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Third quarter earnings season has finally arrived. The Federal Reserve has started its cutting cycle as well. How will these two things collide over the next few weeks?
As always, earnings season “officially” begins with the big banks like JPMorgan Chase. But there is a handful of other large cap companies in key industries like the transports, manufacturing and construction, and restaurants reporting this week that traders should keep an eye on as well.
Some of these companies have a nice earnings surprise track record and haven’t missed in nearly 2 years. Others have been struggling on the earnings surprise front.
Will these companies begin to give guidance for 2025 on this conference call? Or are economic conditions too uncertain to see that far into the future?
Fastental is a barometer for manufacturing in the United States. It has only missed twice in the last 5 years: once in early 2020 before the global economy shut down due to COVID and the second time was earlier this year.
Shares of Fastenal are up 8.3% year-to-date but are off recent all-time highs. It’s not cheap, with a forward P/E of 35.
Manufacturing has been in a recession for 2 years but Fastenal’s shares have not. But earnings estimates are now being cut for 2025 and 2026.
Is Fastenal too pricey on a P/E basis heading into this earnings report?
Domino’s Pizza has beat on earnings 7 quarters in a row. It’s last miss was back in 2022. That’s an impressive earnings surprise streak.
Shares of Domino’s Pizza are down on the year, falling 0.3% year-to-date after plunging 16.7% the last 3 months. Domino’s Pizza isn’t cheap. It trades with a forward P/E of 25.3.
Should investors have Domino’s Pizza on their watch list?
JPMorgan Chase has a great earnings surprise track record with 8 earnings beats in a row. It’s last miss was in 2022.
Shares of JPMorgan Chase have rallied in 2024 and were at new all-time highs. They have pulled back from that level now, but are still up 23.9% year-to-date.
JPMorgan Chase trades with a forward P/E of 12.6 and pays a dividend yielding 2.4%.
Will this week’s earnings report be a catalyst for the shares of JPMorgan Chase to hit yet another round of new highs?
Bank of America has beat 8 quarters in a row. It also has only missed three times in the last five years which is impressive as that includes the pandemic.
Shares of Bank of America are up 18.6% year-to-date but are not near all-time highs which were last hit in early 2022. Bank of America trades with a forward P/E of 12.3 and pays a dividend, yielding 2.6%.
Berkshire Hathaway, a large shareholder, has been selling shares of Bank of America in recent months.
Is this a buying, or selling, opportunity in the stock?
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5 Stocks to Kick-Off Q3 Earnings Season
Third quarter earnings season has finally arrived. The Federal Reserve has started its cutting cycle as well. How will these two things collide over the next few weeks?
As always, earnings season “officially” begins with the big banks like JPMorgan Chase. But there is a handful of other large cap companies in key industries like the transports, manufacturing and construction, and restaurants reporting this week that traders should keep an eye on as well.
Some of these companies have a nice earnings surprise track record and haven’t missed in nearly 2 years. Others have been struggling on the earnings surprise front.
Will these companies begin to give guidance for 2025 on this conference call? Or are economic conditions too uncertain to see that far into the future?
5 Stocks to Kick-Off Q3 Earnings Season
1. Fastenal Co. (FAST - Free Report)
Fastental is a barometer for manufacturing in the United States. It has only missed twice in the last 5 years: once in early 2020 before the global economy shut down due to COVID and the second time was earlier this year.
Shares of Fastenal are up 8.3% year-to-date but are off recent all-time highs. It’s not cheap, with a forward P/E of 35.
Manufacturing has been in a recession for 2 years but Fastenal’s shares have not. But earnings estimates are now being cut for 2025 and 2026.
Is Fastenal too pricey on a P/E basis heading into this earnings report?
2. Delta Air Lines, Inc. (DAL - Free Report)
Delta Air Lines is coming off an earnings miss last quarter but that was the company’s first miss in the last 5 quarters.
Shares of Delta Air Lines are up 25.8% year-to-date. It’s still cheap with a forward P/E of just 8.
Should investors consider an airline like Delta Air Lines this earnings season as the Fed cuts rates?
3. Domino’s Pizza, Inc. (DPZ - Free Report)
Domino’s Pizza has beat on earnings 7 quarters in a row. It’s last miss was back in 2022. That’s an impressive earnings surprise streak.
Shares of Domino’s Pizza are down on the year, falling 0.3% year-to-date after plunging 16.7% the last 3 months. Domino’s Pizza isn’t cheap. It trades with a forward P/E of 25.3.
Should investors have Domino’s Pizza on their watch list?
4. JPMorgan Chase & Co. (JPM - Free Report)
JPMorgan Chase has a great earnings surprise track record with 8 earnings beats in a row. It’s last miss was in 2022.
Shares of JPMorgan Chase have rallied in 2024 and were at new all-time highs. They have pulled back from that level now, but are still up 23.9% year-to-date.
JPMorgan Chase trades with a forward P/E of 12.6 and pays a dividend yielding 2.4%.
Will this week’s earnings report be a catalyst for the shares of JPMorgan Chase to hit yet another round of new highs?
5. Bank of America Corp. (BAC - Free Report)
Bank of America has beat 8 quarters in a row. It also has only missed three times in the last five years which is impressive as that includes the pandemic.
Shares of Bank of America are up 18.6% year-to-date but are not near all-time highs which were last hit in early 2022. Bank of America trades with a forward P/E of 12.3 and pays a dividend, yielding 2.6%.
Berkshire Hathaway, a large shareholder, has been selling shares of Bank of America in recent months.
Is this a buying, or selling, opportunity in the stock?