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Micron Technology, Inc. (NASDAQ:MU) has returned to the media spotlight after the recent outlook revisions. It seems analysts are keen to call a negative financial performance trend and imply that the stock could suffer. However, in order to have the full picture, we need to compare that to the fundamentals, possible offsetting factors and the current valuation of the company.
Compared to its peers, Alphabet Inc. (NASDAQ: GOOGL) has been trading on the verge of a 20x price-to-earnings ratio – relatively low for its historic averages. While the investors shy away from companies that heavily rely on advertising revenues, Alphabet depends on its cloud division to lead the growth.
However, with the majority of revenues in foreign currency, its surprising weakness is beyond their influence but possibly short-living.
It seems that most of the bad performance of Bed Bath & Beyond (NASDAQ:BBBY) is attributable to the negative performance history after 2019. The stock is beaten down by short-selling, with some 35% of shares being shorted by July 14th, 2022, and analysts are also posting low price targets for the stock which has driven it to a multi-year low valuation.
Block, Inc. (NYSE:SQ) just released the second quarter results, indicating an overall stagnation in revenues and earnings. However, some investors remain bullish as the company is building up its core business as well as seeing high growth in the Cash App. Even though 2022 has been bad for young growth companies, there may be a good case for Block to keep growing and become a new major player in the fintech space.
Alibaba Group Holding Limited (NYSE:BABA) just released the latest earnings report for the quarter ending on June 30th, showing a noticeable business slowdown based on decreased commerce activity in China. In this analysis, we will pair the risk factors for Alibaba with the fundamentals in order to see if the market is skewed in any direction.
Exxon Mobil Corporation (NYSE:XOM) posted record Q2 earnings of $17.9b, amounting to $38.95 billion in the last 12 months. This marks a 227% YoY quarterly earnings growth. Investors that were bullish on XOM a year ago are getting a solid 60% return, however we need to analyze if the abnormal market conditions will persist - or if price tailwinds have reached their peak for this cycle.
Amazon.com’s (NASDAQ:AMZN) second-quarter results last week were mixed, with a revenue beat and an EPS miss. Nevertheless, the results and guidance were clearly better than the market expected as the stock price closed 16.7% higher the following day. While the stock does appear to be reasonably valued, there are also several reasons to expect ongoing earnings volatility.
It is not a secret that Consumer Staples do better than average in market downturns, especially when inflation is added to the mix. At the moment this sector is still down for the year (-5.2%) but doing much better than the broad market.
As the earnings season reaches its peak, we’ll look into the latest results from The Procter & Gamble Company (NYSE: PG), a company that trades at a cheaper valuation than the sector’s average.
United Parcel Service, Inc. (NYSE: UPS) seems to be giving mixed signals despite the overall positive outlook from the latest earnings report. As delivery volumes shrank, the company increased revenue per piece.
Yet, despite reaching for such short-term fixes, the current P/E ratio mandates a look into an attractive, above-average yielding dividend.
When the company misses the earnings guidance once in a blue moon, its positive results hardly surprise anyone. Yet, The Coca-Cola Company (NYSE: KO) results were more exuberated after the beverage company raised the revenue expectations for the full year.
McDonald's Corporation (NYSE:MCD) just posted its Q2 earnings. While they are not great on the surface, investors are willing to gloss over the financial hit as they expect the company to recover and grow. The company posted a loss on a GAAP basis, but both adjusted metrics and outlook show resilience, here is what that may mean for the stock.
After a long period of stagnation, stock split and an overall disappointing performance, General Electric Company (NYSE: GE) is finally turning around, as the historic split into 3 distinct companies draws near.
A surprising beat (the strongest in 5 years) is primarily a result of robust demand in the aviation segment – that, in turn, speaks about the strength of the post-COVID-19 Pandemic aviation sector rebound.
Walmart's reduction on future earnings estimates is likely material to the company's stock price. While the effect may not be long term, the market seems to have responded fairly to the news, and it may take longer for the company to recover to previous levels.
Twitter, Inc. (NYSE: TWTR) unquestionably left a significant mark in the 1st half of 2022. As the drama still unfolds, this is the most straightforward way to look at the situation: Twitter, the company that didn’t want to be bought out, is suing Elon Musk (who initially wanted to buy Twitter but now doesn’t want to), to force him to buy Twitter.
As ad revenue dips across the board, platform earnings seem to be suffering – bringing the growth story and US$44b sticker price into question.
Meta Platforms' (NASDAQ: META) share price fell 7.6% on Friday after SNAP Inc's (NYSE: SNAP) 2nd quarter financial results pointed to a slowdown in digital ad spend. The prospect of a recession may also put pressure on the advertising industry. The market is already expecting Meta's EPS to be down around 29% year-on-year, and revenues to be flat to slightly lower. Some analysts now believe the results may be worse than previously expected.
While Microsoft Corporation (NASDAQ:MSFT) declined by 22% since January, we notice that both the fundamentals and price targets are holding firm for the company. In this article, we will re-cap the key fundamentals, and see what that can mean for the price in the future.
The stock market correction of 2022 will eventually be over, but regardless of whether it ends up as a full-blown recession, or a minor bump on the longest bull market in history – SNAP Inc. (NYSE: SNAP) will likely make the special list.
Since its peak value, once popular tech stock declined over 85%, signaling an erosion in value seen only in the dot-com bubble.
Taiwan Semiconductor Manufacturing (NYSE: TSM) announced solid results last week, with strong revenue growth, improved margins, and raised guidance. We previously pointed out that TSM has a strong track record with regard to generating returns on capital and is continuing to invest for the future. Since then, earnings have continued to compound despite concerns of an industry slowdown.
Few large companies experienced a fall from grace with a higher velocity than Netflix, Inc. (NASDAQ:NFLX), as it cratered over 70% year to date. Now, the stock is showing signs of bottoming, supported by the fact that the latest results were not as bad as expected.
The investors' community is arguing about the value (price-to-earnings ratio) vs. growth (subscribers added).
If banks give an initial pulse to the earnings season, this summer might be volatile. JPMorgan Chase & Co. (NYSE: JPM) is one of the financial institutions that kicked-off Q2 reporting, missing the consensus estimates as fees look to have dropped across the sector. While CEO Jamie Dimon remains optimistic about the bank's capabilities to navigate through a (potential) recession – the bank is already taking preventive actions, the first among them being a suspension of stock buybacks.
While the broad market didn't exhibit significant weakness before late last year, Uber Technologies, Inc. (NYSE: UBER) peaked as early as Q1 2021.
Even with significant revenue growth, as per the latest, the company still doesn't generate positive cash flow, which doesn't fare well given that the market is – by all metrics – in a recession.
Starbucks Corporation (NASDAQ:SBUX) is a $91b market cap company with $4.4b earnings in the last 12 months. The company is recovering from the pandemic, and the change in leadership has investors wondering if there is room to expand in the future. In this analysis, we will review the pricing and fundamental expectations of Starbucks.
Shopify Inc. (NYSE:SHOP) reverted to trading at pre-pandemic levels. It seems that investors have second thoughts on the company's capacity to make a lasting business out of the 2020 boost in online retail. Today, we will review the forecasts for Shpify, and what that may mean for investors.
