The earnings season is in full flow as we kick off the week with earnings from big names like Netflix and United Airlines. Most of the big names are expecting a positive earnings report with some even hitting 52-week highs in anticipation of the upcoming earnings.
The S&P is up 0.5% while the Dow is about to hit the 1% mark, reflecting the positive sentiment among the US traders. We decided to compile a list of the top names scheduled to announce their earnings this week, looking at what was driving the optimism behind their earnings.
To come up with the list of 10 stocks expected to post impressive earnings this week, we only considered stocks with a market cap of over $30 billion that are scheduled to announce their earnings this week.
10. Netflix, Inc. (NASDAQ:NFLX)
Netflix, Inc. is an entertainment services provider that presents documentaries, games, movies, and TV series on its streaming platform. It is easily the most popular streaming brand in the world, boasting around 283 million subscribers. Being a streaming giant, Netflix holds 20% of the market share in the industry.
NFLX exceeded estimates in the third quarter and is now projected to generate revenue worth $10.13 billion and earnings of $4.21 in Q4. The company’s expected growth rate for 2025 is 12.1% with $43.5 billion estimated revenue, showing how the company continues to dominate streaming. Its profit margins are projected to grow by 28% as well, which should help the company significantly improve its bottom line.
Although the stock price was down by 7% in the past month, it started recovering in the past five trading days in anticipation of the upcoming earnings. The share price was up over 70% in the previous year. Based on estimates and the company’s potential for growth, it is an ideal choice for investors looking to bet on the company’s earnings.
9. The Procter & Gamble Company (NYSE:PG)
The Procter & Gamble Company is a consumer packaged goods supplier. It operates through feminine and family care, beauty, health care, and other segments. The company predicts solid performance with 2% to 4% YoY sales growth in FY 2025, impressive enough for a stable consumer goods business. EPS is also expected to grow 5% to 7% in the upcoming fiscal year. PG was the 5th best stock in the household and personal care sector due to its strong 2024 performance.
The share price of the company was up 14% in 2024 but December seemed a challenging month for the stock as it fell 7% to give up some of the gains. Investors might take this decline in share prices as an opportunity to take a position in the stock and gain once the earnings come out. For defensive investors, the current dip presents a good opportunity considering the company’s healthy 2.5% dividend yield.
8. Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson is a healthcare company that designs, sells, researches, and manufactures different products globally. By net income, it is among the top 50 companies in the world. The firm has reported a very stable gross and operating margin over the last decade, which makes it a favorite among defensive investors.
JNJ is scheduled to release its Q4 earnings on Wednesday. The company’s estimated sales growth for Q4 is 5% YoY. Management expects a 5% to 7% revenue growth rate till FY 2030. EPS is projected to go up by 3.47% per year till FY 2033 as per the management, though this is only a conservative estimate.
The stock performance was dismal in the previous year registering an 8% decline. There are reasons to believe that the underperformance will reverse in 2025. For instance, the company books much of its R&D expenses in the last quarter of the year, so a relatively poor performance in this quarter wouldn’t necessarily reflect on the upcoming quarters.
The company has an attractive dividend yield of 3.41%. At an attractive valuation, the stock continues to be appealing for defensive investors.
7. Abbott Laboratories (NYSE:ABT)
Abbott Laboratories is a healthcare products provider that operates through medical devices, established pharmaceutical products, and other segments. The company’s Q3 performance was good as revenue grew 5% as compared to the previous year.
Now investors await the Q4 earning results which will be released on Wednesday. Abbott is projected to generate revenue worth $11.04 billion in Q4 while the EPS is estimated to clock in at $1.04. Wall Street analysts are bullish on the stock’s performance, indicating a 15% increase from the current price with an average target price of $130.54.
The stock struggled in the first half of 2024 but it regained in the second half. In the past five trading days, the stock’s performance suggests investors are optimistic about the earnings. The company is expected to continue attracting investor attention into 2025 because of its financial stability and attractive dividend yield of over 2%.
6. Intuitive Surgical Inc. (NASDAQ:ISRG)
Intuitive Surgical Inc. is a medical technology company that manufactures and markets robotic-assisted surgical systems, mainly da Vinci surgical systems. The global robotics market is growing day by day and so is the company. This growth will likely continue as robotics becomes mainstream thanks to powerful modern processors and AI developments.
