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5 Most Important Earnings Charts This Week

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This is a big week for earnings with a large chunk of the S&P 500 expected to report. That includes many of the big tech giants such as Microsoft, Alphabet, Apple and Amazon.

But while these companies may be important to watch this week, there are also others you should keep on your watch list.

What’s happening in the global economy right now with China’s COVID restrictions tightening? How is inflation impacting? What about labor constraints?

In addition to economic conditions, 3 of these 5 companies have perfect 5-year earnings surprise records. They managed to beat during the pandemic. That’s impressive as not many companies have kept their earnings streaks alive over the past 2 years.

But can they do it again with all these challenges looming?

5 Most Important Earnings Charts This Week

1.    Microsoft (MSFT - Free Report)

The Street is depending on Microsoft to “save” big tech this quarter after Netflix’s earnings report. It hasn’t missed in 5 years and has one of the top earnings charts of the week.

But even mighty Microsoft is down 11% year-to-date. And shares aren’t cheap, with a forward P/E of 29.

Will valuation matter with Microsoft this quarter or will investors find a safe haven in these shares?

2.    General Motors (GM - Free Report)

General Motors also has an outstanding earnings surprise track record with just 1 miss in the last 5 years.

But investors have been bearish on General Motors in 2022, with shares down 25.6% year-to-date.

General Motors shares are cheap, with a forward P/E of just 6 and a PEG ratio of 0.6. It has a rare combination of value and growth.

Is the Street getting the story wrong on General Motors?

3.    Matador Resources (MTDR - Free Report)

Matador Resources is an independent oil and natural gas company. It has an amazing earnings surprise track record as it hasn’t missed in 5 years.

Energy has been the best performing sector of 2022 and Matador Resources is up 33% year-to-date.

But shares remain cheap due to soaring earnings estimates. It has a forward P/E of just 5.6.

Will Matador Resources be able to beat again this quarter?

4.    Apple (AAPL - Free Report)

Apple comes into this earnings season with a 5-year perfect earnings surprise track record.

Shares are down about 10% year-to-date but that is considered “better” than many other tech giants.

Apple isn’t cheap, with a forward P/E of 26.

Will Apple still have the magic this quarter?

5.    Chevron (CVX - Free Report)

Chevron will report on Friday, along with competitor ExxonMobil. It has actually missed 3 out of the last 4 quarters but Wall Street hasn’t cared about its earnings surprise track record.

Chevron shares are up 32% year-to-date to new 5-year highs.

It’s still cheap, with a forward P/E of 9.8 as earnings estimates are on the rise in the energy sector.

Is all the good news already priced into Chevron?

[In full disclosure, Tracey owns shares of MSFT in her personal portfolio.]

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