Articles for tag: Earnings, Investing, Stocks

April 11, 2025

Ron Finklestien

How Tariff Concerns are Impacting Earnings Projections

Market Watches Q1 Earnings Amid Tariff Uncertainty and Financial Reports Investors are keenly observing the Q1 reporting cycle that began with quarterly earnings from JPMorgan (JPM), Wells Fargo (WFC), Morgan Stanley (MS), and others last Friday. This cycle is particularly important as the market grapples with broader economic uncertainties stemming from tariff-related concerns. The focus on tariffs is warranted, given the rising treasury bond yields, fluctuations in the U.S. dollar’s exchange rate, and a decline in consumer and business confidence. These factors are influential, as they can impact spending habits among consumers and businesses alike, raising risks to the growth

April 4, 2025

Ron Finklestien

Analyzing Bank Stocks Amid Rising Tariff Concerns

Bank Stocks in Focus Amid Tariff-Induced Market Turbulence Understanding how banks operate reveals their business isn’t as affected by tariffs as one might think. However, the current performance of bank stocks suggests market participants are concerned about broader economic conditions amid ongoing tariff-related uncertainty. The following chart illustrates the performance of JPMorgan (JPM), Wells Fargo (WFC), Bank of America (BAC), and Morgan Stanley (MS) relative to the S&P 500 index since February 19th. Notably, two of these banks will kick off the Q1 2025 reporting cycle for the Finance sector on Friday, April 11th, before the market opens. Image Source:

March 21, 2025

Ron Finklestien

Understanding the Insights from Early Q1 Earnings Reports

Early Q1 Earnings Reports Show Mixed Results Ahead of Big Banks The Q1 earnings reporting cycle officially begins on April 11th when major banks disclose their March-quarter results. However, several companies with fiscal quarters ending in February have already shared their early results. To date, these reports have been mixed, offering insights into the market’s current dynamics. Initial Earnings Results Highlight Concerns As of Friday, March 21st, 14 S&P 500 companies, including notable players like Nike (NKE) and FedEx (FDX), have reported results. Five additional companies, such as Lululemon (LULU) and Paychex (PAYX), are scheduled to release their earnings this

March 14, 2025

Ron Finklestien

Anticipating the Upcoming Q1 Earnings Reports

Q1 Earnings Season Begins with Mixed Results and Concerns As the Q1 reporting cycle heats up, major banks are set to release their March-quarter results on April 11th. However, the earnings season has already commenced, with four S&P 500 companies reporting results for their fiscal quarters that ended in February. This week, an additional ten S&P 500 members are expected to unveil their February-quarter results, including prominent firms like Nike (NKE), FedEx (FDX), and Accenture (ACN). Research organizations, including ours, incorporate these February results into the March-quarter analysis. By the time the major banks report a month from now, nearly

March 7, 2025

Ron Finklestien

A Glimpse into the Upcoming Q1 2025 Earnings Season

Costco and AutoZone’s Earnings Signal New Trends for Q1 2025 The kickoff to the Q1 2025 earnings season was marked by the recent releases from Costco (COST) and AutoZone (AZO). This week, four additional S&P 500 companies are preparing to report their Q1 results, with Oracle (ORCL) set to announce on Monday, March 10th, and Adobe (ADBE) on Wednesday, March 12th. These earnings reports from Costco, AutoZone, Oracle, and Adobe pertain to their fiscal quarters ending in February, which will be included in the overall tally for Q1, as counted by us and various research organizations. By the time major

March 1, 2025

Ron Finklestien

“Retail Performance Takes Center Stage in Q4 Earnings Roundup”

Retail Sector Earnings Reports: Key Insights and Trends The retail sector remains in the spotlight this week, with major companies like Target (TGT), Best Buy (BBY), Costco (COST), and Macy’s (M) set to release their earnings results. Early indicators show steady consumer spending, reflecting a consistent trend observed in previous quarters. Although recent consumer confidence surveys indicate a slight decline, longer-term trends remain positive, bolstered by a strong labor market and rising wages. In the past few quarters, inflation has impacted consumer spending, particularly among lower-income households. This situation has driven most consumers to prioritize essential purchases, leading to subdued

January 10, 2025

Ron Finklestien

Will Bank Stocks Maintain Their Current Growth Trajectory?

Bank Earnings Preview: JPMorgan, Wells Fargo, and Citigroup Set to Report JPMorgan’s shares have declined slightly, down just over 3% since their highs in late November, which performs better than the Zacks Finance sector average but lags behind the broader market, which has remained flat during the same period. Since the elections in November, however, JPMorgan’s stock has risen nearly 2%, while the S&P 500 index has shown modest losses. Wells Fargo (WFC) will also kick off the Q4 earnings season for the Finance sector on Wednesday, January 15th. Since election day, its shares have barely moved into positive territory,

October 6, 2024

Ron Finklestien

Is PepsiCo Stock Worth Buying Ahead of Earnings Report?

PepsiCo Q3 Expectations PepsiCo (PEP) shares have only risen 1.2% in 2024, staying flat as investors have been favoring technology stocks over consumer staples. Analysts have lowered Q3 earnings estimates by 2%, expecting a 2.2% growth from last year. Revenue predictions also dipped slightly by 1%, anticipating a 1.9% increase from the previous year. The company’s revenue growth has slowed recently, as shown in the chart below. Image Source: Zacks Investment Research PepsiCo’s current forward 12-month earnings valuation at 19.6X is lower than its historical median of 23.6X, reflecting investors’ tempered growth expectations. Should You Invest in PepsiCo? Analysts aren’t

September 28, 2024

Ron Finklestien

Decoding the Q3 Financial Landscape

An Unraveling Tapestry: Costco In the latest earnings report, Costco displayed a mixed bag of results sending its shares on a downward spiral. Despite narrowly missing revenue targets, the company managed to surpass bottom-line estimates. With a backdrop of challenging consumer spending habits, Costco’s success story is one many peers envy. Impressively, Costco’s earnings for the quarter saw a 6.1% increase on a 1% revenue rise. The company’s same-store sales in the U.S. and Canada grew by 5.3% and 5.5%, respectively. Notably, Costco continues to shine in discretionary categories like jewelry, furniture, and tires, showing robust digital growth with a

May 17, 2024

Ron Finklestien

Retail Earnings: A Closer Look

Walmart’s WMT beat-and-raise quarterly release should ordinarily provide favorable read-throughs for Target TGT, which is scheduled to report results before the market’s open on Wednesday, May 22nd. But the two companies have different business models, and that makes expectations off target. To start, Walmart has effectively added a technological component to its well-established reputation for value. Walmart’s digital prowess has allowed it to offer a variety of convenient shopping options, allowing it to gain market share, with mostly high-income households finding the company’s service offerings hard to resist. The company’s revenues in the quarter increased +5.8% (in constant currency), with