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  • The Investing Week Ahead: 7/5/2022

The Investing Week Ahead: 7/5/2022

The F-150 Lightning has a big report card coming up, we're waiting for the unemployment rate to rise, and learning about the creator of Apple Stores going bankrupt.

05 Jul

Wishing each of you a (delayed) Happy 4th of July.

It’s summer and easy to lose track of things. Below are recent posts that you should check out:

In case you missed it, Tesla reported their vehicles deliveries for Q2. Below is an awesome Tweet sharing more details.

The Investing Week Ahead - Too Long, Didn’t Read:

⚡ A calm week of earnings brings us Helen of Troy, Levi’s, and WD-40.

⚡ Ford hopes the F-150 Lightning soars & Spirit Airlines votes on sale to Frontier.

⚡ Slowing economic growth shifts all eyes to the upcoming jobs report.

Key Earnings Announcements:

Just a few names to keep an eye on this week.

Historically, the week of July 4th is always one of the least active weeks for stock market activity.

We’ll report back on the performance of Helen of Troy (HELE), Levi Strauss (LEVI), and WD40 (WDFC). Each company is worth between $3-6 billion.

To bring you up to speed, Levi Strauss shared with us during their Q1 earnings call details surrounding their unique ability to have completely circumvented supply chain constraints. The company is sourcing their products from across 24 countries with no single country representing more than 20% of their inventory. The company also locked in 70% of their cotton costs through the rest of 2022 — a smart move considering the volatile price.

We also learned about the companies low dependency on China — representing less than 3% of their annual revenue. This will show to be very important as we all know what the scene over there was been looking like lately.

Finally, I’ve remained on the sidelines with LEVI specifically because the company falls into the “consumer discretionary” sector — which historically performs poorly during macroeconomic downturns. We’re in a recession — are people still willing to buy high-priced jeans?

Investor Events:

Economic events take the cake over investor events during the sleepy market month of July… but let’s talk trucks.

Tuesday (7/5): Ford (F) reports monthly US sales

Wednesday (7/6): IPO lockup expirations end for Amylyx Pharmaceuticals (AMLX)

Thursday (7/7): Advent Technologies (ADN) Investor Day

Friday (7/8): Spirit Airlines (SAVE) shareholder vote on sale to Frontier (ULCC)

What We’re Watching:

Major Economic Updates:

Watching the US jobs report, as recessionary periods are always accompanied by significant loss of jobs.

Tuesday (7/5): Factory orders

Wednesday (7/6): FOMC minutes, ISM services index, job openings and quits

Thursday (7/7): Updated jobless claims, foreign trade balance

Friday (7/8): US jobs report, consumer credit

What We’re Watching:

Events-Driven Winners:

What specific events are moving stocks the most

Our friends at LevelFields scrub through thousands of data points each week to determine how events impact stock prices.

Ron Johnson used to be an exec at both Apple and J.C. Penney. Now he is the founder of retail startup Enjoy Technology — which was jut forced to file for Chapter 11 bankruptcy protection.

Johnson is best known for creating Apple Stores and reimagining what Apple’s retail presence would look like. The sad thing about market downturns and recessionary periods is that even folks with strong experiences and long lists of successes can get absolutely wrecked. We foresee at least a handful of more bankruptcy filings over the coming year or so. Wouldn’t have even known about this specific one without LevelFields!

If you’re starting your investing journey or want to change to a cleaner, social-focused investing platform, consider visiting Public.com.

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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