Despite the shortened holiday week, the new earnings season will produce a long list of reports from big name stocks.
The current earnings season has gotten off to a good start, with generally positive numbers coming out of the financial sector. With the major indexes, all trading near record highs the market will need to see this streak of positive reports continue for stocks to build on their recent gains.
A strong job market and a couple of new trade deals have boosted investor confidence and allowed stocks to hit record highs.
Here are a few names that are going to report during the current week that have the potential to move the overall market.
American Express (AXP)
Credit card company American Express (AXP) will report its fourth-quarter numbers on Friday. The payment processor will release its quarterly results before the market opens. Analysts forecast earnings of $2.00 per share, down slightly from $2.32 during the same period last year. Strong consumer confidence has kept strength in the credit card sector, and AXP stock hit an all-time high on Friday as the bull market continues. American Express has posted positive earnings surprises the last 11 quarters, and the street expects another earnings beat with a $2.05 whisper number for the recent quarter. The market should remain positive on the overall sector as consumer spending remains strong and Americans carry record level credit card debt. The company has grown earnings 10% per annum for the last five years and looking ahead it is expected to grow profits at an annual rate of 8.5% over the next five years. AXP trades at $131.52 with an average price target of $134.33.
Kimberly-Clark (KMB)
Consumer goods maker Kimberly-Clark (KMB) hit an all-time high in Friday's trading sessions and ended the week just shy of its high. The company is expected to post its fourth-quarter numbers on Thursday. Kimberly-Clark will report its numbers before the market opens with the consensus calling for earnings of $1.70 per share. During the same period last year, KMB posted earnings of $1.60. The company has shown modest earnings growth of 3.9% per annum for the last five years and looking ahead analysts expect profits to rise at an annual rate of 5.4% for the next five years. The company has posted positive earnings surprises in the last three quarters, but sales did fall slightly below the consensus last quarter. KMB is now trading at $144.50 and analysts have an average price target of $136.89 on the stock. The street expects a small earnings beat with a whisper number of $1.71. If the company is able to deliver the expected earnings beat analysts will likely boost their targets and allow shares to build on their recent gains.
Netflix (NFLX)
Video streaming giant Netflix (NFLX) is scheduled to report its fourth-quarter numbers Tuesday. Netflix will release its quarterly numbers after the market close with the consensus calling for earnings of $0.50 per share, up from $0.30 during the same period last year. Not only is the company expected to post strong earnings growth, the street expects an even bigger year over year increase with a whisper number of $0.58. Netflix stock came under pressure last year as increased competition in the sector weighed on investor sentiment. Apple (AAPL) and Disney (DIS) are both moving into the market, but neither appears to be the "Netflix killer" that the market feared. Netflix shares have traded steadily higher since hitting a 52-week high in September. The stock trades at a very high valuation with a forward P/E of 62, but the street is willing to buy into the stock at a high valuation due to the company's past and expected earnings growth. Netflix has grown earnings at an annual rate of 77% over the last five years and looking ahead analysts forecast profits to rise 41% per annum over the next five years. If the company is able to deliver the expected earnings beat NFLX shares should build on their recent gains despite the stock's valuations. NFLX trades at $339.67 with an average price target of $375.96.
