Continued uncertainty over the coronavirus, offset by optimism about the massive stimulus package proposed by President-elect Joe Biden, who will take office in a few days, will characterize next week's vote. At the same time, some of the largest US companies are starting to report fourth quarter 2020 earnings.
On Thursday, Biden revealed the breakdown of his $ 1.9 trillion proposed package, which aims to help COVID-19-ravaged families and businesses until vaccines are widely distributed. The plan includes incentive checks and unemployment support.
Several mega-cap companies will release their latest reports, at a time when investors need a solid signal that corporate America is coming out of a recession and that underlying demand remains strong. In a week likely to be packed with important announcements, we'll focus on these three stocks:
1. Netflix
The streaming entertainment giant Netflix (NASDAQ 🙂 will report fourth quarter revenues on Tuesday, January 19 after the market closes. Analysts expect earnings per share of $ 1.32 on sales of $ 6.62 billion.
After a strong rebound during the COVID-19 pandemic, Netflix stock is losing some steam as subscriber growth slows}} and competition in the streaming market intensifies.
As of Friday's $ 497.98 close, Netflix shares have fallen about 8% in the past three months, compared to the index's gains of about 8% over the same period. Next week's earnings report will be critical if the stock is to break this slow cycle and continue any upward movement.
The Los Gatos, CA-based company needs to demonstrate that it is well positioned at a time when Disney & # 39; s (NYSE 🙂 streaming service is getting an overwhelming response from subscribers and additional competitors are slowly making progress.
2. Intel
Chipmaker Intel (NASDAQ 🙂 is another tech giant that will be releasing the earnings this week. The company's Q4 report follows last week's announcement that it is hiring a new CEO at a time when its leadership position is under threat.
Intel said on January 13 that Bob Swan will be replaced by VMware (NYSE 🙂 CEO Pat Gelsinger, who will return to the company he left more than a decade ago.
The Santa Clara, California-based company will report its last quarterly results on Thursday, January 21, after the close. According to analyst consensus, the semiconductor giant is expected to report $ 1.1 per share for a profit of $ 17.46 billion.
But will perhaps take a back seat as investors focus on the direction the new CEO will take to help the company. of a crisis that threatens its leadership in the chip industry. Intel has lagged behind in introducing newer and faster products and has lost some of its biggest customers, such as Apple (NASDAQ :), which has decided to build its own chips.
Intel stock, which closed at $ 57.58 Friday, has underperformed in the current market recovery compared to other chip makers. The stock has hardly changed over the past year, even though the benchmark has risen by about 60% over the same period.
3. Schlumberger
and services giant Schlumberger (NYSE 🙂 will report their fourth quarter earnings on Friday, January 22, prior to opening. Analysts expect an average of $ 0.17 per share on sales of $ 5.23 billion.
Schlumberger operates in more than 120 countries, providing the oil and gas industry with the widest range of products and services from exploration to manufacturing. But her business is in a {{erl-8354 || steep downturn since the pandemic hit the global economy, forcing major oil companies to cut spending to save money.
Despite this uncertain outlook for oil markets, SLB shares have appreciated more than 50% in the past three months in the hope that the successful deployment of vaccines will boost the global economy this year. The stock closed at $ 24.91 on Friday, up from about $ 14 a share in October.
The company's future guidelines may provide some insight into the extent of recovery taking place in the energy markets.
