3 US stocks to watch closely this week: Netflix, Tesla, Procter & Gamble

Quarterly earnings are likely to be the center of attention next week, when some of America’s biggest companies start releasing their latest quarterly numbers, amid rising commodity prices, ongoing geopolitical crisis and continued shortages of the supply chain.

According to Bloomberg, recent analyst reviews and trends in corporate guidance suggest that pandemic-era earnings season hit rates and returns were outside normal parameters and could be hitting their peak. end.

Contrary to the tendency for analysts to raise their estimates ahead of the upcoming earnings season during the pandemic, analysts spent most of the run-up to the first-quarter 2022 earnings season revising their expectations lower.

However, they still expect some companies to report higher profits, especially those that continue to retain their pricing power. Earnings are expected to rise 6.1% in the first quarter, from 8.9% in the fourth quarter, according to I/B/E/S data from Refinitiv.

Below, we’ve picked out three stocks from different sectors that we’re watching closely as the first-quarter earnings season kicks into full gear:

1.Netflix

Streaming entertainment giant Netflix (NASDAQ:) is set to report its first quarter 2022 results on Tuesday, April 19, after market close. Analysts expect earnings of $2.95 a share on revenue of $7.94 billion.

Netflix stock has been under heavy pressure since shares hit a record high on Nov. 11. Investors fear that growing competition and weak subscriber growth will continue to weigh on sales and margins. Pressured by these headwinds, Los Gatos-based Netflix’s stock has lost more than 40% of its value since the start of the year. It closed Thursday at $341.13.

Netflix’s plunge accelerated after the company released its latest in January, showing subscriber growth isn’t coming back as quickly as analysts had expected. Compared to the four million subscribers added a year earlier, the company is only expected to add 2.5 million subscribers in the first quarter.

2.Tesla

Electric vehicle maker Tesla Inc (NASDAQ:) will release its first quarter results on Wednesday, April 20 after market close. Analysts expect earnings of $2.24 per share on revenue of $17.63 billion.

TSLA W1

The Austin, Texas-based EV maker announced this month that it shipped 310,048 cars worldwide in what Elon Musk called an “unusually” difficult first quarter, in due to ongoing supply chain disruptions. This figure was slightly higher than analysts’ expectations.

Nevertheless, this performance shows that the company has been able to manage existing supply chain issues much better than traditional automakers who have had to idle factories and reduce production.

The company’s sales forecast for the rest of 2022 and the demand situation in China, where COVID lockdowns threaten to hurt production, will be important details investors are waiting for information on.

Tesla stock, after falling about 7% this year, closed Thursday at $985.

3. Procter & Gamble

Consumer staples giant Procter & Gamble (NYSE:) will report its fiscal 2022 third quarter before market open on Wednesday. Consensus calls for earnings per share of $1.3 on revenue of $18.7 billion.

PG W1

The maker of Downy fabric softener, Puffs tissues and Luvs nappies is among companies feeling the negative effects of rising inflation and supply shortages. The Cincinnati, Ohio-based company, however, is trying to counter those pressures by raising prices.

In January, she told investors she now expects organic sales growth of 4% to 5% for the full year, down from an earlier projection of 2% to 4%, as consumers are better able to absorb higher prices, helping P&G meet rising raw material, freight and foreign exchange costs.

P&G stock closed Thursday at $158.57, down 3% year-to-date. The stock has gained around 19% in 2021, benefiting from high demand for household essentials during the pandemic.

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