For Immediate Release
Chicago, IL – April 26, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured on the blog include: Amgen Inc. AMGN, Chevron Corp. CVX, The Coca-Cola Co. KO, Visa Inc. V and Merck & Co. Inc. MRK.
Here are the highlights from Monday’s analyst blog:
5 blue-chip stocks likely to benefit from earnings results this week
The earnings season for the first quarter of 2022 picked up speed last week. This week will be a big one as 879 companies will release their earnings results. The first quarter was disappointing for Wall Street.
Most US companies have expressed grave concern about the ongoing disruption of the global supply chain system and the resulting skyrocketing inflation, which is significantly increasing corporate input costs.
The 30-stock Dow index — popularly known as Wall Street’s blue-chip index — ended the first quarter of 2022 in negative territory. A handful of blue-chip stocks have already reported their quarterly financials, and the results have been mixed.
Five blue-chip stocks are likely to beat earnings estimates this week. Investing in these stocks should bear fruit in the short term. These are – amgen inc, chevron corp, The Coca Cola Co., visa inc and Merck & Co. Inc.
Q1 results at an early stage
On April 22, 100 S&P 500 companies announced their earnings results. Year-over-year, these companies’ total revenues are down 2.1% on revenues that are up 29.1%. Additionally, 77% of these companies beat earnings estimates and 72% beat revenue estimates. For the first quarter overall, total earnings for the S&P 500 Index are expected to rise 5.9% year over year on earnings up 10.6%.
Five Dow stocks are set to report earnings this week. Each of these stocks carries either a Zacks Rank #2 (Buy) or 3 (Hold) and has a positive value Result ESP. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks can be found here.
Our research shows that stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP have as much as a 70% chance of hitting earnings. These stocks are expected to appreciate in value following the release of their earnings. You can discover the best stocks to buy or sell before they are reported with our Result ESP filter.
rafters is one of the world’s best positioned integrated oil companies to achieve a sustainable production ramp-up. CVX’s existing project pipeline is one of the best in the industry thanks to its prime position in the lucrative Permian Basin. WTI crude oil price is hovering well above $100 a barrel. The price is likely to remain high as the conflict between Russia and Ukraine has not yet been resolved.
Chevron’s acquisition of Noble Energy has expanded its presence in the region and DJ pool. CVX now has access to Noble Energy’s low-cost, proven reserves and cash-generating offshore assets in Israel – particularly its flagship Leviathan natural gas project – strengthening its position in the Mediterranean.
Zacks Rank #2 CVX has an Earnings ESP of +2.88%. For the current year, an earnings growth rate of more than 100% is expected. The Zacks consensus estimate for the year to date is up 10.3% over the past 7 days.
Chevron has had earnings surprises in two of the last four reported quarters, averaging a 6.3% increase. The company wants to release result results on April 29, before the opening bell.
Coke has benefited from its strategic transformation and the ongoing recovery around the world. KO’s top line reflected gains from higher prices and an increase in concentrate sales. The Coca-Cola raised its guidance, buoyed by momentum in its business. KO is ready to benefit from increasing investments in digital expansion.
Zacks Rank #3 KO has an Earnings ESP of +0.75%. An earnings growth rate of 5.2% is expected for the current year. Coca-Cola posted earnings surprises over the past four quarters, with an average increase of 13.5%. The company wants to release result results on April 25, before the opening bell.
Visas has undertaken mergers and acquisitions, partnerships and minority investments to achieve growth. V’s investments in technology solidify its position in the payments market. Switching payments to digital mode is a boon for Visa.
The rollout of coronavirus vaccines and the gradual rebound in consumer confidence should further boost spending and in turn increase business volume. Based on its strong cash position, Visa remains committed to increasing shareholder value. V’s balance sheet strength is commendable.
Zacks Rank #3 V has an Earnings ESP of +0.30%. For the current year, an earnings growth rate of 19.3% is expected. Visa has had earnings surprises over the past four quarters under review, with an average increase of 8.6%. The company wants to release result results on April 26, after the closing bell.
Merck & Co. has a strong cancer pipeline, including Keytruda, which should help propel long-term growth. The split into two companies is intended to allow Merck to generate higher profits than the combined company.
MRK’s drugs such as Keytruda, Lynparza and Bridion have driven sales. Animal health and vaccine products remain key growth drivers. Its new oral antiviral pill for COVID-19, molnupiravir, will be a key sales driver in 2022.
Zack’s Rank #3 MRK has +3.36% Win ESP. For the current year, an earnings growth rate of 19.4% is expected. Merck has had earnings surprises in two of the last four reported quarters, averaging a 5.3% increase. The company wants to release result results on April 28, before the opening bell.
amgen benefits from growing sales of its flagship drugs such as Prolia, Repatha, Xgeva and biosimilars. Amgen is rapidly expanding its robust pipeline of early- and late-stage assets. Several Phase III evaluations are pending in 2022. Lumakras, a first-in-class lung cancer treatment, has gotten off to an excellent start, while studies to expand AMGN’s label are progressing rapidly.
Zacks Rank #3 Amgen has +2.58% Win ESP. An earnings growth rate of 3% is expected for the current year. The Zacks consensus estimate for the year to date is up 0.1% over the past 7 days.
AMGN has had earnings surprises in three of the last four reported quarters, averaging a 3.6% increase. The company wants to release result results on April 27, after the closing bell.
Stay up to date with upcoming earnings announcements Zack’s earnings calendar.
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Chevron Corporation (CVX): Free Stock Research Report
Visa Inc. (V): Free Stock Research Report
CocaCola Company The (KO): Free Stock Research Report
Merck & Co., Inc. (MRK): Free Stock Research Report
Amgen Inc. (AMGN): Free Stock Research Report
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