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5 Stocks Wall Street Is Watching This Week: PFE TSLA SQ FIT BRK.B

By U.S. News & World Report

Investors walking around with a strut in their step to start this week get a free pass.

After all, tech absolutely exploded for them thanks to a slew of Street-pleasing earnings reports from the sector’s bluest of blue chips. And it wasn’t just Amazon.com (ticker: AMZN) and Facebook (FB), which have spoiled investors with fantastic beats of late. Even Apple (AAPL) got into the game, surging 6 percent despite all its woes.

But don’t worry, mopey Mollies. The smiles could very well turn down into frowns thanks to a number of big-name earnings reports on the schedule this week.

[See: The 10 Best Ways to Buy Tech Stocks.]

Here’s a look at five stocks to watch, including a couple potential land mines.

Pfizer (PFE). While Pfizer’s roots go back to the same year gold prospectors were rushing San Francisco, you wouldn’t know it by this year’s spry performance — PFE shares are up 15 percent versus just 4 percent for the broader Health Care Select Sector SPDR exchange-traded fund (XLV).

The fountain of youth extends to expectations for the company’s second-quarter earnings, due out early Tuesday. Wall Street analysts see Pfizer earning 62 cents per share on revenues of $13.01 billion — that’s year-over-year growth of roughly 11 percent and 10 percent, respectively.

You can thank the 2015 acquisition of injectable drug outfit Hospira for that. PFE paid $17 billion last year to bring a stable of some 200 generic drugs, as well as some biosimilars in a deal that was expected to be accretive to earnings this year. So far, so good, as Pfizer’s first-quarter earnings leapt 31 percent in large part because of Hospira’s new contributions. Hospira should do the same this quarter.

What’s more in the air is whether Pfizer can continue to gain traction on its Prevnar immunizations, as well as anti-epileptic drug Lyrica, which brought in $1.2 billion in revenues on its own last quarter. Pfizer also needs now-off-patent drugs like Lipitor and Viagra to not bleed onto the rug.

Tesla Motors (TSLA). Tesla’s second-quarter earnings report, out Wednesday after the bell, is a pivotal moment in a year chock full of pivotal moments.

Just look at the past few months: Tesla dealt with the first fatal crash involving one of its vehicles in self-driving mode. Not only is Tesla’s Autopilot feature being investigated in connection with the death, but the SEC is investigating just how “material” the seemingly late disclosure of the crash was in the context of a TSLA share sale held just a couple weeks afterward. Elon Musk boldly hiked Tesla’s 500,000-annual-units target to 2018. Tesla announced a controversial move to merge with another Musk brain child, struggling solar installation firm SolarCity Corp. (SCTY) — that $2.6 billion deal is expected to close in the fourth quarter. Just a couple of weeks ago, Musk unveiled his company’s second “Master Plan.” And Tesla missed its quarterly delivery goals.

[See: Artificial Intelligence Stocks: 10 Companies Using AI Extensively.]

With all that as background, and knowing expectations for deep losses are par for the course, Tesla’s earnings report is a relatively simple affair. Watch revenues. Wall Street expects TSLA revenue growth of 36 percent to $1.63 billion, which would be its strongest figure in nearly two years. The sales figure will make or break this report, and determine the path that gut-punishingly volatile Tesla shares will take next.

Square (SQ). Also reporting in Wednesday’s after-hours period is electronic payments and point-of-sale device company Square, which has suffered a couple of implosions that have shares off nearly 25 percent for the year.

The big crack came in early May, where shares lost all the ground they’d recovered after February’s broad-market collapse, thanks to a disappointing first quarter. While revenues grew a robust 51 percent — exceeding estimates — on gross payment volume that improved 45 percent, Square logged a net loss of $96.7 million that was nearly double the year-ago period. Particularly troubling was that this came despite a $2 million gross profit from its deal with Starbucks Corp. (SBUX) — an arrangement that overall has been so awful that Square opted to end it as of the third quarter, and renegotiated rates until the relationship concludes.

Watch the bottom line again this quarter. Square is expected to lose 11 cents per share — 2 more cents than what Wall Street expected SQ to lose before the disastrous first-quarter report. If the deficits continue to pile higher, that could mean another victory for the shorts, who hold a simply breathtaking 68 percent of the float.

Fitbit (FIT). The market really hates 2015 initial public offerings, if Square and Fitbit are any indication. The latter also is being shorted into the ground, with some 35 percent of its float sold short — and that’s after a 50 percent hemorrhaging in FIT shares year-to-date.

Growth isn’t the problem here. Expectations are.

FIT sales in the first quarter grew 50 percent from the previous year to beat estimates, and they are expected to improve by 45 percent in the second quarter. Fitbit also beat on earnings and raised guidance on both the top and bottom lines for the full year when it reported first-quarter earnings. However, based on the revenue beat it posted, the estimate for $2.5 billion to $2.6 billion in revenues would actually represent lower guidance for the remaining nine months of the year. And keep in mind that the first-quarter beat came after Fitbit lowered its first-quarter outlook when it reported fourth-quarter 2015 earnings.

Fitbit already is being dogged by legal hassles with Jawbone and questions about how accurately it measures users’ health — you know, that thing Fitbit is designed to do. It simply can’t afford to miss expectations when it reports late Tuesday … and in fact, it can’t afford to not blow them away.

Berkshire Hathaway (BRK.A, BRK.B). Berkshire Hathaway will irk every financial journalist this Friday when it reports earnings after the bell, delaying the weekend for many.

Berkshire is sitting on a nice 10 percent gain so far in 2016, though much of that was logged early on, and shares have essentially plateaued since early April. Investors shouldn’t expect much of a positive catalyst out of earnings, either.

Berkshire’s biggest businesses include insurance, as well as railroads/utilities/energy, and both should continue to be under pressure — the former from natural disasters and continued low interest rates, and the latter from collapsed coal prices. None of those drivers have changed.

[See: Warren Buffett’s 10 Biggest Deals.]

Meanwhile, Berkshire is expected to post earnings of $1.86 per share — up 18 percent year-over-year — but that estimate has trickled down by a penny over the past month.

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5 Stocks Wall Street Is Watching This Week: PFE TSLA SQ FIT BRK.B originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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