From Alcoa to Wells Fargo: Prepare for Q2 Earnings Season

While we didn’t get many fireworks last week, I do expect that July will end with a bang. After all, second-quarter earnings season is just around the corner, and it’s shaping up to be a strong one. According to FactSet, analysts expect the S&P 500 will post 6.6% annual earnings growth and 4.9% annual revenue growth. This is much stronger than in previous quarters.

So you can bet that it is going to spur some big swings in the market. To prepare for this, let’s preview some of the biggest earnings announcements coming at us over the next few weeks. I’ll provide what the analyst community’s expectations are for each stock plus my take on whether the upcoming earnings announcement is a buying opportunity.

<td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Bank of America Corporation
 Money Center Banks | USA | 244.39B] offsetx=[100] offsety=[-220] delay=[0]”>BAC <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 The Dow Chemical Company
 Chemicals – Major Diversified | USA | 80.80B] offsetx=[100] offsety=[0] delay=[0]”>DOW <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Alphabet Inc.
 Internet Information Providers | USA | 665.24B] offsetx=[100] offsety=[0] delay=[0]”>GOOGL <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Intuitive Surgical, Inc.
 Medical Appliances & Equipment | USA | 35.06B] offsetx=[100] offsety=[-220] delay=[0]”>ISRG <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Johnson & Johnson
 Drug Manufacturers – Major | USA | 359.22B] offsetx=[100] offsety=[-220] delay=[0]”>JNJ <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Microsoft Corporation
 Business Software & Services | USA | 553.40B] offsetx=[100] offsety=[-220] delay=[0]”>MSFT <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Northrop Grumman Corporation
 Aerospace/Defense – Major Diversified | USA | 46.32B] offsetx=[100] offsety=[-220] delay=[0]”>NOC <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Philip Morris International Inc.
 Cigarettes | USA | 183.92B] offsetx=[100] offsety=[0] delay=[0]”>PM <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 UnitedHealth Group Incorporated
 Health Care Plans | USA | 181.17B] offsetx=[100] offsety=[-220] delay=[0]”>UNH <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Visa Inc.
 Credit Services | USA | 223.57B] offsetx=[100] offsety=[-220] delay=[0]”>V
The Good
Symbol Company Name Earnings Date Est. Sales Growth Est. Earnings Growth My Recommendation
AA Alcoa Inc. 19-Jul N/A 293% Buy
Bank of America 18-Jul 4.9% 4.9% Strong Buy
Dow Chemical 27-Jul 13.8% 5.3% Strong Buy
Alphabet 24-Jul 19.3% -2.0% Buy
Intuitive Surgical 20-Jul 7.6% 2.8% Strong Buy
Johnson & Johnson 18-Jul 2.6% 3.4% Buy
Microsoft 20-Jul 7.2% 2.9% Buy
NFLX Netflix 17-Jul 31.1% 77.8% Strong Buy
Northrop Grumman 26-Jul 3.5% 0.4% Buy
Philip Morris 20-Jul 6.3% 7.0% Buy
UnitedHealth Group 18-Jul 7.8% 21.4% Buy
Visa 20-Jul 20.2% 17.4% Buy

<td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Chevron Corporation
 Major Integrated Oil & Gas | USA | 198.34B] offsetx=[100] offsety=[-220] delay=[0]”>CVX <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 The Hershey Company
 Confectioners | USA | 22.28B] offsetx=[100] offsety=[0] delay=[0]”>HSY <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Eli Lilly and Company
 Drug Manufacturers – Major | USA | 93.37B] offsetx=[100] offsety=[-220] delay=[0]”>LLY <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Union Pacific Corporation
 Railroads | USA | 88.58B] offsetx=[100] offsety=[-220] delay=[0]”>UNP
The Bad
Symbol Company Name Earnings Date Est. Sales Growth Est. Earnings Growth My Recommendation
CMCSA Comcast 27-Jul 8.2% 14.3% Hold
Chevron 28-Jul 13.7% 171.4% Hold
Hershey 26-Jul 1.2% 5.9% Hold
Eli Lilly 25-Jul 3.7% 22.1% Hold
Union Pacific 20-Jul 8.8% 18.8% Hold

<td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Ford Motor Company
 Auto Manufacturers – Major | USA | 46.16B] offsetx=[100] offsety=[0] delay=[0]”>F <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 General Electric Company
 Diversified Machinery | USA | 239.94B] offsetx=[100] offsety=[0] delay=[0]”>GE <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Gilead Sciences, Inc.
 Biotechnology | USA | 93.02B] offsetx=[100] offsety=[0] delay=[0]”>GILD <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 The Coca-Cola Company
 Beverages – Soft Drinks | USA | 191.97B] offsetx=[100] offsety=[0] delay=[0]”>KO <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 PPG Industries, Inc.
 Specialty Chemicals | USA | 28.82B] offsetx=[100] offsety=[0] delay=[0]”>PPG <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 AT&T Inc.
 Telecom Services – Domestic | USA | 232.16B] offsetx=[100] offsety=[-220] delay=[0]”>T <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 United Parcel Service, Inc.
 Air Delivery & Freight Services | USA | 97.07B] offsetx=[100] offsety=[0] delay=[0]”>UPS <td title="cssbody=[tabchrtbdy] cssheader=[tabchrthdr] body=[
 Wells Fargo & Company
 Money Center Banks | USA | 276.79B] offsetx=[100] offsety=[0] delay=[0]”>WFC
The Ugly
Symbol Company Name Earnings Date Est. Sales Growth Est. Earnings Growth My Recommendation
Ford Motors 27-Jul 0.2% -15.4% Strong Sell
General Electric 21-Jul -13.4% N/A Sell
Gilead Sciences 26-Jul -18.9% -30.8% Strong Sell
IBM IBM Corp. 18-Jul -3.8% -6.8% Sell
Coca-Cola 26-Jul -16.2% -3.3% Sell
PPG Industries 20-Jul -3.2% 3.4% Sell
SBUX Starbucks 27-Jul 9.8% 12.2% Sell
AT&T Inc. 25-Jul -1.6% 2.8% Strong Sell
United Parcel Service 27-Jul 5.8% 2.1% Sell
VZ Verizon Wireless 27-Jul -2.1% 1.1% Strong Sell
Wells Fargo 14-Jul 1.4% 0.0% Sell

Sincerely,

Louis Navellier

Louis Navellier

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