- (1:30) – Breaking Down The Upcoming Earnings Season: What Should Investors Expect?
- (7:30) – Understanding What Was Going On During Q3 Earnings
- (13:35) – What Is Going On Within The Tech Industry Right Now?
- (19:10) – Earnings and Revenue Growth For The Magnificent 7
- (27:40) – Where Should Investor Be Looking To Invest: Creating A Strong Watchlist
- (34:20) – Episode Roundup: NVDA, GOOGL, META. AMZN, JPM, STRL
- Podcast@Zacks.com
Welcome to Episode #376 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of Research, Sheraz Mian, to discuss what Zacks earnings data is telling us about the upcoming earnings season. Be sure to watch the video format of this podcast.
Earnings Data to Keep an Eye On
Energy earnings are expected to be down 39.7% in the third quarter but if you strip it out, the other 15 sectors are expected to see earnings growth of 3.1% on 3.5% higher revenue.
Additionally, estimates have increased for 6 out of the 16 Zacks sectors since the quarter began. These were Tech, Construction, Autos, Medical, Retail and Industrials.
Earnings estimates for Q4 and 2024 are also improving.
You can read all about the latest earnings data in Sheraz’s latest article: Q3 Earnings Season Kicks Off.
5 Stocks to Watch this Earnings Season
1. NVIDIA Corp. (NVDA)
NVIDIA reports late in the earnings season so it’s going to be a few months before we hear from it again. But the analysts have been revising their estimates over the last 2 months. 15 have been revised higher for this fiscal year during that time, with none revised lower.
NVIDIA is expected to see earnings growth of 219% this fiscal year. NVIDIA’s earnings trend is bullish.
NVIDIA is a Zacks Rank #1 (Strong Buy).
2. Meta Platforms (META)
Meta Platforms also has seen its earnings estimates move higher for 2023 in the last 90 days. The Zacks Consensus is now looking for $13.24 up from $11.90 just 3 months ago.
Meta Platforms made $9.83 per share last year so this would be earnings growth of 35.7%. It’s attractively priced with a forward P/E of just 22.9.
Meta Platforms reports earnings on Oct 25, after the market close.
3. Amazon.com, Inc. (AMZN)
Amazon has staged a big earnings turnaround in 2023. Earnings are expected to be up 214% to $2.23 versus just $0.71 last year. The full year consensus has also been on the move higher, jumping to $2.23 from $1.56 in the last 90 days.
Analysts are not bearish on Amazon. No estimates have been cut in the last 60 days for the full year.
Amazon shares still aren’t cheap. It trades with a forward P/E of 56.9.
Amazon is a Zacks Rank #1 (Strong Buy).
4. JPMorgan Chase (JPM)
JPMorgan Chase shares are down 2.7% over the last month. The stock is cheap, at 8.9x. There is a gloom around the banks heading into earnings season, but should there be?
JPMorgan Chase is expected to see earnings grow 33% in 2023. The Zacks Consensus has jumped to $16.05 from $14.37 in the last 90 days. It made just $12.09 in 2022.
Should JPMorgan Chase be on your short list?
5. Sterling Infrastructure (STRL)
Sterling Infrastructure is a company to watch this earnings season. It has business in some of the hottest areas of infrastructure, including data centers. Analysts are bullish about Sterling. Over the last 60 days, the full year Zacks Consensus has jumped to $4.09 from $3.52. That’s earnings growth of 29.4% from 2022.
Sterling Infrastructure is still attractively valued, with a forward P/E of 17.9.
Sterling Infrastructure is a Zacks Rank #1 (Strong Buy). Tracey owns it in the Zacks Value Investor portfolio.
What Else do you Need to Know About the Third Quarter Earnings Season?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey own shares of AMZN in her personal portfolio.]
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.