5 Stocks To Watch Before The Market Opens Tomorrow (October 26, 2016)

Coca-Cola (KO): Financial performance has greatly slowed down in recent quarters owing to a shift in consumer preference away from unhealthy sugary drinks.  The downturn in carbonated soft drink sales have pushed KO toward more water based beverages and juices. Revenue growth has been strong in these segments as additional volume meets changing demand. Meanwhile efforts to control costs and strategic marketing campaigns should continue to support performance this quarter. Major concerns still remain, including unfavorable currency, lower volumes of carbonated soft drinks and heightening uncertainty in Europe following Brexit. Analysts at Estimize have edged down estimates in recent months to reflect these significant near term headwinds.

Boeing (BA): This is shaping up to be a difficult year for Boeing which is expected to post declines all of its products. Analysts at Estimize are projecting that sales will drop by 9% on a 4% increase in earnings. The company recently announced a 5.5% decline in its commercial delivers during the quarter on lagging demand for 737, 777 and 787 Dreamliners. Boeing still enjoys steady flow of cash from key commercial and defense contracts including ones with Saudi Arabian Airlines and the U.S. Air Force. A late quarter burst of orders isn’t expected to hit the books this quarter, but could play a role in Q4 guidance. Meanwhile a new license to sell planes in Iran will provide additional support to a struggling top line.

Southwest Airlines (LUV): Southwest is the last of the well known budget airlines to report this season. They were dealt positive news this morning following Jetblue and Spirit’s massive earnings beats. In all likelihood, this points to a strong report from the carrier tomorrow morning. Southwest has been successful at growing the top and bottom line primarily due to low fuel costs and low fares. Key PRASM metrics have been unable to keep pace and remain a near term threat. Unit revenue recorded a 3.5% decline in the second quarter with management guiding for similar declines in the quarter to be reported.