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This Week's 5 Critical Earnings Charts

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This is a big week for earnings with over 800 companies expected to report, including many of the FANGMAN stocks and other popular growth stocks but also companies that are consumer-focused like restaurants, retailers, online marketplaces, and home builders.

We’ve been getting mixed messages from companies so far, as Walmart has warned that consumers are spending more on food and gas and therefore pulling back on items like apparel but luxury retailers are saying consumers are staying the course.

Is the consumer slowing spending?

These 5 companies will shine a light on what is happening with consumers this summer. They have a mixed earnings surprise beat record, but the stocks have been popular with investors since the pandemic began.

Is it really as “bad” in the economy as everyone thinks? Or will some of these companies surprise with another strong report?

This Week’s 5 Critical Earnings Charts

1.    Chipotle Mexican Grill, Inc. (CMG - Free Report)

Chipotle has beat on earnings 5 quarters in a row even as it has faced inflationary pressures.

Chipotle is considered to be one of the top restaurant companies with high same-store-comparables and a strong app and loyalty program. But shares are down 24.5% year-to-date on worries about the economy.

Chipotle shares aren’t cheap, however, with a forward P/E that is still sky-high, at 43.

Will investors continue to pay a high premium for Chipotle as the economy slows?

2.    Etsy, Inc. (ETSY - Free Report)

Etsy was a pandemic winner as everyone bought cloth masks and gifts on the site. It has beat on earnings 8 quarters in a row, which is an impressive record during the pandemic.

But Etsy shares have plunged 57% year-to-date as investors price in the new reality of the reopen.

Shares, however, aren’t cheap with a forward P/E of 47. They also have bounced off recent lows, gaining 10.9% in the last month.

But is this a fake, bear market rally in Etsy?

3.    The Sherwin-Williams Company (SHW - Free Report)

Sherwin-Williams was a pandemic winner as consumers stuck at home rushed to paint the inside, and outside, of their homes.

But in 2022, shares have sunk 27% as inflationary pressures have hit. Yet shares aren’t cheap, with a forward P/E of 27.4.

Sherwin-Williams has beat 2 out of the last 4 quarters.

Could there be further downside in the shares if Sherwin-Williams misses again?

4.    Wingstop Inc. (WING - Free Report)

Wingstop was another big winner during the pandemic but it has now missed 3 quarters in a row.

Wingstop shares have fallen 45% year-to-date but have tried to rally in the last month. Shares gained as much as 30% but are now up just 12.8% as the rally looks to be faltering.

It’s not cheap. Wingstop still trades with a forward P/E of 69.

Should investors stay on the sidelines with Wingstop?

5.    Deckers Outdoor Corp. (DECK - Free Report)

Deckers has missed just 1 time in the last 5 years but it was just 3 quarters ago.

Deckers continues to own two of the most popular shoe brands: UGG and HOKA. But like a lot of growth stocks, shares have fallen this year, down 23% year-to-date.

It’s the cheapest of these 5 companies on a P/E basis, with a forward P/E of just 16.

Is Deckers now an attractive value stock that also has growth?