As some of the largest US companies report their quarterly results in the coming week, investors will be looking for signs of strength following the largest weekly stock sell-off in the past two years.
Over the next five days, about a third of the 30 megacap companies will release their most recent figures along with their outlook for the remainder of this year, including aerospace and defense giants. Boeing (NYSE:) and heavy machinery giant Caterpillar (NYSE:).
These gains will be released in the wake of the Index experiencing its worst weekly performance since March 2020 amid concerns that impending rising interest rates will not. justify the skyrocketing valuations of some tech giants.
During this pivotal week for the fourth quarter earnings season, we will focus on three megacaps whose earnings could help clarify whether they are still benefiting from the pandemic-driven surge in demand that has sent their stocks to record highs. prices in past months:
1. Tesla
Electric vehicle manufacturer Tesla (NASDAQ:) will report its fourth quarter results on Wednesday, January 26 after the market closes. Analysts expect earnings of $2.26 per share on revenue of $16.99 billion.
The Austin, Texas-based EV manufacturer reported earlier this month that it had shipped 308,600 vehicles worldwide in the fourth quarter, breaking the previous record. Better-than-expected deliveries pushed Teslas to over 936,000 for the year, an increase of about 87% from 2020 deliveries.
This impressive performance showed that the company's CEO , Elon Musk, manages to solve the supply chain problems that hurt traditional automakers. are shares of the slump that has put pressure on high-growth technology names since the beginning of this year. Tesla shares are down about 11% since the start of 2022, closing at $943.90 on Friday. The stock rose to a record high of $1243.49 in November 2021.
2. Apple
Apple (NASDAQ:), the maker of the popular and iconic iPhone, as well as computers and smart wearables, is expected to release its fiscal 2022 results on Thursday, January 27. after the market closes. Analysts, on average, expect the company to make $1.89 and share gains on $118.74 billion in revenue.
Investors are likely to focus on the company's ability to meet strong demand for its products amid supply chain hurdles that hinder sales of the Cupertino, California-based company in the . CEO Tim Cook warned in October that the semiconductor shortage is affecting "virtually" all of the company's products.
During the Christmas season, Apple's sales were predicted to hit an all-time high, fueled by the introduction of new watches, iPads, Mac computers and other items. Friday after a decline of about 8% this month. But that performance outperforms the tech-heavy NASDAQ 100s, which fell 12% over the same period.
3. Chevron
Chevron (NYSE:) will report its fourth quarter results on Friday, January 28 before the market opens. According to consensus forecasts, the US and major countries are expected to achieve EPS of $3.11 on revenue of $44.59 billion.
In its latest update, the San Ramon, California-based integrated energy, chemicals and petroleum company said it plans to use windfall gains to facilitate share buybacks as rising energy prices boost cash flows. Chevron is considering expanding its buyback program after rising natural gas prices and oil refining yields pushed free cash flow to an all-time high in the .
were early 2020, and the International Energy Agency said last week that global oil demand will surpass pre-pandemic levels this year. Chevron shares closed at $126.91 Friday, after a 26% rise in the past six months
