Equity investors should brace themselves for another busy week as some of the largest US companies are reporting quarterly earnings amid strong signs that the country's economic recovery is helping businesses return to normal.
So far, a record 87% of companies have surpassed estimates led by technology giants such as (NASDAQ 🙂 and (NASDAQ :). According to Refinitiv, revenues are expected to increase by more than 46% in the first quarter.
As corporate profitability grows amid the economic reopening, investors are concerned that the US central bank may be forced to tighten monetary policy ahead of schedule.
The S&P 500 was up 5.2% in April, adding to the 11.2% expansion for the year so far. The rise was up 2.7% in April, while the tech heavyweight gained 5.4% in the last month.
Over the next week, investors will have the opportunity to find out the most recent quarterly earnings from some of the largest companies. Below are three stocks from different sectors worth focusing on:
1. Berkshire Hathaway
Warren Buffett's Berkshire Hathaway (NYSE :), (NYSE: ) released its Q1 2021 on Saturday. The results showed that its conglomerate's holdings – including interests in insurance, transportation and utilities, among others – delivered an operating profit 20% higher than the same period a year ago.
BRKb Weekly TTM
Net income, reflecting Berkshire & # 39; s equity portfolio of $ 282 billion, fluctuated to a profit of $ 11.7 billion in the quarter, compared to a loss of $ 49.7 billion a year earlier, as the pandemic started racing through the US and stocks collapsed.
At the Berkshire annual meeting, said Buffett, the company's CEO and arguably one of the most respected business magnates and investors in the country. boom in retail and day trading is not sustainable. "The gambling impulse is very strong with people all over the world," he told investors.
"It creates its own reality for a while and no one tells you when the clock will strike 12 and it all turns into pumpkins and mice."
Berkshire stock has gained 18% this year. They closed for $ 274.95 on Friday.
2. Pfizer
Global pharmaceutical giant Pfizer (NYSE 🙂 will report its Q1 earnings on Tuesday, May 4, before the market opens. Analysts expect the healthcare mega capacity to deliver $ 0.78 per share on sales of $ 13.65 billion.
PFE Weekly TTM
Pfizer is one of the world leaders in the production of COVID-19 vaccines, delivering billions of shots to governments around the world fighting the deadly virus. The company said in February that it is on track to generate about $ 15 billion in revenue this year from the COVID-19 vaccine it developed with Germany's BioNTech SE (NASDAQ :).
Company officials, led by Chief Executive Albert Bourla, hope their vaccine can adopt new variants that will help the company get a better price for their inoculations in the future. The company also plans to develop new products using its messenger RNA technology.
Stocks of Pfizer have gained 5% this year, closing at $ 38.65 on Friday.
3. PayPal
Payment processing giant PayPal Holdings (NASDAQ 🙂 is scheduled to report first quarter earnings on Wednesday, May 5, after markets close. On average, analysts expect the company to earn $ 1.01 per share in profit on revenue of $ 5.91 billion.
PYPL Weekly TTM
As consumers flock to online shopping during the pandemic, PayPal's platform has experienced a volume increase that should be a major contributor to revenue. In the technology giant saw its profits triple compared to the benchmark for the same period a year ago.
"PayPal has never been more relevant and needed than it is today," Chief Executive Officer Dan Schulman told Bloomberg in an interview in February.
"Clearly, at three to five years, the world has made a leap forward into the next digital age, and there's no going back from here."
Driven by this unprecedented shift to e-commerce, PYPL shares have more than doubled in the past year, closing at $ 262.29 a share on Friday.
