Stocks are trying to scramble into positive territory again on Friday following the reporting of blowout tech-sector earnings. The old “momentum” trade is back on which, in turn, is dragging the overall market higher by the scruff of the neck.
It’s not all good news, however, as earnings misses and even disappointing responses to earnings beats have pushed a number of well known stocks lower. There is little middle ground to be had, with stocks breaking higher or lower in this charged environment.
Here are three stocks that are looking hot and three that are ice cold:
Red-Hot Stocks: Amazon (AMZN)
Amazon.com, Inc. (NASDAQ:AMZN) shares soared in after-hours trading on Thursday and are up 4.3% in the cash session on Friday after reporting killer results: Earnings increased to $3.27 per share, $2.01 better than expected, on a 42.9% increase in revenues. Amazon Web Services sales jumped 49% to $5.4 billion, generating operating income of $1.4 billion — an impressive feat given increased competition in the space.
And if all that wasn’t enough, the company (in a rare sign of pricing power these days) increased the cost of its annual Prime membership by 20% to $119.
Ice-Cold Stocks: U.S. Steel (X)
United States Steel Corporation (NYSE:X) shares are being slammed down to their 200-day moving average, testing the lows from February, after reporting some operational issues at its Great Lake Works that spooked investors.The company reported earnings of 32 cents per share, two cents ahead of estimates, on a 15.6% rise in revenues.
The company will get a chance to try again when it next reports results on July 26 after the close.
Red-Hot Stocks: Microsoft (MSFT)
Microsoft Corporation (NASDAQ:MSFT) shares are testing a breakout above a long trading range going back to January after reporting earnings of 95 cents per share vs. the 85 cents expected on a 15.5% rise in revenues. Analysts cheered the result, with JPMorgan upgrading shares following the results on its movement toward multi-cloud architectures. BMO Capital Markets analysts cheered the results, which were impressive in their view given the company’s scale.
The company should next report results on July 26 after the close.
Ice-Cold Stocks: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) share are disappointingly weak, dripping below their 200-day moving average for a loss of more than 10% from the highs set in March. Investors were spooked last week by cautious comments on ultra-high-end smartphone demand from a key supplier — throwing shade on the uptake for the pricey iPhone X.
The company will report results on May 1 after the close. Analysts are looking for earnings of $2.68 per share on revenues of $61.02 billion. Bernstein analyst Tony Sacconaghi isn’t waiting, but lowered his estimates on Thursday on a forecast of 39 million iPhones sold in the June quarter vs. the 43 million consensus estimate.
Red-Hot Stocks: Verizon (VZ)
Verizon Communications (NYSE:VZ) shares are pushing higher, up 3.4% in trading on Friday to return to levels last seen in early February. This continues an upside tailwind enjoyed since the company reported solid results on Tuesday. Earnings of $1.11 per share matched estimates but were up 17% from last year. Revenue increased 6.6% — the best result since the fourth quarter of 2012. Results were driven by the addition of 260,000 new wireless customers.
The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.15 per share on revenues of $31.7 billion.
Ice-Cold Stocks: Comcast (CMCSA)
Comcast Corporation (NASDAQ:CMCSA) shares are dropping hard out of their two-month consolidation range to hit levels not seen since late 2016 after reporting weak subscriber numbers on Wednesday, with net video losses of 112,000 amid ongoing cord cutting dynamics. The company reported earnings of 66 cents per share, beating estimates by seven cents, on a 10.7% rise in revenues.
The company will next report results on July 26 before the bell. Analysts are looking for earnings of 60 cents per share on revenues of $21.8 billion.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
