Second quarter earnings season has now officially begun.
While the first week is always focused on the big banks like JPMorgan Chase and Bank of America, there are also dozens of other companies reporting in numerous industries this week which will give investors a good look at what is happening in the US with the coronavirus recovery.
These 5 companies are in key industries including pharmaceuticals, restaurants, industrials and transportation.
Are they seeing a recovery in their businesses?
Will they give third quarter, or full year, guidance?
5 Companies to Watch for the Coronavirus Recovery
• Abbott Laboratories ABT hasn’t missed in 5 years. That’s an impressive streak. Shares have recovered all of their coronavirus sell-off losses, and then some, as they’re up 11% year-to-date. They’re not cheap, however, with a forward P/E of 33. Are the drug makers still a “safe” play?
• Johnson & Johnson JNJ also hasn’t missed in 5 years. Shares have rallied off of coronavirus lows and are up 2% year-to-date. But is all the good news already priced in?
• Domino’s DPZ was already one of the leaders in the restaurant industry in same-store-sales going into the pandemic. But with in-restaurant dining suspended in many states, consumers took to Domino’s easy delivery app for Friday night family dinner. Domino’s has only missed once in the last 4 years. Shares are up 41% year-to-date and now trade with a forward P/E of 35. Is it too hot to handle or is it the perfect company for the times?
• PPG Industries PPG is in the coatings business. If you want to know what’s happening in the industrials, you should tune it. It’s missed the last 2 quarters but shares have rebounded 24% over the last 3 months. Is the recovery priced in?
• Kansas City Southern KSU is the first railroad set to report earnings this quarter. It has beat 6 quarters in a row. Kansas City Southern is unique because it has rails both in the US and inside Mexico. Shares are up 1.7% year-to-date. Will it continue its earnings surprise streak?
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
Johnson Johnson (JNJ) : Free Stock Analysis Report
Dominos Pizza Inc (DPZ) : Free Stock Analysis Report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Kansas City Southern (KSU) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research