Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. Tech stocks will dominate earnings news as Apple, Facebook, Amazon, Microsoft and Alphabet all report. Tesla is also due along with giants in aerospace, energy, pharmaceuticals and payments. Meanwhile, the Federal Reserve holds another policy meeting.
Stocks To Watch
Pool (POOL) found support at the 50-day line and is in buy range from its 449.54 buy point. Icici Bank (IBN) is near an 18.27 cup-with-handle buy point, though 18.14 is an entry from a handle within that handle. Discover Financial Services (DFS) has a 125.48 flat-base buy point but 127.75 is an alternate entry. CarMax (KMX) is in a cup-with-handle base with a 137.63 buy point. Morgan Stanley (MS) is just above a flat-base buy point of 94.37.
Apple Earnings Seen Rising 55%
The consumer electronics giant will report fiscal Q3 results late Tuesday. Analysts expect EPS to leap 55% to $1.01 as sales grow 23% to $73.3 billion. Three months ago, Apple (AAPL) warned of a more dramatic seasonal sales decline from the March quarter to the June quarter than in prior years. It said the later-than-usual iPhone launch last year elevated March-quarter handset sales. It also said semiconductor shortages would impact production of Mac computers and iPad tablets in the period.
Microsoft Hoping For Cloud Boost
The software leader will release fiscal Q4 results late Tuesday. Wall Street is predicting a 31% EPS gain to $1.91 as sales climb 16% to $44.1 billion. Microsoft‘s (MSFT) cloud computing businesses, including Azure and Office 365, remain a key focus area for investors. The report comes after the Pentagon canceled its disputed JEDI cloud computing contract with Microsoft with plans to hold a new competition.
Facebook Near High Ahead Of Earnings
The social media leader reports late Thursday. The consensus looks for EPS to surge 69% to $3.02 as revenue climbs 48% to $28.7 billion. Facebook (FB) stock is trading near record highs and is up 30% this year. The earnings report follows strong results from Snap (SNAP) and Twitter (TWTR). Meanwhile, U.S. regulators and lawmakers edge closer to imposing restrictions on social-media content and misinformation.
Amazon Eyes Prime Day Boost
The e-commerce king reports after the close Thursday. The consensus looks for EPS to grow 19% to $12.24 with revenue up 30% to $115.3 billion. The results will include sales from Prime Day, which took place in June after Amazon (AMZN) postponed it to October last year. Shopify (SHOP) reports early Wednesday, and EPS is seen down 7.5% at 97 cents while revenue leaps 45% to $1.04 billion.
Alphabet Earnings Seen Soaring
The Google parent reports late Tuesday. Analysts estimate EPS will jump 90% to $19.21 with gross revenue jumping 46% to $56.02 billion. Analysts project YouTube advertising revenue of $6.3 billion and cloud computing revenue of $4.4 billion. Increased antitrust regulatory scrutiny will likely be a topic on Alphabet‘s (GOOGL) earnings call.
The central bank meeting wraps up on Wednesday and could provide some dovish hints, despite elevated inflation readings, after the Fed’s June meeting provided a hawkish surprise with two rate hikes penciled in for 2023 and a serious discussion of when to start tapering asset purchases. A key question is what the Fed will make of the surge in Covid cases and hospitalizations, mostly among the unvaccinated, and whether that could affect the plan to gradually wind down asset purchases.
Tesla To Report Amid Uncertainties
The EV maker reports late Monday, and analysts expect EPS to more than double to 90 cents as sales surge 89% to $11.39 billion. Tesla (TSLA) previously reported the Q2 deliveries shot up 122% to 201,250. Industry watchers are looking to see if CEO Elon Musk will provide updates on when Semi and Cybertruck production will begin. Tesla has pushed back production of the vehicles several times, blaming battery shortages. Look for Tesla to also provide details on the opening of its factories in Austin and Berlin as well as pricing for its autonomous driving software, which is still in a testing phase.
