Top 3 stocks to watch this earnings season

Top 3 stocks to watch this earnings season

Just like the first half of the year, the second half started just as difficult. However, there are still top stocks to watch. As inflation remains stubbornly high, consumers are struggling. Narrowly 63% of Americans now they live paycheck to paycheck. Therefore, clear recession fears are brewing. This is mainly based on the fear that the Federal Reserve is getting too aggressive with interest rate hikes. That said, there are expectations that the Fed may be backing off its hawkish stance, to avoid pushing the economy over the edge.

The world is still dealing with the Russia-Ukraine war. the International Monetary Fund warns of a global recession. Porcelain imposed lockdowns to fight the coronavirus. In short, the world is facing a slow-motion train wreck that could get worse before it gets better.

Earnings season is also underway. Although the main actions to take into account, such as Coke (NYSE:KO), Visa (NYSE:v), chipotle (NYSE:CMG), General Energy (NYSE:GE), general motors (NYSE:GM) and dozens more earnings, some big names like Microsoft (NASDAQ:MSFT) dove into his cloud growth bug and weak guide. Even Alphabet (NASDAQ:GOOGLE) just slipped on a disappointing earnings report.

We will also profit from these market moving heavyweights.

AAPL Apple $149.35
AMZN Amazon $115.66
XOM exxonmobile $107.14

Apple (AAPL)

Apple store.  Apple Inc. (AAPL) sells consumer electronics products, software, services, and personal computers.

Source: Vytautas Kielaitis / Shutterstock.com

One of the main actions to take into account is Apple (NASDAQ:AAPL), which will publish its fourth-quarter earnings on October 27. In this report, all eyes will be on its iPhone 14 sales.

Investors want to see if the latest release is on track for a solid growth cycle, or if global macroeconomic woes have started to weigh on demand. For now, Street is looking for earnings per share of $1.27 on sales of $88.79 million.

german bank (NYSE:database) Analyst Sidney Ho expects Apple’s earnings to be in line with expectations. Furthermore, as he points out LaMosca.com“Who thinks [Apple’s] The market is already anticipating slower growth, especially given recent media reports suggesting Apple is cutting iPhone orders and the stock is down 20% from its August peak. He also believes the company’s “strong balance sheet will shine in the current environment,” underpinning its $100 billion annual dividend and share buyback payments.”

Morgan Stanley (NYSE:MS) analyst Eric Woodring sees fourth quarter revenue of $90.1 billion and December quarter revenue of $133.7 billion. Both would be above analysts’ expectations. The analyst also says that Apple is his first choice, reiterating an overweight rating, with a price target of $177.

After falling from $175 to $135, it appears that most of the market negativity has been priced in. Unless something shocking is discovered in the earnings report, I would like to see Apple shares challenge previous resistance around $162.50.

Amazon (AMZN)

Close-up of the Amazon logo on the Amazon campus in Palo Alto, California.  The Palo Alto location is home to the teams for A9 Search, Amazon Web Services, and Amazon Game Studios.  AMZN Shares

Source: Tada Images / Shutterstock.com

Amazon (NASDAQ:AMZN) will also release its earnings on October 27 and is another top stock to watch. The Street expects the company to earn 22 cents a share on sales of $127.57 billion, compared to earnings per share of 31 cents on sales of $110.81 billion year over year. There are also concerns that falling consumer demand could also have a negative impact on the report. Without helping, we have to remember that 63% of Americans currently live paycheck to paycheck.

In fact, many retailers, including Amazon, have had to deal with inventory issues. That would explain why Amazon held a second Prime Day shopping event this year. “The good news is that the consumer continues to spend,” DA Davidson analyst Tom Forte told MarketWatch. “The bad news is that they are not spending on e-commerce.”

We should also note that Amazon took a hit earlier this week in Microsoft’s cloud news. As reported by MarketWatch.com, Microsoft’s “Azure” grew 35%, a marked slowdown from growth of 40% the previous quarter and 50% a year ago, and forecasts suggest it could drop to 30% this quarter, while the overall revenue forecast It falls short of Wall Street expectations by more than $2 billion. .” Those concerns about cloud growth quickly spread to AMZN stock earlier this week.

There is also a lot of news around the idea that Amazon is trying to adjust its operating expenses. The company has already said it would reduce corporate hiring in retail. There was also a slowdown in the opening of new warehouses and distribution centers with the economy as it is. We should also consider that consumers are likely to tighten their belts this holiday season, with inflation soaring.

ExxonMobil (XOM)

Exxon Gas Retail Location

Source: Jonathan Weiss / Shutterstock.com

exxonmobile (NYSE:XOM) will publish earnings for the third quarter of 2022 on October 28. With the recent wild surge in the energy sector, companies like Exxon are generating record free cash flow, say analysts at TipRanks.com. they added, “Based on where oil and gas prices held during the third quarter, consensus earnings per share estimates point to $3.81, which is a massive increase of ~141% compared to last year, albeit slightly lower. lower quarter over quarter as commodity prices declined sequentially. . Still, the third quarter should be a huge quarter for Exxon.”

The company is also in a prime position to return more money to shareholders. Exxon has already increased its dividend to $15 billion, or $3.52 per share, which could rise further in coming quarters. In addition, Exxon Mobil said that its operating profit could be around 11,000 million dollars against 6,700 million dollars annually. Analysts also expect Exxon to post earnings per share of $3.80 on sales of $104.6 billion.

While all of that sounds like great news, I should point out that XOM is technically overbought on RSI, MACD, and Williams’ %R. I would wait to buy XOM shares on future pullbacks.

As of the date of publication, Ian Cooper did not have (directly or indirectly) any position in the mentioned securities. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines. Ian Cooper, a contributor to InvestorPlace.com, has been researching stocks and options for web-based listings since 1999. Ian Cooper, a contributor to InvestorPlace.com, has been researching stocks and options for web-based listings since 1999.

Ian Cooper, a contributor to InvestorPlace.com, has been researching stocks and options for web-based listings since 1999.

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