The Week in Preview: FedEx, Best Buy, Oracle and Lots of Economic Data

Last week, the Fed's Beige Book report confirmed that the economy continues to grow, but at a slower pace than in previous periods. This week will bring plenty of economic data to either support or contrast with the Fed's findings. Monday: Federal government budget balance for August Tuesday: Business inventory numbers from July, TIPP Economic Optimism Index for September, retail sales data from August Wednesday: Industrial production in August, Empire State Manufacturing Survey for September, Import Price Index for August Thursday: Producer Price Index for August, Philly Fed Survey for September, the Current Account Balance in the second quarter, jobless claims for last week Friday: preliminary University of Michigan Consumer Sentiment Index, Consumer Price Index for August, real earnings data for August FedEx FDX is seen by many as a bellwether of the state of the economy, so its fiscal first quarter report this week will offer another data point about the most recent quarter. Analysts surveyed by Thomson Reuters anticipate that Memphis-based FedEx will report that its earnings doubled from a year ago to $1.19 per share, which is in line with previously raised guidance. During the three months ended in August, FedEx and declared a quarterly dividend, and revenue for that period is expected to total $9.4 billion, up 17.4% year over year. And the consensus forecast calls for sequential and year-over-year growth of both EPS and revenue in the second quarter. FedEx has met or beat earnings expectations in the past five quarters. FedEx has a long-term EPS growth forecast of 12.3% and a forward price-earnings (PE) ratio of 16.2, which is less than the industry average and the trailing PE ratio of 22.4. The First Call recommendation has been to buy FDX for more than 90 days. The mean price target is currently $98.89. The stock hit a 52-week low of $69.78 in July but ended last week at $84.16. Another prominent quarterly report this week comes from Best Buy BBY. During the three months that ended in August, Best Buy named a chief design officer and increased its quarterly dividend. The nation's largest consumer electronics retailer is expected to post EPS of 46 cents, which is a 19.6% increase from a year ago. Second-quarter revenue is expected to have grown 5.7% to $11.7 billion. So far, analysts predict sequential and year-over-year growth of both EPS and revenue in the third quarter. Earnings results have topped consensus estimates in two of the past three quarters, but missed by 13 cents per share in the first quarter. See the rest here.