Back to top

5 Must See Earnings Charts

Read MoreHide Full Article

Fourth quarter earnings season is off and running but this week will still be fairly quiet as the big, regional banks reports earnings and a smattering of other names from various key industries such as the industrials, energy and the transports.

If you want insight as to what is happening in the economy in industries outside of tech, this week we’ll start to get some answers.

The key will be in 2023 guidance and not in the Q4 report. But will it be good news, or bad?

And will some companies even be able to give guidance? Some of the home builders have provided only Q1 gross margin guidance because there is so much uncertainty about the spring season.

Here are 5 must-see earnings charts this week which may provide some insight at what is going on in the economy.

5 Must See Earnings Charts

1.    J.B. Hunt Transport Service, Inc. (JBHT - Free Report)

J.B. Hunt is a trucking company which has put together a strong earnings surprise track record. It has beat 8 quarters in a row.

Shares of J.B. Hunt are off their 2022 highs, falling 12.5% in the last year. It has a forward P/E of 18.4, so it’s not that cheap. That’s near the average of the S&P 500.

The transports are a key component of the US economy and can often signal a recession is approaching.

Will J.B. Hunt sound the alarm this quarter?

2.    Procter & Gamble (PG - Free Report)

Procter & Gamble has an excellent earnings surprise track record, marred only by one miss in the last 5 years. That was in 2022.

Investors have tried to hide out in the consumer giant, as Procter & Gamble pays a dividend currently yielding 2.4%.

Shares of Procter & Gamble are down only 6.3% over the last year but they’re far from cheap. It trades with a forward P/E of 25.9.

Is Procter & Gamble too pricey for this market now?

3.    Fastenal (FAST - Free Report)

Fastenal, a bellwether company for the manufacturing and construction industries, has a great earnings surprise track record. It has beat 11 quarters in a row.

But shares of Fastenal peaked at the end of 2021 and have declined 17.2% over the last year.

Fastenal still isn’t cheap. It trades with a forward P/E of 25.5 and earnings are only expected to rise 2% in 2023.

Is there more selling to come in Fastenal in 2023?

4.    SLB (SLB - Free Report)

SLB, formerly known as Schlumberger, hasn’t missed on earnings in 5 years. That’s impressive, especially for an energy company as the energy industry was volatile during the start of the pandemic.

Shares of SLB are also up in the last year, gaining 53.4% and hitting new 52-week highs heading into this report. But they’re still attractively valued, with a forward P/E of 19.

Earnings are expected to rise another 40% in 2023, with one analyst raising their estimate for the year in the last week. That’s bullish.

Even with the big rally in SLB last year, is there still further upside ahead?

5.    Ally Financial (ALLY - Free Report)

Ally Financial, the digital bank, has missed two quarters in a row.

The analysts are bearish on the company for 2023 with 1 estimate being raised, but 3 being lowered for the year in the last week. Earnings are expected to fall 41.2% in 2023.

Last quarter, the bank warned it had to put more money into its loan loss reserves for its auto loans.

As a result, shares of Ally Financial have taken a tumble in the last year, falling 41.2%. It is cheap, with a forward P/E of 7.7 and a P/B ratio of 0.8. Financials are considered cheap with a P/B ratio at 1.0 and Ally Financial is now under that.

Is it too soon to buy Ally Financial?

Published in