The FAANG stocks — Facebook

FB

, Amazon

AMZN

, Apple

AAPL

, Netflix

NFLX

and Alphabet

GOOGL

— are among the winners of the coronavirus pandemic. This is especially thanks to the global digital shift that has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. Now, all eyes are currently on FAANGs ahead of its quarterly results.

Streaming giant Netflix

NFLX

, the first company in the FAANG group to report Q3 earnings, came up with disappointing results on Oct 20. The company registered its weakest subscriber gains in four years and missed the earnings estimate (read:

Netflix Disappoints: ETFs in Focus

).

Facebook

Facebook is expected to release its earnings report on Oct 29 after market close. Our proven model predicts reasonable chances of beating estimates for Facebook this time around as it has a Zacks Rank #3 (Hold) and an

Earnings ESP

of +1.82%. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

The social media giant has seen positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. However, the current Zacks Consensus Estimate for the yet-to-be reported quarter indicates an earnings decline of 9% from the year-ago reported figure. Revenues are expected to increase 12.2%. Facebook delivered earnings surprise of 9.11%, on average, in the last four quarters. The stock has a VGM Score of B but belongs to a bottom-ranked Zacks industry (

bottom 19%

). Shares of FB were up nearly 19% in the past three months.

Amazon

Amazon, slated to report on Oct 29 after market close, has a Zacks Rank #3 and an Earnings ESP of +34.39%. The stock saw positive earnings estimate revision of a couple of cents over the past 30 days for the second quarter. The Zacks Consensus Estimate represents substantial year-over-year earnings growth of 71.9%.

Amazon’s earnings surprise history is impressive, with an average beat of 132.03% for the last four quarters. Additionally, the company is expected to report revenue growth of 32.7%. The stock has a top VGM Score of B and falls under a top-ranked Zacks industry (

top 31%

). The online e-commerce behemoth has witnessed share price increase of 5% over the past three months.

Apple

Apple has a Zacks Rank #3 and an Earnings ESP of +2.97%. The stock saw no earnings estimate revision over the past 30 days for the fiscal fourth quarter and its earnings surprise history is strong. It delivered an earnings surprise of 16.43%, on average, over the past four quarters. Apple is expected to suffer substantial earnings decline of 9.2% from the year-ago quarter. Revenues are expected to fall a modest 0.5% year over year. It has a VGM Score of B and belongs to a top-ranked Zacks industry (

top 48%

). The stock has rallied nearly 21% over the past three months. Apple is set to report earnings on Oct 29 after market close (read:

ETFs Popping on Apple and Amazon Events

).

Alphabet

Alphabet has a Zacks Rank #2 and an Earnings ESP of +7.40%. It saw solid earnings estimate revision of 13 cents over the past 30 days for the to-be-reported quarter and its earnings are expected to grow 12.1%. Its earnings surprise track over the past four quarters is good with the beat being 3.97%, on average. Revenues are expected to grow 6.9% from the year-ago quarter. However, the stock falls under a bottom-ranked Zacks industry (

bottom 19%

). The Internet behemoth has gained about 4% in the past three months. The company will report after the closing bell on Oct 29 (see:

all the Technology ETFs here

).

ETFs to Tap

Given this, investors may want to play these stocks with the help of ETFs. Below we have highlighted five ETFs having the largest exposure to FAANGs.

MicroSectors FANG+ ETN

FNGS

:

This ETN accounts for 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3.

Invesco QQQ

QQQ

:

This fund makes up for 31.8% share in FAANGs and has a Zacks ETF Rank #1 with a Medium risk outlook.

iShares Evolved U.S. Technology ETF

IETC

:

This fund accounts for 29.2% share in FAANG stocks.

iShares North American Tech ETF (IGM):

This product accounts for about 26.9% in the FAANG group and has a Zacks ETF Rank #2 with a Medium risk outlook (read:

5 Top-Ranked Tech ETFs to Buy on Decade’s Strongest PC Growth

).

iShares Russell 1000 Growth ETF

IWF

:

This ETF allocates a combined 25.2% share in FAANG stocks and has a Zacks ETF Rank #1 with a Medium risk outlook.

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