Any Surprises Expected in Q2 Earnings?
(0:45) - What Should Investors Expect From Q2 Earnings?
(5:00) - Are Industries Adjusting Quicker Than Expected To The Fed Rate Decisions?
(7:10) - Could The Current Market Trend Shift Into A Recession?
(13:50) - Breaking Down The Banks Ahead of Earnings
(17:30) - How Are The Auto Retailers Currently Performing?
(20:45) - Are The Luxury Retailer Stocks Overvalued Right Now?
(26:20) - Episode Roundup: HELE, PNC, JPM, PAG, DECK
Podcast@Zacks.com
Welcome to Episode #365 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of Research, Sheraz Mian, who is Zacks expert on earnings, to discuss what to look out for in the second quarter earnings season.
Are there going to be any surprises in the reports? Should investors be worried about the banks again? Are earnings sending a signal about the economy?
5 Stocks That Could Tell the Story of This Earnings Season
1. Helen of Troy (HELE)
Helen of Troy has already reported earnings. It beat by $0.32 reporting $1.94 versus the Zacks consensus of $1.62. Revenue was down 6.6% year-over-year. Helen of Troy did reiterate full year guidance however as retail partners normalized inventory levels and matched those to consumer demand.
Shares of Helen of Troy spiked higher on the earnings report and have gained 32.2% over the last month. It’s still cheap, with a forward P/E of 14.7.
What does Helen of Troy’s earning report tell us about the economy, if anything?
2. JPMorgan Chase (JPM)
JPMorgan Chase is one of the largest banks in the United States. Its CEO, Jamie Dimon, often talks about the economy, as a whole, on the company’s earnings conference calls because the company has so much financial data about all aspects of the economy.
Shares of JPMorgan Chase are up 10.5% year-to-date. It has beat on earnings three quarters in a row.
Will JPMorgan Chase warn of a recession this quarter?
3. The PNC Financial Services Group (PNC)
PNC Financial will be one of the first big regional banks to report earnings. It has a great earnings surprise track record, having just 1 miss in the last 11 quarters. That miss was in early 2023 however.
Shares of PNC Financial are down 19.4% year-to-date. It’s trading with a forward P/E of 9.3, but the full year earnings estimates have been cut in the last week.
Are the analysts too pessimistic on PNC Financial?
4. Penske Automotive Group (PAG)
Penske is an auto and truck retailer. It’s one of the hottest stocks of 2023, with shares up 55% year-to-date to new all-time highs
Penske’s last earnings miss was all the way back in 2019. The analysts are bullish on Penske with 2 estimates revised higher in the last 30 days for the full year. Shares trade with a forward P/E of 11.4.
Are the auto retailers, like Penske, going to share insights into the economy this quarter?
5. Deckers Outdoor Corp. (DECK)
Deckers owns two of the hottest brands in shoes, UGG and Hoka. It has beat 6 quarters in a row and has only missed one time in the last 5 years.
Shares of Deckers are trading at new all-time highs. They’re up 38% year-to-date. Deckers isn’t cheap. It trades with a forward P/E of 25.
Should investors be concerned about valuation of the hot stocks like Deckers?
What Else do you Need to Know about Q2 Earnings Season?
Listen to this week’s podcast to find out.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Helen of Troy Limited (HELE) : Free Stock Analysis Report
