Here's your weekly Investing Action Plan: what you need to know as an investor for the coming week. Top tech stocks start reporting Q3 results as earnings season ramps up, including Netflix (NFLX), Intel (INTC), Texas Instruments (TXN) and Tesla (TSLA). Restaurant leader Chipotle (CMG) is also due, and Lockheed Martin (LMT) will be the first aerospace/defense stock to report in this cycle.
XStocks To Watch
Several top tech stocks are in bases but could also soon form handles that offer earlier entries. Apple (AAPL) is consolidating with a 138.08 buy point, but a handle would have 125.28 entry. Microsoft (MSFT) is in a cup base with 232.96 buy point but a handle would offer a 225.31 entry. Adobe (ADBE) is consolidating with a 536.98 buy point but a handle entry would be 519.70. Amazon (AMZN) is in a cup base with a 3,552.35 buy point while a handle would put the entry at 3,496.34. JD.com (JD) is also in a cup base with an 86.68 buy point with a handle setting up an 85.49 entry
Street Expects Netflix Earnings Jump
The streaming video leader reports late Tuesday. Analysts expect EPS to jump 45% to $2.13 with sales up 22% to $6.38 billion in the September quarter. Netflix forecast adding 2.5 million new subscribers worldwide in Q3, while Wall Street is modeling 3.6 million new subscribers. Netflix ended Q2 with nearly 193 million subscribers and has benefited from the home-entertainment boom during the Covid-19 pandemic.
TI, Intel Lead Chip Earnings
Texas Instruments plans to post results late Tuesday. Analysts expect EPS of $1.27, down 15%, on sales of $3.43 billion, down 9%. It would mark the sixth consecutive quarter of declining earnings as TI navigates the chip-cycle downturn. Intel's earnings are due late Thursday, and EPS is seen falling 23% to $1.10 while sales dip 5% to $18.22 billion. That would be the first decline in earnings in over four years. Other semiconductor stocks with earnings due in the week ahead include Entegris (ENTG), Lam Research (LRCX), STMicroelectronics (STM), Teradyne (TER) and Xilinx (XLNX).
Tesla Earnings To Surge
The maker of electric cars reports late Wednesday. Wall Street sees EPS jumping 49% to 55 cents as revenue grows 30% to $8.2 billion. Tesla delivered 139,300 vehicles globally in Q3, a quarterly record, surpassing expectations and driven by demand for the mass-market Model 3 sedan and new Model Y crossover. China was key to the strong Q3. But Tesla faces rising competition in the luxury segment from European automakers, and in the mass-market segment from Chinese upstarts. Analysts will watch Tesla's margins and any update on its 2020 delivery target of 500,000 vehicles.
Chipotle Reports Amid Digital Push
The Mexican fast-casual chain reports late Wednesday. Wall Street expects EPS to fall 12% to $3.38, as revenue climbs 13% to $1.59 billion. Chipotle reports as it hires more people to handle digital-order and delivery demand and opens more drive-thru 'Chipotlanes.' Analysts have said restaurants geared more toward to-go orders would do better than others during the pandemic. But they also have questions about how much more Chipotle's stock has room to rise. Shares have formed a flat base with a 1,384.56 buy point.
More Airline Earnings Ahead
American Airlines (AAL) and Southwest (LUV) report early Thursday, as executives predict a long and bumpy recovery from the coronavirus pandemic. Wall Street expects American to swing to a per-share loss of $5.62 from a year-ago profit of $1.62 a share, as revenue tumbles 76% to $2.8 billion. Southwest is seen losing $2.44 per share vs. EPS of $1.23 a year ago, with revenue down 70% to $1.68 billion.
Lockheed Due Amid Foreign Sales Buzz
The top Pentagon contractor will report early Tuesday. Analysts see EPS rising 7.2% to $6.07 with revenue up 7% to $16.34 billion. The aeronautics unit is Lockheed's biggest moneymaker with its F-35, but its missile division has seen faster growth recently. Lockheed's earnings come as hypersonic missiles get closer to test flights, while diplomatic breakthroughs in the Middle East could open up more F-35 sales to U.S. allies there.
Biogen Profit To Drop
Early Wednesday, the biotech is slated to post a rare decline in earnings and sales. Analysts see EPS falling 12% to $8.09 as sales drop 7% to $3.35 billion. That would mark Biogen's (BIIB) first sales decline in at least five years, and its first EPS decline since Q2 2017. The company awaits a key FDA committee review on Nov. 6 for its Alzheimer's treatment candidate aducanumab.
Other Earnings
- Snap (SNAP) reports earnings after the close Tuesday. Wall Street expects per-share losses to widen to 18 cents from 4 cents a year ago, while revenue climbs 23% to $550 million.
- Winnebago (WGO) reports fiscal Q4 results early Wednesday. The RV maker should see EPS slide 11% to 90 cents despite sales increasing 32% to $699.4 million.
- American Express (AXP) reports early next Friday. Analysts see EPS falling 37% to $1.31 as revenue drops 21% to $8.66 billion.
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