Financial Movers

Visa (#V) just announced Q3 earnings and reported pre-pandemic levels of revenue!

The financial services company announced Q3 Non-GAAP EPS of $1.49 (beats by $0.14) and revenue of $6.13B (beats by $270M). 

Shares of #Visa made new all time highs of $252 earlier this week, leaving many investors skeptical about buying. But there's a solid argument made for why shares can go higher. Cross-border transaction revenues are still down -$500M from 2019 levels, while total revenues are back to pre-pandemic levels. As travel comes back, revenues should increase, which can easily boost the stock price higher. 

Lockheed Martin (#LMT) is the world's largest defense supplier and their stock is down -16% while revenues stay steady increasing. 

The defense company reported Q2 earnings with Non-GAAP EPS of $7.13 (beats by $0.61) and revenue of $17.03B (+5% Y/Y). 

Bears of LMT stock believe the company isn't a buy because there are no wars. But their revenues have increased every year since 2014 with or without war. As technology advances it appears that governments will buy and advance their military equipment, with or without wars.

Today, Verizon (#VZ) announced Q2 earnings and beat analyst expectations! The communications company reported Q2Non-GAAP EPS of $1.37 (beats by $0.07) and revenue of $33.8B (+11.2% Y/Y). To top it off, the company said that the firm's overall business was running ahead of pre-pandemic levels and expect growth to continue.

Netflix (#NFLX) continues to have slowed subscription growth and fails to beat Q2 analyst expectations.

The global streaming platform reported Q2 GAAP EPS of $2.97 (missed by $0.19) and revenue of $7.34B (+19.3% Y/Y).

Many investors keep pointing to slow growth in subscription growth, but the company has already amassed 209.18 global paid memberships. Should the focus now shift to revenue growth?

International Business Machines Corporation (#IBM) posted Q2 earnings and were able to increase revenues, but failed to increase net income.

The tech company beat earnings by reporting Non-GAAP EPS of $2.33 (beats by $0.04) and revenue of $18.7B (+3.2% Y/Y). 

IBM has had years of decreasing revenues, so this quarterly spike is a breath of fresh air for investors, but seems to be overshadowing the company's large amount of debt and dividend that continues to outpace total net income. 

Is the company staging a comeback that's worthy to invest in, will it continue its downward trend for years to come?

Earlier this year there was a big shift from growth stocks to value stocks as inflation and interest rose. That means investors took profits in frothy names like Teldadoc (TDOC), NIO, and Coinbase (COIN), to move into value names like Pepsi (#PEP).

Shares of #Pepsi were trading at $129 in March of this year and just recently closed at $155.79, which is a +20% move in four months. Can it keep going?

Earlier this week the company surprised investors with a substantial earnings beat. They reported Q2 Non-GAAP EPS of $1.72 (beats by $0.19) and revenue of $19.22B (+20.5% Y/Y), beating by $1.27B.

It was impressive to see large growth in a mature company and management signaled that it's not over by forecasting to deliver a 6% organic revenue increase. Should investors be buying into the bullish Pepsi sentiment and purchase shares at all time highs?

Bottoming in May of 2020 at $20 and bouncing up to 2019 prices earlier this year $52, Delta Air Lines (#DAL) stock has been somewhat of a come back story. The airline company has an all time high of $63 and many investors want to know if a travel boom will send the stock flying back to highs.

Earlier this week #Delta reported Q2 earnings and topped analyst expectations. To top it off, CEO Ed Bastian states that, "Domestic leisure travel is fully recovered to 2019 levels and there are encouraging signs of improvement in business and international travel." 

In regards to the pandemic, the worst appears to be over for Delta. They posted a profitable June month and are planning on adding 27 planes to its fleet as demand picks up.

Should investors be buying the Delta dip?

Taiwan Semiconductor Manufacturing Company (#TSM) shares are currently trading at $117.53, which puts them down -16% from highs of $141. Is this a buy on dip opportunity?

Earlier this morning, TSM announced Q2 earnings, which left analyst skeptical. The semiconductor company reported Q2 GAAP EPS of $0.93 (beats by $0.02) and revenue of $13.29B (misses by $20M).

Today alone shares slipped -5% on the revenue miss. But are investors missing the bigger picture? Taiwan Semi was able to book grow margins of 50%, operating margins of 39%, and are expecting to increase revenue for Q3 by +$1.4B. Is TSM a buy on dip opportunity?

Bank of America (#BAC) announced Q2 earnings and gave investors mixed feelings. America's second largest bank reported Q2 GAAP EPS of $1.03 beats by $0.26, but missed on revenue by $300M.

Shares of BAC are trading at $38.86, which are up +64% over the 1Y, but flat over the past five months. Can the stock go higher, or has it reached its limit? In June, the bank announced a dividend increase of +21% and shares fell on the news. Now the bank missed on earnings, which is making investors question if it can continue to dip from its 52 week high of $43.49.

Is now the time to buy the BAC dip, or will it continue dipping?

This morning, JPMorgan (#JPM) reported a Q2 earnings beat! America's largest bank announced Q2 GAAP EPS of $3.78 beats by $0.60 and revenue of $30.5B (-7.9% Y/Y). Regardless, investors did not appear impressed because shares traded down and closed at $155.65 (-1.49%). Does this present investors with a buy opportunity?

Not only did the company beat earnings, but #JPMorgan announced late last month that they're raising its quarterly dividend to $1, up from $0.90. Still, shares are only up from the $153 that they were at when the bank announced the news. With little movement in the stock over the past few weeks, good earnings, and big dividend news, is now a buying opportunity?