After seeing strong earnings from some of the largest US companies in recent weeks, investors are now turning their focus to macroeconomic fundamentals.
Stocks rebounded on Friday after much weaker than expected for April sparked speculation that the Federal Reserve could keep interest rates lower for an extended period if the country's economic recovery does not accelerate. That outcome will enable stock valuations that are quite rich after a vigorous rally over the past year.
In the wake of job releases, every sector pushed it higher. competed with and tied for first place. The Russell 1000 Value Index and its growth counterpart both ended up 0.8% higher on Friday, after value stocks outperformed every day for the past week.
Below is our list of three major earnings announcements scheduled for next week that could provide some insight into how companies plan to shift their strategies as the US moves towards a hoped-for full reopening.
1. Disney
The Walt Disney Company (NYSE 🙂 reports revenue for the second quarter of fiscal year 2021 after the closing clock on Thursday, May 13. Analysts expect $ 15.86 billion in revenue and $ 0.27 earnings per share.
If analysts' predictions are correct, a profitable second quarter will be an impressive turnaround for the House of Mouse, which took place during the pandemic when its major travel companies – theme parks, cruises and hotels – faced closures and capacity constraints.
With the economic reopening and parks slowly picking up again, investors will also focus on growing subscriber numbers in the Disney + streaming service, which is taking advantage of the stay-at-home environment.
Shares of the entertainment giant are up 75% in the past year, after a decline of about 40% in March 2020. This strong rebound shows investor confidence in the company's business model and its ability to to thrive when the economy reopens. Shares closed at $ 184.84 Friday
2. Airbnb
reporting quarterly. Analysts forecast a loss of $ 1.05 per share for the period on revenues of $ 718 million.
Results from the San Francisco-based company could show that the coronavirus pandemic continued to curb demand for travel after an increase in cases last winter led to new lockdowns and restrictions and hurdles the rollout of vaccines worldwide. received.
Airbnb was one of the companies during the pandemic, nearly scraping its IPO plans in December as demand for its rental properties plummeted. In April last year, room bookings and experiences were down 72%.
But the accelerated introduction of vaccines in the developed world should increase bookings during the summer, prompting some analysts to predict that the worst could already be. over for the travel giant. Airbnb stock is up 3% this year, closing at $ 151.21 on Friday.
3. Simon Property
Simon Property Group (NYSE :), America & # 39; s largest shopping center operator, will close on Tuesday, May 11, after the market, report its first quarter earnings. Analysts predict earnings per share of $ 2.27 on sales of $ 1.1 billion.
The company's stock turned out to be a major turnaround during the pandemic as they rebounded sharply after the March dip, when investors became extremely bearish about shopping center owners. The stock closed at $ 124.94 on Friday, up more than 119% over the past year.
Investors hope that the rapid reopening of the US economy after the successful rollout of vaccines will bring customers back to shopping malls and. Jefferies upgraded the stock to "buy" from "hold" last month, saying the real estate firm, with manageable debt, will benefit from pent-up consumer demand.
