The FAANG stock pack – which includes Meta Platforms, Inc. (NASDAQ:META, which used to be the “F” as Facebook), Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Netflix Inc. (NASDAQ:NFLX), and Alphabet Inc. (NASDAQ:GOOG) –lost their bite this year.
They’ve been on a consistent decline, owed to inflation fears, rising interest rates, supply chain issues, and business slowdowns caused by the pandemic. So, let’s use today’s Market360 to dig into the FAANG stocks’ earnings previews and see if they’re good buys ahead of their earnings results – and which stock will emerge as the leader of the pack.
Meta Platforms, Inc. (META)
Meta will release its third-quarter earnings report on Wednesday, October 26, after the market closes. Analysts expect earnings of $1.91 per share, down 69% from earnings of $3.22 per share a year ago. Revenue is expected to decrease 6% year-over-year to $27.45 billion, down from $29.01 billion the same quarter last year. Earnings estimates have been lowered 29% in the past three months, which lowers that chances Meta will surprise to the upside.
Apple Inc. (AAPL)
Apple is scheduled to release earnings for its fourth quarter in fiscal year 2022 on Thursday, October 27. Analysts anticipate earnings to decrease 2% year-over-year to $1.27 per share, down from $1.30 per share a year ago. Estimates call for revenue of $88.9 billion, which is an 8% year-over-year increase from $81.41 billion.
One of the most influential technology companies in the world, Apple continue to look for new ways to generate revenue. In fact, the company has increased its revenues by 33% in the last year. The iPhone remains the company’s flagship product, bringing in just over 50% of sales. But while customers anticipate the next iPhone rollout year after year, Apple is also focusing on releasing new products – which may include a virtual reality headset and self-driving car.
Amazon.com Inc. (AMZN)
Amazon will report its third-quarter earnings on Thursday, October 27. Analysts expect to see earnings for the upcoming quarter of $0.22 per share, down 36% from $0.31 per share a year ago. Revenue estimates of $127.77 billion represent a 13% increase from sales of $110.81 billion last year.
Netflix Inc. (NFLX)
We heard from Netflix on Tuesday after the market close. As I discussed on Thursday, the company reported revenue of $7.93 billion and earnings per share of $3.10 during the third quarter – solidly beating analysts’ estimates and driving the stock 20% higher the last three trading days of the week. (You can read my full review of Netflix’s earnings here.)
Alphabet Inc. (GOOG)
Alphabet is set to report its earnings on Tuesday, October 25. Analysts anticipate earnings to fall 11% year-over-year to $1.26 per share, down from earnings of $1.40 per share a year ago. Revenue is expected to increase 8% year-over-year to $70.75 billion, up from $65.12 billion in the same quarter last year.
As the FAANG stocks have come under pressure this year, it’s no surprise that most of the companies continue to rate poorly in my Portfolio Grader.
As you can see in the Report Card above, the Total Grades are mixed. Apple has a B-rating, making it a “Buy.” Google has a C-rating, making it a “Hold.” And Amazon, Meta, and Netflix have D-ratings, making them “Sells.”
While Apple leads the FAANG pack with its rating, the rest are not considered good buys ahead of their earnings announcements.
So, what are good buys?
That would be companies with strong fundamentals and earnings growth. And my Growth Investor Buy List is chock full of these fundamentally superior stocks.
If you join me at Growth Investor today, you’ll have full access to my latest buys, Top Stocks lists, as well as my High-Growth Investment and Elite Dividend Payers Buy Lists.
I am confident that these are the stocks that will emerge as the market leaders. And as we are entering a seasonably strong part of the year, you’ll want to take advantage of all my service has to offer.
Sincerely,
Louis Navellier
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What’s happening is only going to gather in strength over the coming decades. It certainly won’t weaken.
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It’s why I put together this video. In it, I’ll lay out exactly what is happening, including several key steps every American should take right now.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Meta Platforms, Inc. (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOG)
