Welcome to Extreme Investor Network, where we bring you the latest insights and analysis on the world of investing. This week, earnings season is in full swing, with some major players in the spotlight. So far, more than 14% of S & P 500 companies have reported, and the results have been mixed. According to FactSet data, 73.6% of companies have beaten earnings expectations.
Let’s dive into some of the biggest reports of the week and what analysts are saying, along with the potential implications for the broader market.
Starting with the major banks, Goldman Sachs, Morgan Stanley, and Bank of America all posted results that beat earnings expectations. However, the stock reactions were mixed. While Goldman Sachs and Morgan Stanley saw their shares climb around 3% and 2.5% respectively, Bank of America shares fell more than 3% despite beating on both top and bottom lines.
Analysts are bullish on Goldman Sachs, with JPMorgan, Bank of America, and Wells Fargo all raising their price targets following its positive results. Bank of America’s first-quarter results were described as “not too surprising” by Wells Fargo’s Mike Mayo, who remains confident in the bank’s reputation and credit quality.
Moving on to UnitedHealth, the company crushed estimates, sending shares soaring more than 14%. However, management noted the impact of a cyberattack on its subsidiary Change Healthcare, which will affect full-year earnings. Despite this, analysts are optimistic about UnitedHealth’s outlook, with one analyst reiterating a buy rating on the stock.
On the other hand, Netflix had a strong start to the year but faced concerns over its weaker-than-expected full-year revenue outlook. Analysts are divided on the stock, with some maintaining bullish ratings while others remain cautious.
Overall, the earnings season has been a mixed bag, with profit growth on track to disappoint according to FactSet data. As we look ahead to next week, about 150 S & P 500 names are slated to report, including Microsoft, Exxon Mobil, Alphabet, and Tesla.
Stay tuned to Extreme Investor Network for more updates and analysis on the latest earnings reports and market trends. Don’t miss out on our unique insights and expert analysis to help you navigate the world of investing. Join our community of extreme investors today!
