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Earnings and Tariffs: This Week's 5 Must Watch Stocks

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Did you know that the first quarter earnings season kicks off this week? Most people are so consumed with what is happening with the tariffs, that they’ve forgotten that we have an earnings season starting.

Like with the first reporting season after the COVID pandemic started in March 2020, this earnings season will be important to see what impacts the companies are seeing, if any, from Trump Administration’s new tariff regime.

Should You Care About the Banks?

We usually tune into the big bank reports in the first week of earnings, but this week we will be looking at other industries: such as airlines, wine and spirits, used cars, and manufacturing.

It’s a new world right now. The Street won’t care about the actual first quarter results as those were “Before Liberation Day.” They will be looking at any forward-looking guidance because the guidance reflects “After Liberation Day.”

Be prepared for volatility.

5 Must Watch Earnings Charts This Week

1. Delta Air Lines, Inc. (DAL - Free Report)

Delta Air Lines has beat 2 out of the last 4 quarters, including last quarter. But fears about the global economy, and consumer demand, has crushed the stock. Delta Air Lines has fallen 32.7% over the last month.

Delta Air Lines is now dirt cheap, with a forward price-to-earnings (P/E) of just 5.5. A P/E under 10 usually indicates a company is extremely cheap.

Is Delta Air Lines a value trap?

2. Constellation Brands, Inc. (STZ - Free Report)

Constellation Brands missed last quarter but prior to that miss, it had beat 7 quarters in a row. Shares of Constellation Brands, the maker of beer, wine, and spirits, are down 8.2% in the last month.

It’s also cheap. Constellation Brands now has a forward P/E of 12.6.

Will Constellation Brands turn it around and beat this quarter?

3. CarMax, Inc. (KMX - Free Report)

CarMax is coming off a big, 30% earnings surprise last quarter. But prior to that beat, the largest used car retailer had missed three quarters in a row.

Shares of CarMax have been bucking the negative trend, and are down only 4.4% over the last month. It’s not that cheap, however. CarMax has a forward P/E of 19.5.

Will CarMax be a beneficiary of the tariffs on foreign cars?

4. Fastenal Co. (FAST - Free Report)

Fastenal is coming off a rare earnings miss last quarter. That was only the second earnings miss over the last 5 years.

Shares of Fastenal, a bellwether for manufacturing, are down 11% in the last month. It’s not cheap. Fastenal trades with a forward P/E of 33.5. A P/E over 30 is seen as being expensive.

What will Fastenal tell us about the tariffs and impacts on the manufacturing and construction industries?

5. JPMorgan Chase & Co. (JPM - Free Report)

JPMorgan Chase has a great earnings surprise track record. This big bank has beat 10 quarters in a row.

Shares of JPMorgan Chase finally came off the recent all-time highs, falling 10.5% in the last month.

JPMorgan Chase is still attractively priced for a bank, with a price-to-book (P/B) ratio of just 1.8. A P/B ratio under 2.0, for a bank, is considered attractive.

What are the big banks, like JPMorgan Chase, seeing in this economy right now?

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