This week will provide investors with some of the biggest earnings reports of 2021 with the names of Intel, Coca-Cola, Netflix, and more. For us the most exciting companies to deliver earnings this week include Coca-Cola, Netflix, and Johnson & Johnson.
What to look for in Coca-Cola stock and what it may signal. ($KO)
Earnings report announced Monday, April 19th before market open
Source: Getty Images
On February 21, 2020 Coca-Cola reached a price per share of $60.13. This all-time high for the company came just as Covid-19 was set to take over the rest of the year. Following in-home orders their price dipped significantly despite great demand for their product. Since then, their share price has been steadily increasing as the company tries to recuperate the losses from 2020.
On Monday, April 19th the company will release their Q1 results. This will be very interesting for the company. Their leading competitor Pepsico announced spectacular earnings for their quarter last week. This demonstrates a positive trend for the beverage industry. If Coca-Cola follows this trend and announces a great quarter, then perhaps their stock can rise back to the highs we saw a year ago. Of course, Coca-Cola is a very liked stock especially for their dividend so add that 3.13% on top of the potential gain in their stock and Coca-Cola could be looking to have a tremendous year.
Can Netflix exceed their evaluation with good earnings? ($NFLX)
Earnings report announced Tuesday, April 20th after market close
Source: Popular Science
One of the favorite stocks throughout the pandemic has been Netflix. With little to do at home many investors believed Netflix would add new users and as a result boost revenue. Now as their earnings report nears could we expect similar growth?
As we saw in their Q3 report Netflix struggled to add new users. This seems reasonable considering the number of subscribers that have been added over the past few years. Now with increasing competition from other streaming services such as Disney Plus, HBO Max, Paramount Plus, and Hulu it’s a difficult task for Netflix to retain and add users. Adding the scenario that government lockdowns are steadily lifting and people are excited to be outdoors we may see a similar trend of hard times for the company. We could expect to see an increase in movement of other streaming services that are publicly traded as well. If the streaming giant is able to produce an increase in their subscribers, they can demonstrate to investors who is the number one streaming service. Doing this will provide the company with a good amount of upside potential.
Amid controversy facing the Johnson & Johnson vaccine what can we expect from their quarterly results? ($JNJ)
Earnings report announced Tuesday, April 20th before market open
Source: Mark Ralston Getty Images
As with Coca-Cola, Johnson & Johnson stock has long been loved for investors seeking good, steady dividends. With a dividend of 2.49% Johnson & Johnson has attracted a lot of investors. Now that they face a road bump in their vaccine many people are waiting for earnings to decide where the company is heading.
A lot of excitement has been brought to pharmaceutical companies due to covid vaccines such as Moderna and Pfizer. Even though they capture headlines, covid vaccines do not account for nearly enough profit. In fact, Johnson & Johnson has agreed not to take a profit from issuing these shots. So, instead of focusing on this narrative we must look deeper into the company and how their Q1 results may play out. One very exciting part of the company are their medical devices. The company provides many products for surgery rooms ranging from joint reconstruction to biomaterials. Elective surgeries are expected to increase significantly compared to 2020, but still at a limited capacity. Despite this we could see decent results from Q1 for Johnson & Johnson backed by steady revenue from their pharmaceuticals business and the increase in elective surgeries.
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