The 5 Most Important Charts to Kick Off Earnings Season

Second quarter earnings season is finally here. First quarter was supposed to be dramatic due to the banking crisis, but instead, it was fairly typical. No actual drama ensued.

The big banks will lead off earnings season, as usual, with JPMorgan Chase and Citigroup leading the pack. But those aren’t the earnings charts to watch this week. I’ll be watching a group of five companies that represent a diverse look at the economy. Several of them have strong momentum this year. Will that continue?

They all have solid earnings surprise histories as well. But the beat isn’t going to matter much this quarter. Guidance is the name of the game as the Street is looking for any clues to the US economy, a possible recession, and whatever else may be on the near-term horizon.

5 of the Most Important Earnings Chart this Week

1.    Delta Airlines, Inc. (DAL) has missed on earnings in three of the last four quarters. But the Street doesn’t care as Delta Airlines has recently reported strong bookings. Shares have popped in 2023 and are up 48.4%. Delta Airlines is cheap, with a forward P/E of just 7.7. Is it time to buy Delta Airlines?

2.    PepsiCo, Inc. (PEP) hasn’t missed on earnings in 5 years. What an impressive track record. That includes the quarter when the pandemic hit. PepsiCo is a true earnings all-star. Shares are up 63% over those 5 years. PepsiCo is not a cheap stock. It trades with a forward P/E of 25. Is PepsiCo too hot to handle?

3.    ConAgra Brands, Inc. (CAG) has beaten 5 quarters in a row. Shares haven’t participated in 2023’s rally, however. ConAgra shares are down 14.4% year-to-date. It’s cheap, though, with a forward P/E of 11.7. ConAgra also pays a dividend, currently yielding about 4%. Is ConAgra a hidden value gem?

4.    Cintas Corp. (CTAS) has beaten every quarter for 5 years. That’s an incredible record for this uniform company. Cintas is trading near 5-year highs and is up 145% over that time period versus just 73.7% for the S&P 500. You won’t get Cintas cheap, though. It trades with a forward P/E of 34.3. How much more does Cintas have left in the tank?

5.    Fastenal Co. (FAST) has beaten 13 quarters in a row. Its last beat was just before the pandemic started, in early 2020. That’s an impressive earnings surprise streak. Shares of Fastenal are up 24.6% year-to-date, easily beating the S&P 500, up 14.8%. Fastenal pays a dividend, yielding 2.4%. But it’s not cheap. It trades with a forward P/E of 29. Will Fastenal beat again in Q2?

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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

Fastenal Company (FAST): Free Stock Analysis Report

PepsiCo, Inc. (PEP): Free Stock Analysis Report

Cintas Corporation (CTAS): Free Stock Analysis Report

Conagra Brands (CAG): Free Stock Analysis Report

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