Major Earnings on Deck the Week Ahead for DJIA and S&P Stocks
The week ahead will be the official flood gate opening for earnings season. We have a very large portion of the S&P 500 Index reporting fourth-quarter earnings, and we have many Dow Jones Industrial Average stocks reporting as well. 24/7 Wall St. has compiled a brief and condensed earnings calendar using Thomson Reuters estimates, and we have added color on select earnings ahead of the formal calendar below. As a reminder, the stock and bond markets will be closed on Monday to observe Martin Luther King Day.
TUESDAY, JAN. 22
E.I. DuPont de Nemours & Co. (NYSE: DD) $0.07 earnings per share: This marks the chemical giant's debut and will be a DJIA stock to watch, with that high 3.7% dividend yield. At $46.60, the 52-week range is $41.67 to $53.98, and the consensus price target is $50.17 as of now.
Google Inc. (NASDAQ: GOOG) $10.62 EPS: The first Internet giant is on deck, and the stock remains about 10% off of its highs. Look for this to be the benchmark for online ad marketing dollars for Facebook, Yahoo!, AOL and others. With shares around $709, the consensus target is almost $800 for Google.
International Business Machines Corp. (NYSE: IBM) $5.25 EPS: This DJIA component has lagged as a DJIA stock, although the IT-spending market lag that has been seen should start to abate in 2013. The stock is still almost 10% less than its highs, and the $195 price of today compares to a consensus target of $222 on the stock.
Johnson & Johnson (NYSE: JNJ) $1.17 EPS: The DJIA stock is now right at 52-week highs around $73, and we would warn that the consensus target of $76.18 does not leave much implied upside here, unless analysts begin to lift their targets.
Verizon Communications Inc. (NYSE: VZ) $0.52 EPS: We already have seen smartphone sales data, so the only issue is how its earnings and sales will pan out. At $442.35, this is down handily from the 52-week high of $48.77 and still has decent upside to the $46.40 consensus price target. That 5% yield is attractive too.
WEDNESDAY, JAN. 23
Amgen Inc. (NASDAQ: AMGN) $1.44 EPS: This is the first major biotech to report, and we would note that while we called it fully valued going into 2013, its shares have pulled back substantially from the peak above $90. At $82, its consensus price target is $94.35.
Apple Inc. (NASDAQ: AAPL) $13.45: Everyone is watching because of the breakdown and sentiment change. Analysts have been cutting their targets, and some downgrades have been seen. If the news is not well received, there is still $60 to $75 per share in dead air space on the chart.
McDonald's Corp. (NYSE: MCD) $1.33 EPS: This is not just back above $90, but it is back over $92 after a really poor 2012. The price target is $97.40 and the 52-week high is $102.22.
Netflix Inc. (NASDAQ: NFLX) -$0.12 EPS: Netflix has almost doubled from its lows. Perhaps the most bearish analyst has been Janney Capital, and the team just raised it to Buy with a $129 fair value. Now that it has resecured the Disney relationship, the CEO is under less pressure.
SanDisk Corp. (NASDAQ: SNDK) $0.72 EPS: This king of Flash memory is back up close to a 52-week high again and up more than 50% from the worrying days of 2012 when the stock was closing in on $30. At $48.41, the 52-week high is $53.08, and the consensus target price is $51.33.
THURSDAY, JAN. 24
3M Co. (NYSE: MMM) $1.41 EPS: After strong GE earnings, the expectations will be positive for this DJIA stock as well. It is trading at $98.20, and the 52-week high is only $98.50 and the consensus price target is almost $103.
AT&T Inc. (NYSE: T) $0.47 EPS: We already have seen smartphone sales from this DJIA stock, and we have seen the disclosed big charges now too. It is at $33.28, and the 52-week range is $29.02 to $38.58 and the consensus price target is $36.52. That 5.4% yield makes it the king of DJIA stock dividend payers.
Bristol-Myers Squibb Co. (NYSE: BMY) $0.42 EPS: The $34.25 price compares to a 52-week range of $30.64 to $36.34, and the one-year target is $34.33.
Celgene Corp. (NASDAQ: CELG) $1.31 EPS: This is the second big biotech to share earnings results, and at $99 it is just under the 52-week high of $99.75. The consensus target price of $97.75 is also under the share price.
J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) $0.70 EPS: This is the first of the truckers to report, and the $62.55 price is close to the 52-week high of $63.22 and just over the consensus price target of $62.27.
Juniper Networks Inc. (NYSE: JNPR) $0.22 EPS: Juniper is ALWAYS used as a bogey for how Cisco's business is doing. Whether or not it should is up for debate. It is at $21.21, and its 52-week high is $25.04 and the consensus price target is only $19.00 on this networking giant.
Microsoft Corp. (NASDAQ: MSFT) $0.75 EPS: This is supposedly the DJIA stock with the most upside, if the analysts are right. The problem is that the flagship Windows 8 sales have lagged as the move away from PCs has been undeniable. Still, that 3.4% yield is a help. Trading at $27.20, it has a 52-week range of $26.26 to $32.95, and the consensus price target is $33.79. Does it seem likely that Microsoft shares will rise to a new 52-week high?
Southwest Airlines Co. (NYSE: LUV) $0.07 EPS: shares are closing in on a 52-week high and the value remains favorable for airlines.
Starbucks Corp. (NASDAQ: SBUX) $0.57 EPS: At $48.40, the 52-week range is $30.99 to $53.08 and the consensus target is only $51.33. Starbucks has performed very well up until the valuation became stretched.
FRIDAY, JAN. 25
Honeywell International Inc. (NYSE: HON) $1.10 EPS: Expectations for this DJIA stock will be elevated after GE's strong numbers. It is at $67.40, and the 52-week high was hit Friday at$67.78. The consensus price target is $71.30 on the conglomerate.
Kimberly Clark Corp. (NYSE: KMB) $ 1.36 EPS: Trading at $86.32, it has a 52-week range of $70.50 to $88.25, and the consensus target price is $87.27. It feels priced for close to perfection, but that 3.5% dividend yield is attractive.
Procter & Gamble Co. (NYSE: PG) $1.11 EPS: While activist pressure was there on this DJIA stock, P&G is back up to about $70, and the 52-week range is $59.07 to $70.99. What is interesting is that the consensus price target is $74.79 for the consumer products behemoth.
All estimates and price targets are from Thomson Reuters, but some of these estimates will change before the formal earnings reports. We will be offering more detailed preview on some of these key stocks ahead of the reports.
Filed under: 24/7 Wall St. Wire, Calendar, Earnings Tagged: AAPL, AMGN, BMY, CELG, DD, featured, GOOG, HON, IBM, JBHT, JNJ, JNPR, KMB, LUV, MCD, MMM, MSFT, NFLX, PG, SBUX, SNDK, T, VZ