With US major indices trading at record highs, the next week could add excitement as companies begin reporting first-quarter earnings amid some encouraging signs of the country's economic recovery .
According to Refinitiv data, total revenues are expected to increase by 25% in the first quarter from a year ago. That would be the largest quarterly profit since 2018, when tax cuts under former President Donald Trump drove a surge in earnings growth.
The earnings season in the first quarter will also help alleviate some uncertainty regarding the future performance of technology stocks. which benefited enormously during the pandemic and home environment that followed the viral spread. If the tech giants continue to report strong profits and sales, it will indicate that these players can keep the profits they made during the COVID-19 outbreak.
Below we have shortlisted three stocks from different sectors. which we follow as the first quarter earnings season begins:
1. JPMorgan Chase
JPMorgan Chase (NYSE 🙂 will report its first quarter earnings on Wednesday April 14, before the market opens. Analysts expect earnings per share of $ 3.06 on revenues of $ 30.46 billion.
The Wall Street financial institution superpower surprised investors in January when it published and destroyed analyst expectations despite the devastating economic impact on some businesses and consumers caused by the lockdowns.
The global lender is seeing a rapid rebound in profitability after a few poor quarters, aided by its trading division and fees from its corporate and investment banking groups. Investors will want to know if the volatility in the markets during the first quarter again helped the lender to exceed expectations.
JPM shares closed at $ 156.28 Friday, after a strong rally this year as the US economic recovery accelerates. Shares are up 23% in 2021, which is useful for the 9% expansion of the S&P 500.
2. Delta Air Lines
Delta Air Lines ( NYSE 🙂 will report first quarter earnings on Thursday, April 15, before the market opens. On average, analysts expect a loss of $ 2.84 per share on revenue of $ 4.02 billion.
The global aviation industry is trying to make a comeback after a brutal 2020 in which air traffic plunged under pressure amid rising COVID-19 infections. Delta Air CEO Ed Bastian told employees in a New Year's note in January that the airline continues to strive for spring in a "year of recovery". The latest air travel data suggests that Bastian's revival expectations may have been correct.
Domestic air travel in the US is recovering with the acceleration of the introduction of the coronavirus vaccine. More than a million customers have flown with Delta in recent days, reaching a level the company has not seen since before the pandemic.
The Centers for Disease Control and Prevention said last month that vaccinated individuals do not need a COVID test and do not need to be quarantined when traveling inland. Shares of Delta Air closed at $ 49.27 on Friday, after more than doubling in the past year.
3. PepsiCo
Snack and beverage giant PepsiCo (NASDAQ 🙂 will also report first quarter earnings on Thursday before the market opens. Analysts expect an average of $ 1.12 in earnings per share on sales of $ 14.55 billion.
During the pandemic, Pepsi stocked up on snacks and beverages from home-bound consumers, aided by its diversified portfolio of snack brands, such as Tostitos, Fritos, Ruffles and Cheetos.
In an interview with Bloomberg in February, Chief Financial Officer Hugh Johnston described the company's recent performance as one of the best.
"People have to eat, they have to drink, and we figured out how to get it to them in the channels they want it," he said. Despite this impressive performance, the PEP stock has struggled this year, dropping around 4%. Shares closed at $ 142.57 on Friday.
