5 Must-See Earnings Charts This Week

Earnings season picks up steam this week as over 400 companies are expected to report, many of them being large cap companies.

The large caps have outperformed over the last few years as money rotated into companies that could withstand all the stresses and pressures of the pandemic.

These 5 large caps have good earnings surprise track records, with some posting 5 years of consecutive earnings beats.

That’s not easy, especially in the middle of a 2-year long pandemic.

But all 5 of these companies are trading with forward P/Es over 20. None are considered “cheap” here.

Will their earnings reports be strong enough to boost the shares?

5 Must-See Earnings Charts This Week

1.    Mastercard Inc. MA

Mastercard has beat 4 quarters in a row but that doesn’t tell the whole story. It has only missed once in the last 5 years, and it was in 2020 when the pandemic hit. Otherwise, Mastercard has an outstanding earnings surprise record.

Mastercard has been a big winner over the last 5 years, with shares gaining 208% during that time. However, in 2022, the shares have been weak, falling 5.7% in January.

Mastercard remains an expensive stock, based on it’s forward P/E which is still 34.

If Mastercard shares continue to sell-off, is it a buy?

2.    McDonald’s MCD

McDonald’s has beat 3 quarters in a row. With the Omicron wave still impacting globally, McDonald’s is likely going to see impacts due to outbreaks among its workers and COVID restrictions in some countries like China.

In addition to Omicron, watch McDonald’s for further insight into commodities and wage inflation.

Shares are down 6.5% year-to-date but still trade with a forward P/E of 25.

Investors are loyal, but will they stick around McDonald’s if margins get squeezed?

3.    Tractor Supply Co. TSCO

Tractor Supply, a rural retailer, has beat 7 quarters in a row, which has included the entire time of the pandemic. That’s impressive.

Like many stocks, shares of Tractor Supply have fallen in 2022, losing 11% year-to-date.

It’s still expensive, with a forward P/E of 24.

Tractor Supply has been one of the big winners during the pandemic. Shares are up 126% over the last 2 years.

But is it too pricey to handle in 2022?

4.    Danaher Corp. DHR

Danaher hasn’t missed in 5 years. What an amazing earnings surprise performance given the pandemic.

This global science and tech innovator has always been a growth stock, as it’s among the best performing S&P 500 stocks over the last 30 years.

In the last 5 years shares have added another 235%.

But Danaher shares have struggled in 2022. It’s down 17.6% year-to-date.

Shares remain pricey, with a forward P/E of 27.3.

Will the stock get a boost from this earnings report?

5.    McCormick & Company MKC

McCormick & Company has beat 3 quarters in a row and has only missed 3 times in the last 5 years.

McCormick was a big pandemic winner because it sells spices, seasonings and condiments, all which were in big demand during the pandemic.

But what happens now?

McCormick shares aren’t cheap, as they trade with a forward P/E of 31.

But they also haven’t gotten crushed in 2022, as the stock has fallen just 3.7% year-to-date.

Is McCormick too expensive to dive in?

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Mastercard Incorporated (MA) : Free Stock Analysis Report
 
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