This has been a wild year for investors. While most stocks fell sharply in February and March during the coronavirus market crash, many have already recovered. Furthermore, some stocks have risen to new all-time highs, offering incredible returns to shareholders.
With the earnings season close to us, many of these companies will have to justify the rapid earnings from their shares by demonstrating strong underlying business performance. Three hot stocks worth seeing when reporting earnings this month are Netflix (NASDAQ: NFLX), Tesla (NASDAQ: TSLA)and Apple (NASDAQ: AAPL). Shares of these three companies have risen approximately 60%, 250% and 30% to date, respectively. Making these gains even more impressive, they occurred during a period when S&P 500 fell 1.4%.
Before your earnings reports, here is a look at each of these stocks.
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Netflix
As one of the first growth stocks reporting its second-quarter results this month, TV streaming company Netflix will have a chance to set the tone for the earnings season this week. The company plans to release its latest commercial update after the market closes on Thursday, July 16.
Key metrics to see when Netflix reports earnings will be your earnings per share. On average, analysts expect earnings per share of $ 1.81, a whopping 202% year-over-year. This final boost is expected to be fueled by expanding operating margin and strong subscriber growth. Management guided 7.5 million net subscriber subscriptions during the quarter, a sharp increase compared to the 2.7 million subscribers Netflix added in the prior-year quarter.
Tesla
After a nearly 500% rise in share prices in the past 12 months, many people will be watching Tesla’s second-quarter update.
The company has already announced vehicle deliveries for the quarter that crushed analyst estimates, setting the stage for potential profit during a period when its main factory in California was closed for half of the quarter. However, most analysts still think the automaker won’t be able to make a profit during the period. Tesla’s consensus estimate of adjusted earnings per share is a loss of $ 0.71.
Investors are also likely to look for an update on management guidance for year-round deliveries. Will the company reconfirm its initial full-year forecast for more than 500,000 deliveries in 2020, or is temporary factory closings earlier this year too late to achieve this goal?
Tesla reports its second-quarter results after the market closed on July 22.
Apple
When Apple reports its third-quarter fiscal results after the market closes on July 30, investors will see if the tech giant’s business is recovering from the impact it had on both supply and demand during its second fiscal quarter.
IPhone revenue, in particular, will be significant, as the key product segment still represents more than half of Apple’s total revenue. Did iPhone revenue grow again during the period?
In addition, investors should look for stronger growth in Apple’s services and wearables segments, as these are important long-term catalysts for the company that investors have to help Apple continue to grow in the years to come. In the second fiscal quarter, service revenue increased 17% year-over-year, and in its portable accessories, home and accessories segment, revenue increased 23%.