The company’s free cash flows in the last quarter were $900 million which would help in the research & development expenses in the future. It expects Q4 revenue growth of about 25% YoY. The number of procedures grew 17% in 2024 as compared to the previous year and estimates show an expected increase in the number of procedures of 13-16% in 2025.
The company possesses a strong balance sheet with no debt and about $4 billion of available cash. Additionally, its stock performance was quite impressive over the past year with a gain of over 60%. The financial strength of the company is second to none and so is its economic moat.
5. GE Aerospace (NYSE:GE)
GE Aerospace is a supplier of electric power, commercial and defense aircraft engines, mechanical aircraft systems, and integrated engine components. The company showed a solid performance in the third quarter with an overall 28% increase in orders.
There was a 6% rise in revenue mainly due to improvements in equipment and services. According to FactSet data, analysts expect EPS growth of 22% and 20% in 2025 and 2026 respectively. It generates 70% of its revenue from aftermarket services, a reliable growth area.
Moreover, the company has a 0.6% dividend yield which is low but it plans to allocate $25 billion to shareholders through dividends and buybacks. The stock has gained 7% in the last 5 days in anticipation of an earnings beat.
4. Texas Instruments Incorporated (NASDAQ:TXN)
Texas Instruments Incorporated is a semiconductor company that manufactures, develops, and sells its products globally. It operates in Embedded processing and analog segments. The Q4 earnings of the company are scheduled to be released on 23rd Jan, and estimates show growth of $1.23 in earnings per share. The company is expected to generate $3.87 billion in revenue. The ongoing investments, especially under the CHIPS ACT, will help the company gain 18-19% of the market share by 2029. The management is playing a long game here so an earnings beat may not drive as much optimism among investors as other chip stocks do.
Although the stock struggled in the second half of the previous year, it is on an upward trend in the last month. The company has the potential to outperform in 2025 as the returns on its massive expansion plans start trickling in.
3. United Airlines Holdings (NASDAQ:UAL)
United Airlines is set to announce earnings later today and the stock is already up 2% in anticipation. The airline stock is expected to report a revenue of $14.34 billion with an EPS of $3.03. The EPS would be a 51% YoY increase, though the stock has already run up 13% this year so far, potentially meaning that extraordinary EPS growth is priced in.
Despite that bull run, the stock is valued quite attractively. It is trading at 8.4 times forward earnings which is reasonable considering the rising demand for air travel. The company is also buying back its stock, with a $1.5 billion buyback program already in place. This is the first time in years that the airline is executing a stock buyback, so investors can look forward to shareholder-friendly moves by the management in the near term.
2. American Express Company (NYSE:AXP)
American Express is touching 52-week highs and the reasons are simple. The company is about to report its Q4 performance and analysts expect a 16% bottom-line growth together with a 10% top-line growth. The expectations are indeed high, making it one of the most attractive earnings reports to look forward to this week.
Fundamentally, everything is going well for the company. It serves a customer base that is generally well-off and not afraid to spend more, it has a strong brand identity and a stock performance that keeps rewarding investors.
The only two things that investors need to worry about are a slowdown in consumer spending and high expectations. The slowdown doesn’t seem likely, so if the stock tanks after reporting an impressive quarter, it will most probably be the high expectations to blame.
1. Verizon Communication (NYSE:VZ)
Verizon is a communications giant that has struggled to reward its shareholders in the last few years. The stock is currently trading below $40, a level that makes it quite an attractive investment.
VZ is aggressively expanding its Fixed Wireless segment. The segment is responsible for considerable subscriber growth as well as an uptick in sales per user. The telecom company intends to double its subscriber base by 2028, so the aggressive plans make sense. If the company can achieve that, it will have over 90 million connected households with 8 to 9 million subscribers. Investors will have their eyes on these numbers in the earnings report rather than the revenue and EPS.
The stock also has a 7% dividend yield that will keep attracting income investors despite the stock’s dismal performance in the recent past.
Verizon is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held VZ at the end of the third quarter which was 67 in the previous quarter. While we acknowledge the potential of VZ as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as VZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
