Why Citigroup Inc (C), Philip Morris International Inc. (PM) and Netflix, Inc. (NFLX) Are 3 of Today’s Best Stocks

Advertisement

U.S. markets were moving moderately higher once again today, as earnings reports from Netflix, Inc. (NASDAQ:NFLX), Citigroup Inc (NYSE:C) and Philip Morris International Inc. (NYSE:PM) handily beat analysts’ expectations.

Meanwhile the Greek Parliament approved the financial aid package, with its subsequent Greek austerity program. Greek banks are expected to reopen on Monday after being closed for over two weeks.

best stocks, Netflix, C, PM, NFLXIn U.S. economic news, the Philadelphia Fed Manufacturing Business Outlook survey showed a decline in its diffusion index from 15.7 in June to 5.7 in July. Single digit readings are more the norm, with the double-digit reading from June seen as an anomaly. Basically, today’s reading means that while manufacturing orders were down from the previous month, they remain moderately higher.

The Dow Jones Industrial Average was up a notch at 0.3%, but the S&P 500 and Nasdaq were much stronger, closing 0.7% and 1.2% higher respectively. The Nasdaq 100 set a 15 year high at 4592.97. Sectors were up across the board, with Utilities leading the rest of the pack.

Finally, better-than-expected earnings drove several stocks higher, which is the reason that Citigroup, Philip Morris and Netflix are 3 of today’s best stocks.

Netflix, Inc. (NFLX)

Not to be outdone, NFLX stock surged 18% after Netflix trumped the street’s estimates on second-quarter earnings. Although Netflix was light on revenue, the streaming behemoth posted earnings of 6 cents a share on revenue of $1.64 billion. Analysts were looking for only 4 cents a share, but expected $1.65 billion in revenue.

More importantly, Netflix also topped estimates on new net additional subscribers, with a record 3.28 million first-time subscribers, well ahead of the 2.46 million number analysts were expecting.

Just imagine how much NFLX stock might have gained had Netflix also bested the revenue estimates.

Citigroup Inc (C)

Citigroup stock rallied well over 3% today as second-quarter earnings of $4.8 billion, or $1.45 a share excluding items, bested the street’s estimates for $1.34 a share. Despite falling 1% year-over-year, revenue of $19.5 billion also bested the $19.17 billion estimate.

This was Citigroup’s best quarter since 2008, and the jump in earnings was said to be the result of lower expenses and litigation costs. A year ago, Citi’s earnings were reduced drastically by a $3.7 billion charge stemming from a mortgage-bond settlement agreement it made with regulators.

Philip Morris International Inc. (PM)

An excellent Q2 earnings report also boosted the stock price of Philip Morris today, along with subsidiary Altria Group Inc (NYSE:MO). Although profits were down 14% from a year ago, PM’s adjusted earnings of $1.21 a share was well ahead of the Zacks Consensus Estimate of $1.12. In addition, revenue of $6.86 billion was also ahead of the estimates of $6.73 billion.

Philip Morris and Altria announced a more expansive partnership on e-cigarettes, which will include research and development to develop a new generation of e-cigarettes.

Philip Morris also reaffirmed full year guidance between $4.32 to $4.42 per share, two cents higher than the street estimates. PM stock rose 3%, and broke out intraday above recent resistance at $86.

MO stock was also higher by 3%.

As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/07/netflix-c-pm-nflx/.

©2024 InvestorPlace Media, LLC