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The Week Ahead: Heavy Hitters Cintas, FedEx, and Nike to Report

Packaged food companies to announce earnings, and data on personal income and spending for November will be released.

Several prominent companies will be releasing earnings this week, including wide-moat Accenture ACN and Cintas CTAS.

Accenture recently launched the Accenture Cloud Native Core Solution to help companies create applications for the cloud and increase their business agility. Our analysts believe Accenture will continue to grow at a healthy and gradual pace.

Cintas retains its wide moat rating from its central uniform rental and facility services operations, which benefit from significant scale-based cost advantages. While Cintas has 35% of the market share, its performance is cyclical as its operations are tied to U.S. employment trends.

FedEx FDX will also be releasing its earnings Tuesday. Its fair value estimate was recently reduced to $170 from $190 per share based on near-term expectations for slower express growth and weaker margins in parcel units, a slowing EU industrial economy, sustained operational challenges of the recently acquired TNT Express, and the need to replace lost volume.

Wide-moat Nike NKE will report Monday. CEO Mark Parker is slated to be replaced by board member John Donahoe in mid-January. This transition is not expected to affect the company’s stewardship rating, and its fair value estimate rests at $102 per share.

In the packaged foods space, General Mills GIS and ConAgra Brands CAG will report Wednesday and Thursday, respectively.

Economic data for industrial production for November is slated for Tuesday. Data on personal income and personal spending for November will be released Friday. The week also brings reports on EIA Crude Oil and Natural Gas Inventories to be released on Wednesday and Thursday, respectively.

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