In a sign of just how much those on Wall Street were looking forward to this week’s run of earnings reports, the Dow Jones Industrial Average, the NASDAQ, and the S&P 500 indices all hit fresh highs in recent days. After a somewhat muted September and October, it can be taken as a sign that equity investors are keen to see prices crack on towards a solid finish to the year, and to have a great start to 2022.
Here are some of the more impressive earnings reports of late that justify their stocks inclusion on your watchlist, if not in your portfolio.
1. Ford
Last week we wrote about how Ford was cruising towards multi-year highs, with last week’s earnings report providing a great catalyst for getting involved. The numbers were released Wednesday night and the automotive giant did indeed beat analyst expectations on their earnings per share, with revenue also contracting by less than what had been expected.
There had been some concern that even with a solid beat the report wouldn’t be good enough to justify the recent run, and shares had turned back from their high of the previous week in recent sessions. But the 7% dip they took appears to be over the top, and already in Thursday’s pre-market session they found a bid.
The company’s forward guidance was higher than the consensus, with full year adjusted EBIT now expected to land between $10.5 billion and $11.5 billion, versus prior guidance of $9 billion to $10 billion. This, coupled with the reinstatement of the quarterly dividend points towards a solid foundation on which the next leg of the rally can be based.
Investors can look for $15.50 to provide a fresh level of support and for Ford shares to tick quickly back towards the week before last's $17 mark, before kicking on from there. There’s every reason to think we’ll see them at $20 this side of the holidays.
2. Tesla
The original electric vehicle king, and the company you either love or hate reported their Q3 numbers week before last. The 25% rally in shares since the end of September should tell you everything you need to know about what the market was expecting, and it’s fair to say Tesla (NASDAQ:TSLA) didn’t disappoint. The 57% jump in year-on-year revenue beat even the higher-end expectations, with Q3 deliveries also coming in on top.
Between this and the news that Hertz (OTC:HTZZ) had placed an order for 100,000 vehicles, it was a good week for Tesla. Their shares jumped as much as 30% and we could be watching the start of a fresh eye-watering rally. Indeed, the folks over at Piper Sandler were out last week with a new street high price target of $1,300, suggesting there’s still an upside of some 30% to be had from Wednesday’s closing price.
The team is less than impressed with the competition, notwithstanding how well Ford’s foray into the electric vehicle market is going, noting that “many of the electric vehicle models that were supposed to derail Tesla have been on the market for several quarters now.”
3. Google (NASDAQ:GOOGL)
Not that the result was ever in doubt, but still, year-on-year revenue growth north of 40% from a $2 trillion company is just so impressive. Google’s topline EPS and bottom-line revenue both topped analyst expectations as the company continues to evolve. CEO Sundar Pichai spoke of this with the release, noting how “five years ago, I laid out our vision to become an AI-first company. This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners. Ongoing improvements to Search, and the new Pixel 6, are great examples."
Google’s shares popped to fresh all-time highs after Tuesday night’s release, coming within a couple of dollars of the $3,000 mark. It’s a big ticket price, but is there a more reliable tech stock to have in your portfolio for the rest of this year and into next? Unlikely.
