Wall Street This Week: From the REIT Way to the Fast Way
Monday -- REIT 'em and Reap
Real estate investment trusts -- or REITs -- have become popular with investors hungry for high yields. In this climate where rates on fixed income vehicles are meager, a REIT offers an opportunity for meatier payouts for those willing to take on the risks.
Investors Real Estate Trust (IRET) reports on Monday afternoon.The REIT owns and operates income-producing multi-family residential and commercial properties in the upper Midwest. Investors Real Estate Trust currently yields 5.8 percent, and it has paid quarterly distributions for 173 consecutive quarters.
Tuesday -- Taking Care of Business
Paychex (PAYX) is one of the better proxies for corporate America. The provider of payroll and other human resource solutions for small- and medium-sized businesses has 570,000 payroll clients. In other words, if companies are hiring or firing, you will see it in Paychex's financials.
Analysts expect to see modest growth when Paychex reports on Tuesday afternoon. They also expect to see revenue and earnings per share climbing by a little more than 5 percent. That may not seem like a lot, but at least it's moving in the right direction. It's also a good sign that Paychex has beaten Wall Street's profit targets for three consecutive quarters heading into Tuesday's report.
Wednesday -- Hittin' the Railroad
Greenbrier (GBX) reports on Wednesday morning. It's a leading supplier of transportation equipment and services to the railroad industry. It's easy to be cautious about Greenbrier, and not just because of the cyclical nature of rail or the broader migration to new ways to move goods around. Paychex may have beaten analyst guesstimates three times over the past year, but Greenbrier has missed Wall Street profit forecasts in three of the past four quarters.
Thursday -- Chasing Down the Checkered Flag
If it isn't obvious just yet, this is going to be a slow week for earnings. The first week of any new quarter is typically dry when it comes to fresh financials, and this week is already going to be kept in check with the Independence Day holiday.
It would take a company with a heart of steel to try and post quarterly results on the eve of an extended market holiday, but that's just what International Speedway (ISCA) is doing. To be fair, the motor-sports promoter lives its life surrounded by speed metal (a dozen tracks, plus radio's Motor Racing Network). It wouldn't be a shock if its heart followed suit.
Wall Street sees a profit of 49 cents a share out of International Speedway. It had generated net income of 51 cents a share a year earlier during the same period. That's not the kind of growth that fans would like to see.
Friday -- Red, White, and Blue
The market is closed in observance of the Independence Day holiday. Investors should enjoy the actual fireworks that will likely cap off most stateside celebrations. They are unlikely to get those same kind of fireworks out of the market during what promises to be rather sleepy week on the news front.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends International Speedway and Paychex.