Payment Firms To Report
Visa (V) will report fiscal Q3 earnings late Tuesday. Analysts see EPS increasing 25% to $1.33 as sales grow 21% to $5.84 billion. PayPal (PYPL) reports late Wednesday. Analysts estimate 6% EPS growth to $1.13 with revenue rising 19% to $6.27 billion. Mastercard (MA) will report early Thursday. EPS is expected to rise 26% to $1.72, while revenue is seen increasing 31% to $4.36 billion.
Big Pharma On Deck
Early Wednesday, analysts expect Pfizer (PFE) to report a 24% EPS gain to 97 cents on $18.71 billion in sales, up 59%. Early Thursday, analysts expect Merck (MRK) to report EPS of $1.40 a share, up nearly 7%, with sales up 2% to $11.08 billion. Also due are Bristol Myers Squibb (BMY), AstraZeneca (AZN) and AbbVie (ABBV) on Wednesday, Thursday and Friday, respectively.
Exxon, Chevron Due Amid Oil Rebound
The oil majors will report early Friday. Analysts see Exxon Mobil (XOM) swinging to profit of $1 per share from a loss of 70 cents per share in the year-ago quarter. Revenue is seen climbing 98% to $64.54 billion. Chevron (CVX) is also expected to swing to a profit of $1.56 per share from a loss of $1.59 in the year-ago quarter. Revenue is seen soaring 165% to $36 billion.
Boeing To Redo Space Test Flight
The Boeing Starliner, which NASA hopes will eventually ferry astronauts to orbit, will try again to reach the International Space Station with an uncrewed flight next Friday. In December 2019, the capsule failed to reach the proper orbit for docking with the ISS due to a software error. Rival SpaceX has already successfully launched three crews to the ISS on its Crew Dragon capsule.
Big Week For Aerospace, Defense
Lockheed Martin (LMT) reports early Monday. Analysts see the F-35 maker’s EPS climbing 13% to $6.53 with revenue up 4% to $16.94 billion. Boeing (BA) will report Q2 results before the market opens Wednesday. Analysts expect per-share losses to narrow to 77 cents from $4.79 in the year-ago quarter. Revenue is seen rising 43% to $16.82 billion. General Dynamics (GD) will also report Wednesday. Northrop Grumman (NOC) will report early Thursday.
Industrial Conglomerates To Report
On Tuesday, General Electric (GE) is likely to swing to a profit of 3 cents a share from a year-ago loss of 15 cents a share as revenue grows 2% to $18.08 billion. Wall Street expects Q2 free cash flow (FCF) of $877 million, after GE disclosed a $248 million cash burn a year ago. Also Tuesday, Raytheon Technologies (RTX) should see a 132% EPS increase to 93 cents, with sales up 11% to $15.82 billion. Both industrial giants are lapping the worst of last year’s pandemic hit, which hit their jet-engine businesses hard.
- Atlassian (TEAM) reports fiscal Q4 earnings late Thursday. Analysts expect EPS to fall 28% to 18 cents with revenue growing 22% to $524.1 million.
- QuantumScape (QS) reports late Tuesday and should post a loss of 7 cents per share with no revenue as the startup continues to develop solid-state EV batteries.
- UPS (UPS) reports early Tuesday and is likely to post a 32% EPS increase to $2.77, with revenue seen growing 13% to $23.19 billion.
- Generac (GNRC) reports early Wednesday. Wall Street expects EPS to jump 65% to $2.31 as revenue climbs 59% to $867 million.
- Align Technology (ALGN) reports late Wednesday and is expected to record a profit of $2.52 per share, reversing from a year-ago loss of 28 cents a share, as sales rocket 169% to $947 million.
- Ford (F) reports late Wednesday and is expected to narrow per-share losses to 3 cents from 35 cents a year ago as revenue grows 18% to $22.83 billion, as the auto giant laps the worst of last year’s pandemic impact.
- Deckers (DECK) reports fiscal Q1 earnings late Thursday. Wall Street expects per-share losses to narrow to 9 cents from 28 cents a year ago as revenue jumps 44% to $407 million.
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