Many consider this week as the most critical of the earnings season. Dozens of S&P 500 companies will report including most FAANG stocks, Microsoft, Shopify and oil majors ExxonMobil and Chevron.
If you want to know what the economy looks like, we will be told this week.
These five companies have mixed earnings records, with some perfect, and others missing significantly over the last few quarters.
But all eyes are on them because they are in the popular technology, social media, manufacturing and energy industries. And some are pandemic favorites.
Will they be surprised by this week’s earnings?
5 Intriguing Profit Charts
1. ServiceNow, Inc. (NOW – Free Report)
ServiceNow hasn’t missed a beat in 5 years. Very good earnings track record.
Shares of ServiceNow are down 42% year-to-date but it’s not cheap. ServiceNow trades at a forward P/E of 49.
However, revenues are expected to increase by 23% this year and another 26% next year.
Is this a ServiceNow buying opportunity?
2. Caterpillar Inc. (CAT – Free Report)
Caterpillar has beaten earnings for 9 quarters in a row. Shares have outperformed this year, down just 5.8% year-to-date.
Caterpillar shares are cheap with a forward P/E of just 14.9.
It also pays a dividend, currently yielding 2.5%.
Should investors be looking at equipment manufacturers like Caterpillar this year?
3. Shopify (SHOP – Free Report)
Shopify was a pandemic darling but that seems to be over now. It missed the big two quarters in a row.
Shares of Shopify have fallen 78% year-to-date. are they cheap
Shopify has no P/E as earnings are expected to be negative this year. It also does not pay a dividend.
How much less is Shopify?
4. Pinterest (PINs – Free Report)
Pinterest was also a big winner in the pandemic as people turned to their phones for connection, and entertainment, during the onset of the pandemic.
Pinterest was a big miss last quarter but has a nice 5-year surprise record with only 3 misses since 2019.
Pinterest shares are down 38% year-to-date but not cheap. Pinterest has a forward P/E of 40.
Should Pinterest be on your watch list?
5. ExxonMobil Corp. (XOM – Free Report)
ExxonMobil has lost 3 of the last 4 quarters. The energy sector has been the best performing sector this year. No wonder, then, that ExxonMobil shares are up 73% this year.
ExxonMobil is cheap, with a forward P/E of 8.
It also pays a dividend, currently yielding 3.3%.
Is it too late to buy ExxonMobil after the big rally?