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NVIDIA and 4 Top Earnings Charts

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Third quarter earnings season is finally coming to an end but not before we hear from a bunch of the retailers and the remaining technology companies.

On tap for the retailers are some of the largest in the world including Walmart and Alibaba, the home retailers like Home Depot and Lowe’s, and the department stores like Macy’s.

On the tech side, old tech titans like Cisco and NVIDIA will also report.

Many of these companies have solid earnings surprise track records, with some holding “all-star” status, with perfect 5-year earnings surprise track records. The number of companies holding that status has shrunk in the last 3 years thanks to the pandemic.

It’s not easy to beat every quarter, or nearly every quarter, for years.

Will these companies beat again?

NVIDIA and 4 Top Earnings Charts

1.     Target Corp. (TGT - Free Report)

Target has missed the last 2 quarters which is a surprise because prior to those misses, it had beat 13 quarters in a row, including during the entire first 2 years of the coronavirus pandemic.

Target has warned about excess inventories. Will it warn again this quarter?

Target shares have fallen 25% year-to-date but still aren’t cheap. They trade with a forward P/E of 21.4.

Investors get a dividend, currently yielding 2.5%.

Is Target still too pricey to handle?

2.     NVIDIA (NVDA - Free Report)

NVIDIA is coming off a rare earnings surprise miss last quarter after it had beat every quarter since 2019. That included all throughout the early months of the pandemic.

NVIDIA shares are down big in 2022, along with the other semiconductor stocks, falling 44%. But they’re off the worst of it and have rallied big in the last month, rising 42%.

Shares of NVIDIA have been expensive on a P/E basis the last few years and they remain so, with a forward P/E of 47.7.

Is this a buying opportunity in NVIDIA or a trap?

3.     Macy’s (M - Free Report)

Macy’s has an excellent earnings surprise track record with just 1 miss in the last 5 years and it was in 2019, before the pandemic.

Shares of Macy’s are down 20% year-to-date, which is a better performance than some competitors. Shares remain dirt cheap, though, with a forward P/E of just 5.1.

Macy’s is still paying a dividend, and it yields 3%.

Is Macy’s a hidden gem?

4.     Palo Alto Networks (PANW - Free Report)

Palo Alto Networks hasn’t missed on earnings 5 years. That is incredibly impressive given the coronavirus pandemic and the uncertainty in the technology industry.

Shares of Palo Alto Networks are down just 12.9% year-to-date, which is outperforming the S&P 500 which has fallen 16%.

But you’re going to have to pay up to buy the shares as Palo Alto Networks trades with a forward P/E of 52.

Will Palo Alto Networks continue to defy the selling pressure in the big cap tech stocks?

5.     The Gap, Inc. (GPS - Free Report)

Gap has beat just 2 out of the last 4 quarters, but both beats were by big margins. Gap beat last quarter by 300%.

Shares of the Gap have fallen 30.4% year-to-date and are down 50% over the last year. However, the recent stock rally has lifted the shares 28% in the last month.

The Gap has no P/E as it’s expected to lose $0.28 this fiscal year. It continues to pay its dividend, which is now yielding 4.9%.

Is all the bad news finally priced into the Gap?

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