales of $109.27 billion, up 0.14%.

Target stock trades at 16.7 times expected 2024 EPS, 13.6 times estimated 2025 earnings of $9.50 and 12.0 times estimated 2026 earnings of $10.94 per share. The 52-week trading range is $125.08 to $183.89. The company pays an annual dividend of $4.34 (yield of 3.31%). Total shareholder return for the past year was negative 20.73%.

TJX Companies

TJX Companies Inc. (NYSE: TJX) operates around 3,000 retail stores worldwide under well-known names like T.J. Maxx, Marshall’s and HomeGoods. Over the past 12 months, the share price has risen by around 33.3%. A forecast slowdown in retail sales finally appears to have shown up, and some analysts are expecting consumer-facing businesses like clothing stores and restaurants to report slower sales. Off-price retailers like TJX could outperform if consumers get more cautious. The company reports results early on Wednesday.
Of 25 analysts covering TJX, 20 have a Buy or Strong Buy rating and the other five rate the shares at Hold. At a price of around $86.00 a share, the upside potential based on a median price target of $90.00 is 4.7%. At the high price target of $110.00, the upside potential is 27.9%.

Second-quarter revenue is forecast to come in at $12.42 billion, up 5.4% sequentially and by 4.9% year over year. Adjusted EPS are pegged at $0.76, flat sequentially and up 10.1% year over year. For the 2024 fiscal year ending in January, analysts expect EPS of $3.58, up 15.2%, on sales of $53.16 billion, up 6.5%.

TJX’s stock trades at 24.0 times expected 2024 EPS, 21.6 times estimated 2025 earnings of $3.98 and 19.4 times estimated 2026 earnings of $4.44 per share. The 52-week range is $59.68 to $87.81. TJX pays an annual dividend of $1.33 (yield of 1.55%). Total shareholder return for the past 12 months was 39.49%.

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Zim Shipping

It almost certainly had to happen sooner or later. Zim Integrated Shipping Inc. (NYSE: ZIM) reported a miss on both the top and bottom lines when it released first-quarter results in May. Shipping volume declined by 10.5% year over year, and the average rate for a 20-foot-equivalent unit (TEU) fell by 62.6%. The company’s net loss was $58 million, and Zim did not pay a June dividend.

The company distributes 30% to 50% of its annual net income to shareholders in quarterly payments based on a rate of 30% of net income in each of the year’s first three quarters. No first-quarter net income, no dividend.

The situation may not improve any time soon. Container shipping rates have fallen by 40% from a peak set in January 2022, and a slowing global economy is unlikely to help a turnaround. For the record, Zim’s trailing 12-month dividend yield was 98.88%, and its payout ratio was above 115%. Zim reports results before markets open on Wednesday morning.

Of seven brokerages covering the company, none has a Buy rating, four have rate it at Hold and the others have a Sell or Strong Sell rating. At a share price of around $14.00, the stock trades above its median price target of $13.00. At the high target of $17.70, the upside potential is 26.4%.

For the company’s second quarter of fiscal 2023, the consensus revenue estimate is $1.35 billion, down 1.9% sequentially and 60.6% lower year over year. Analysts expect an adjusted loss per share of $0.92, compared to a loss per share of $0.50 in the previous quarter and EPS of $11.07 in the year-ago quarter. For the full fiscal year, current estimates call for a net loss of $3.15, compared to 2022 EPS of $38.41. Full-year revenue is forecast at $5.49 billion, down by 56.3%.

Zim stock trades at an enterprise value to sales multiple of 0.6 for each of the next three years based on annual revenue of $5.49 billion, $5.51 billion and $6.02 billion in 2023, 2024 and 2025, respectively. The stock’s 52-week range is $11.78 to $52.42. The company has suspended its dividend. Total shareholder return for the past year was negative 53.72%.

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