Yahoo Finance Big Cap Earnings Look Bullish for 2020
(0:35) - Q3 Earnings Overview: Should Investors Be Optimistic?
(8:50) - What Is The Finance Sector Showing Us?
(14:10) - What’s Exactly Happening With The Small Cap Companies?
(19:35) - Are The FANG Stocks Back On Top?
(24:00) - Episode Roundup: AAPL, GOOGL, NVDA, JPM, BAC, C
Welcome to Episode #201 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Zacks Director of Research, Sheraz Mian, joins the conversation to discuss the third quarter earnings season and the outlook for 2020.
Third Quarter Earnings Season: Better Than Expected
The doom and gloom bears were proven wrong in the third quarter as third quarter earnings were down just a measly 1.7%, with 447 members of the S&P 500 having already reported. It’s mostly the retailers that still remain.
Even the finance sector, which has finished reporting for the quarter, saw earnings up 3% on 9.3% revenue gains.
Additionally, companies didn’t warn on the fourth quarter, nor on 2020, as expected.
Therefore, analysts remain bullish that the outlook could actually improve in 2020 with earnings expected to return to a record high with 8.5% growth.
Revenues are also expected to jump 4.7% which implies an acceleration of the global economy next year.
Where Can Investors Find Big Cap Bargains?
Even with the solid reports by the financials, some of them remain values including the big banks such as JPMorgan Chase & Co. JPM, Bank of America BAC and Citigroup C.
They have the scale to still grow margins even as the Fed cuts interest rates.
Big Technology’s Advantages
Also, despite renewed calls for more regulations on big technology companies, they have advantages such as size that prohibits competitors from entering the space.
Their size also allows them to be able to hire thousands of employees to do things such as content quality checks.
Apple AAPL and Alphabet GOOGL have both been hitting new all-time highs recently.
According to Sherarz, the FAANG stocks, Facebook, Amazon, Apple, Netflix and Alphabet, will make up almost 1/10th of the S&P 500’s earnings by the 2020-21 time period.
The large cap advantage isn’t going away anytime soon.
What else should investors know about the earnings outlook?
Tune into this week’s podcast to find out.
[In full disclosure, the author of this article owns shares of GOOGL in her personal portfolio.]
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Citigroup Inc. (C) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
