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Earnings season picks up steam this week as over 400 companies are expected to report, many of them being large cap companies.
The large caps have outperformed over the last few years as money rotated into companies that could withstand all the stresses and pressures of the pandemic.
But not all large caps are created equal to start 2022.
Technology, social media, and cybersecurity are just a few industries which have been hit in the stock sell-off of 2022.
But others have still been outperforming.
What are the earnings charts you should be watching this week?
VF Corporation is a retailer that operates some of the top retail brands, including Vans, North Face and Timberland.
VF Corp has beat 2 out of the last 4 quarters, but it is coming off a miss last quarter.
Why is it a key earnings chart to watch this week?
The retailers have had issues with the supply chain, wage inflation and rising commodity costs. VF Corp is one of the first retailers to report this season so it could set the tone.
Shares have fallen 9.2% year-to-date but VF Corp still isn’t that cheap, with a forward P/E of 21.
How was the holiday season and was there any improvement in the supply chain?
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5 Earnings Charts to Key in On
Earnings season picks up steam this week as over 400 companies are expected to report, many of them being large cap companies.
The large caps have outperformed over the last few years as money rotated into companies that could withstand all the stresses and pressures of the pandemic.
But not all large caps are created equal to start 2022.
Technology, social media, and cybersecurity are just a few industries which have been hit in the stock sell-off of 2022.
But others have still been outperforming.
What are the earnings charts you should be watching this week?
5 Earnings Charts to Key in On
1. Visa (V - Free Report)
Visa has beat every quarter for the last 5 years. In fact, it has actually beat every quarter since its IPO in 2008.
That’s an amazing track record. Just think of all the events, recessions, and “crises” that have happened during that time, including the pandemic.
Visa has the best earnings surprise track record on the Street. By far.
Shares have fallen 17% over the last 6 months and are down 5% in 2022.
But they’re not cheap, with a forward P/E of 29.
Will Visa beat again and will it be enough to turn the shares around?
2. Eastman Chemical Co. (EMN - Free Report)
Eastman Chemical missed last quarter but beat the 4 quarters before that miss.
Chemicals are the building blocks of the economy. As the economy continues to recover from the pandemic, this industry is one to watch.
Shares are down just 1.5% year-to-date, outperforming the S&P 500 during that time.
Eastman Chemical is cheap, with a forward P/E of just 12.5.
It’s also shareholder friendly with a dividend, yielding 2.6%, and a $2.5 billion share repurchase program.
Should you hide out in the chemical makers during the market sell-off?
3. Caterpillar Inc. (CAT - Free Report)
Caterpillar has beat on earnings 6 quarters in a row.
Shares are actually up 3.7% year-to-date while the S&P 500 is down 8.6% during the same time period.
Caterpillar is trading with an attractive forward P/E of just 17.4.
Earnings are expected to rise 18.9% in 2022, after jumping 58% in 2021.
How is Caterpillar handling rising commodity and labor costs in 2022?
4. Chevron (CVX - Free Report)
Chevron has beat just 2 quarters in a row, but the Street doesn’t care as shares have been rising for the last year.
Chevron has gained 46% over the last year, including rising 13.1% in 2022 thanks to rising oil prices, while the S&P 500 has lost 8.6% year-to-date.
It’s still cheap, even after the rally, with a forward P/E of just 12.6.
Investors will also get a juicy dividend, which is currently yielding 4%.
Will Chevron keep its momentum in 2022?
5. VF Corp. (VFC - Free Report)
VF Corporation is a retailer that operates some of the top retail brands, including Vans, North Face and Timberland.
VF Corp has beat 2 out of the last 4 quarters, but it is coming off a miss last quarter.
Why is it a key earnings chart to watch this week?
The retailers have had issues with the supply chain, wage inflation and rising commodity costs. VF Corp is one of the first retailers to report this season so it could set the tone.
Shares have fallen 9.2% year-to-date but VF Corp still isn’t that cheap, with a forward P/E of 21.
How was the holiday season and was there any improvement in the supply chain?