Here’s your weekly Investing Action Plan: what you need to know as an investor for the coming week. The Q2 reporting season ramps up with results from tech stocks Netflix and Intel as well as top restaurant chains like Chipotle. Meanwhile, Blue Origin is due to launch its first crewed flight as the space tourism race intensifies.
Stocks To Watch
UnitedHealth (UNH) is in a flat base with a 426.08 buy point. Goldman Sachs (GS) is also in a flat base, working on a 393.36 entry, but 385.43 and a bounce above the 50-day line represent early buying opportunities. JPMorgan Chase (JPM) has a flat base with a 167.54 buy point, but a strong move above the 50-day line marks an early entry. Honeywell (HON) is just below 234.12 buy point from shallow cup base. Home Depot (HD) has a 345.79 flat-base buy point but 324.52 is an early entry.
Netflix Sets Low Bar For Q2
The internet television network Netflix will release Q2 results late Tuesday, but Wall Street is bracing for a disappointing report. Netflix (NFLX) forecast adding just 1 million new subscribers in the June quarter, vs. 10.09 million added in the year-earlier period. Netflix faces difficult comparisons to last year when it pulled forward huge subscriber gains amid stay-at-home orders during the Covid-19 pandemic. And with 207.6 million subscribers worldwide as of March 31, Netflix could be seeing slower growth ahead. Analysts expect EPS to double to $3.18 as sales climb 19% to $7.32 billion. Investors also will be looking for more details about Netflix’s planned foray into video games.
Intel Poised For Earnings Slide
The chipmaker reports late Thursday. Analysts expect EPS to drop 13% to $1.07 with sales down 10% to $17.8 billion. Heading into the report, Intel (INTC) has posted flat or declining sales and earnings for three straight quarters, as it struggles with production of next-generation chips for personal computers and servers.
More Airlines To Report
United Airlines (UAL) reports late Tuesday, while American Airlines (AAL) and Southwest (LUV) report early Thursday, as the industry recovers from the pandemic-era lows last year. Wall Street expects United’s per-share losses to narrow to $4.01 from $9.31 a year ago, as revenue jumps 262% to $5.3 billion. American’s per-share losses are seen improving to $2.12 from $7.82, as revenue surges 350% to $7.298 billion. Southwest was seen losing 27 cents per share vs. a year-ago loss of $2.67 a share, with revenue up 288% to $3.906 billion.
Top Restaurant Chains Due
Fast-casual Mexican chain Chipotle Mexican Grill (CMG) reports late Tuesday, while Domino’s Pizza (DPZ) reports early Thursday. Wall Street expects Chipotle to earn $6.51 per share, a roughly 1,500% jump from a year ago, with sales up 38% to $1.883 billion. Domino’s is expected to earn $2.86 per share, down 4%, on sales of $971 million, up 5.5%. The companies report as they lap their pandemic-era lows, but face questions about the durability of digital ordering and delivery as more people return to restaurants.
Social Media Earnings
Twitter (TWTR) and Snap (SNAP) report quarterly results late Thursday. Analysts see Twitter swinging to a profit of 1 cent a share vs. a loss of $1.39 a share in the year-ago period, while revenue surges 55% to $1.06 billion. The consensus on Snap is for per-share losses to narrow to 1 cent from 8 cents a year ago. Revenue is expected to jump 86% to $845 million. Snap, currently in a buy range, has been investing heavily in product upgrades. Twitter recently announced a new subscription service plan.
Jeff Bezos Heads To Space
Blue Origin will launch its first crewed flight Tuesday aboard a New Shepard rocket at 9 a.m. ET, just over a week after Virgin Galactic (SPCE) sent founder Richard Branson into space. Blue Origin said teen Oliver Daemen will join founder Jeff Bezos and the rest of crew of the New Shepard rocket as the first paying customer for the company. That will mark the beginning of commercial operations for the program, according to the company, though it’s unclear when regular service will begin.
IBM (IBM) announces quarterly results late Monday. The consensus is for EPS of $2.31 a share, up 6%, on revenue of $18.3 billion, up 1%.
Intuitive Surgical (ISRG) reports late Tuesday, and EPS is seen soaring 177% to $3.07 as revenue jumps 49% to $1.27 billion.
American Express (AXP) reports early Friday. Analysts expect EPS to surge 452% year over year to $1.62. They see revenue jumping 24% to $9.48 billion.
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