Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

3 Stocks to Watch Next Week: IBM, Netflix, Tesla Motors

By Haris Anwar/Investing.comStock MarketsJul 17, 2022 06:34AM ET
www.investing.com/analysis/3-stocks-to-watch-next-week-ibm-netflix-tesla-motors-200627202?utm_source=yahoo&utm_medium=referral&utm_campaign=yahoo_finance
3 Stocks to Watch Next Week: IBM, Netflix, Tesla Motors
By Haris Anwar/Investing.com   |  Jul 17, 2022 06:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
IBM
-2.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NFLX
-4.49%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
-4.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Some of the largest US companies are scheduled to report next week.

  • Netflix’s subscriber growth is in focus after a 70% plunge in its stock this year.

  • Tesla, which is dealing with the production loss from China shutdowns, reports Wednesday.

Earnings will take the center stage next week when some of the largest US companies begin reporting their latest quarterly numbers amid concerns that the four-decade high rate of inflation, rising interest rates, and persistent supply-chain disruptions will slow growth.

In addition to hard numbers, investors will be closely scanning the earning statements and the management comments about the future outlook to look for signs of softening demand, cost cutting measures, or changes in capital spending plans.

The highest inflation in decades is forcing the US Federal Reserve to pursue an aggressive monetary tightening, a move which has hurt businesses and households alike, and made consumers more pessimistic about the economy.

Analysts, however, still expect some companies to report higher profits, especially the ones that continue to retain pricing power. Earnings for the S&P 500 companies are expected to gain 5.6%, based on actual reports and estimates, according to I/B/E/S data from Refinitiv. As of Friday morning, 35 S&P companies had reported, and 80% of those reported earnings above forecasts, Refinitiv found.

Below, we've short-listed three stocks from different sectors we’re monitoring as Q2 earnings season ramps into full swing:

1. IBM

IBM (NYSE:IBM) will report its latest quarterly numbers on Monday, July 18, after the market close. Analyst consensus on IBM is for EPS of $2.27 on revenue of $15.09 billion for the quarter ended June 30.

Big Blue, which is in the middle of a major turnaround, is showing some signs that it is succeeding at bringing additional sales from its cloud business. In its last earnings report, the New York-based company posted sales that topped analysts’ estimates. The results showed strong demand for hybrid-cloud offerings, signaling continued momentum for its transition to a business fueled by cloud-based software and consulting.

Arvind Krishna, who took over as CEO from Ginni Rometty in 2021, is focusing on artificial intelligence and the cloud to revive growth. Krishna has reorganized the company’s business around a hybrid-cloud strategy, which allows customers to store data in private servers and on multiple public clouds.

Shares of IBM, which closed Friday at $139.92, have gained about 5% this year, outperforming the Nasdaq-100 Index, which is down 27% during the same period.

IBM Fair Value per InvestingPro+
IBM Fair Value per InvestingPro+

Source: Investing Pro+

2. Netflix

Streaming entertainment giant Netflix (NASDAQ:NFLX) is scheduled to report Q2 2022 earnings on Tuesday, July 19, after the market close. Analysts are expecting $2.96 a share profit on sales of $8.03 billion.

Netflix is among the worst-performing mega-cap technology stocks in the current market rout as the Los Gatos-based company lost its growth momentum after the pandemic-era surge in subscribers ended. NFLX stock, which closed on Friday at $189.11, is down about 70% this year.

After losing 200,000 customers in the first quarter, Netflix predicted in April its subscriber base will shrink by another 2 million customers in Q2, a huge setback for a company that regularly grew by 25 million subscribers or more a year. Netflix also plans to curb its spending on films and TV shows in response to the customer losses.

NFLX Fair Value per InvestingPro+
NFLX Fair Value per InvestingPro+

Source: Investing Pro+

3. Tesla

Electric vehicle maker Tesla (NASDAQ:TSLA) will report Q2 earnings on Wednesday, July 20, after the market close. Analysts are expecting $1.86 a share profit on sales of $16.52 billion.

The Austin, Texas-based EV manufacturer reported this month that vehicle deliveries fell quarter-over-quarter for the first time in more than two years, hurt by the factory shutdown in China and supply-chain disruptions.

Deliveries, however, were up roughly 27% from last year’s second quarter, showing Elon Musk’s company was able to handle supply chain issues much better than traditional automakers who had to idle factories and cut production.

On top of the short-term production challenges that automakers are facing, growing macroeconomic headwinds further diminish their growth outlook.

JPMorgan in a note this month dropped Tesla’s Q2 earnings per share estimate to $1.70 from $2.26 and the full-year estimate to $10.80 from $11.50, warning of the potential for sharp battery metals inflation to cut into Tesla’s profits. Tesla shares, after falling 31% this year, closed on Friday at $720.20.

TSLA Fair Value per InvestingPro+
TSLA Fair Value per InvestingPro+

Source: Investing Pro+

Disclosure: The author is long Netflix.

***

Looking to get up to speed on your next idea? With InvestingPro+ you can find

  • Any company’s financials for the last 10 years

  • Financial health scores for profitability, growth, and more
  • A fair value calculated from dozens of financial models

  • Quick comparison to the company’s peers

  • Fundamental and performance charts

And a lot more. Get all the key data fast so you can make an informed decision, with InvestingPro+. Learn More »

3 Stocks to Watch Next Week: IBM, Netflix, Tesla Motors
 

Related Articles

Dr. Arnout ter Schure
Nasdaq 100 Could Target $9500 By Dr. Arnout ter Schure - Sep 23, 2022 17

Three weeks ago (see here) I was tracking a possible impulse move down for the Nasdaq 100 from the mid-August high (i.e., five waves lower as per the Elliott Wave Principle (EWP))....

3 Stocks to Watch Next Week: IBM, Netflix, Tesla Motors

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Art Carrano
Art Carrano Jul 17, 2022 1:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Long IBM at $126.19. Over 5% div.
Mohd Izhar Muslim
Mohd Izhar Muslim Jul 17, 2022 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you for sharing the article 💯
Jacob Mo
JWM90 Jul 17, 2022 10:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"The highest inflation in decades is forcing the US Federal Reserve to pursue an aggressive monetary tightening, a move which has hurt businesses and households alike, and made consumers more pessimistic about the economy." Wait a minute, businesses and consumers are pessimistic because of the Fed's action? Or, are businesses and consumers pessimistic because costs for EVERYTHING appear to be out of control. Labor costs, costs on basic necessities.
Paul Kerber
Paul Kerber Jul 17, 2022 10:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fear is the name of the game, so reaction is raise prices as it rolls Thur the economy. feeding on it self. Consumers are easy targets and pay the higher prices. high interest rates don't fix it fully and you stagflation .
ge Kret
ge Kret Jul 17, 2022 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love driving my Tesla. Its so much fun and the fuel price is not a factor for me because i have solar panels. Everyone should test drive a Tesla btw its free and you will love it. Go Elon
Robert Cox
Robert Cox Jul 17, 2022 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lol! Nice try. Just wait until you get a flat tire.
Asif King
Asif King Jul 17, 2022 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
call me 03417707047
ZS Beck
ZS Beck Jul 17, 2022 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just pay for your cracked windshield...16K?
Art Carrano
Art Carrano Jul 17, 2022 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How much did the solar panels cost? They're around 20k here.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email