Earnings season is back and kicks off with the big banks.
But most investors are really waiting for the main event: the FAANG stocks.
You know them: Facebook, Apple, Amazon, Netflix and Alphabet (aka Google).
Netflix will be the first of the FAANGs to report earnings. It reports on July 20. But all 5 will have reported by the end of the month.
They will set the tone for earnings season.
4 of the 5 are hitting new all-time highs going into these reports.
Is the market already pricing in good news?
Or can another great quarter push these stocks up even higher?
FAANG’s Spectacular Earnings Charts
1.
Facebook
FB
has beat 4 quarters in a row. The company is still in the news for various issues, but shares have hit new highs heading into the report as it makes a push into the creator economy. It is the cheapest of the FAANGs with a forward P/E of “just” 26.6. Is Facebook a value stock?
2.
Apple
AAPL
has the best earnings surprise track record of the FAANGs. It hasn’t missed in 5 years. That’s impressive while a pandemic is ongoing. Shares are up only 9% year-to-date, but have busted out to new highs. With a forward P/E of 28, is it too pricey at these levels?
3.
Amazon
AMZN
has beat big four quarters in a row as the big retailers have cashed in during the pandemic. Shares have finally busted out of a multi-month slump and are back at new highs. But is all the good news already priced in?
4.
Netflix
NFLX
has had a spotty earnings surprise track record during the pandemic. It beat last quarter but has missed the four quarters prior to that. Year-to-date shares are up just 1.3%, underperforming the S&P 500 which is up 16%. Will earnings give the shares momentum?
5.
Alphabet
GOOGL
has beaten 4 quarters in a row, with last quarter one of the company’s best quarters ever. Shares are on fire, up 46% year-to-date and at new all-time highs. It now trades at 28x forward earnings. But after last quarter’s amazing results, can it do it again? Expectations are high.
[In full disclosure, Tracey owns shares of FB, AMZN and GOOGL in her personal portfolio.]
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See 3 crypto-related stocks now >>
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