All three major U.S. equity indexes closed higher on Thursday. The Dow Jones rose 0.51%, the S&P 500 closed up 0.99% and the Nasdaq saw a 1.36% gain. Nine of 11 sectors, led by consumer cyclicals (up 2.3%) and health care (up 1.5%), ended the day with gains. Energy (down 1.8%) and communications services (down 0.1%) lagged. A rise in the number of new claims for jobless benefits was likely interpreted as a signal that the Federal Reserve’s interest rate hikes are working to reduce inflation. In Friday’s premarket session, the Dow was up while the S&P 500 and the Nasdaq were lower.

After markets closed Thursday, Snap reported a smaller-than-expected loss per share, along with a slight revenue miss. The company did not offer a forecast for the third quarter other than to say revenue is running about flat with the second quarter, about 10% below the consensus estimate for the current quarter. Shares tumbled more than 34% early Friday.

Before markets opened on Friday, Twitter missed estimates on both the top and bottom lines. The company blamed the economy and Elon Musk. Who could have guessed? The stock traded lower early but recovered.

Verizon missed the consensus profit estimate by a penny and exceeded the revenue estimate. The company also pulled in revenue expectations in some areas. Shares were down more than 5% in early trading.

American Express beat consensus estimates on both the top and bottom lines. The stock traded up more than 4% in early Friday.

NextEra Energy beat the bottom-line estimate but missed on revenue. The stock traded up over 2%.

Schlumberger beat both top-line and bottom-line estimates and issued upside guidance for full-year revenue. The stock traded up more than 6%.

Cleveland-Cliffs missed the consensus earnings per share (EPS) estimate by 17% and reported better-than-expected revenue. Shares were down by almost 3%.

Newmont, NXP Semiconductor, and Range Resources will report quarterly results on Monday.

Here is a look at four companies set to report results before Tuesday’s open.

Coca-Cola

A long-time Warren Buffett favorite and Dow component, Coca-Cola Co. (NYSE: KO) has posted a share price gain of more than 13% over the past 12 months. Since posting a 52-week high in late April, the share price has dropped by 6.3%. When Coke reported first-quarter results in April, the stock was up 27% over the previous 12 months. The company is one of 39 that has earned the title of Dividend King for having raised its dividend every year for 50 consecutive years.
Analysts are bullish on Coca-Cola stock, with 17 of 25 analysts having a Buy or Strong Buy rating. Another seven rate the shares at Hold. At a recent price of around $61.40 a share, the upside potential based on a median price target of $70.00 is 14%. At the high price target of $78.00, the upside potential is 27%.

Second-quarter revenue is forecast at $10.55 billion, which would be up 0.4% sequentially and by 4.1% year over year. Adjusted EPS are pegged at $0.67, up 4.6% sequentially but down by a penny year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $2.46, up 6.2%, on revenue of $41.87 billion, up 8.3%.

Coca-Cola stock trades at 24.9 times expected 2022 EPS, 23.3 times estimated 2023 earnings of $2.64 and 21.7 times estimated 2024 earnings of $2.83 per share. The stock’s 52-week trading range is $52.28 to $67.20. Coca-Cola pays an annual dividend of $1.76 (yield of 2.87%). Total shareholder return for the past year was 11.5%.

General Electric

Over the past 12 months, shares of General Electric Co. (NYSE: GE) have slipped by nearly 33%. The shares dipped to their 52-week low just last week. Last November, the company said it planned to spin off its health care and energy businesses into separate companies and become primarily an aviation company.

Earlier this week, it announced that the health care company would be named GE Healthcare when it is spun off early next year, the energy business would be known as GE Vernova after its 2024 spin-off and the aviation business would be named GE Aerospace. Boring, perhaps, but perhaps a little less excitement at GE after three decades of rattle and hum is not such a bad thing.

Analysts remain bullish on the stock. There are 15 Buy or Strong Buy ratings and six Hold ratings among the 21 brokerages covering the stock. At a share price of around $68.10, the potential upside to a median price target of $90.00 is about 32.2%. At the high target of $129.00, the upside potential is 89.4%.

Second-quarter revenue is forecast at $17.94 billion, up about 5.1% sequentially but down about 2% year over year. Adjusted EPS are forecast at $0.42, up 75.8% sequentially and 52.6% higher year over year. For full fiscal 2022, analysts expect GE to report EPS of $2.81, up 32.5%, on sales of $77.44 billion, up 1.7%.

GE stock trades at 24.3 times expected 2022 EPS, 14.4 times estimated 2023 earnings of $4.72 and 11.6 times estimated 2024 earnings of $5.90 per share. The stock’s 52-week range is $59.93 to $116.17, and GE pays an annual dividend of $0.32 (yield of 0.47%). Total shareholder return for the past 12 months was negative 34.7%.

McDonald’s

Shares of McDonald’s Corp. (NYSE: MCD) have added 10.6% to their price over the past 12 months. For the year to date, the stock is down 4.4%. Announced changes to the company’s franchise system have alienated franchise owners. According to CNBC, 87% supported a no-confidence vote in CEO Chris Kempczinski and U.S. President Joe Erlinger. The changes include ending the company’s policy of giving preferential treatment for new franchises to existing franchisees.
Analysts are solidly bullish on McDonald’s stock, with 28 of 36 having a Buy or Strong Buy rating while the other eight rate the shares at Hold. At a share price of around $253.50, the upside potential based on a median price target of $280.00 is about 10.5%. At the high price target of $316, the upside potential is about 25.7%.

Second-quarter revenue is forecast at $5.83 billion, down 3.0% sequentially and 0.5% lower year over year. Adjusted EPS are pegged at $2.47, up 8.2% sequentially and by 4.2% year over year. For full fiscal 2022, consensus estimates call for EPS of $9.87, up 6.3%, on revenue of $23.26 billion, up about 0.2%.

McDonald’s stock trades at 25.7 times expected 2022 EPS, 23.8 times estimated 2023 earnings of $10.66 and 22.1 times estimated 2024 earnings of $11.45 per share. The stock’s 52-week range is $217.68 to $271.15. McDonald’s pays an annual dividend of $5.52 (yield of 2.18%). Total shareholder return over the past 12 months is 9.8%.

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3M

Over the past 12 months, shares of Dow component 3M Co. (NYSE: MMM) have tumbled by about 31%. 3M was among our Dogs of the Dow for 2022, one of 10 Dow stocks paying the highest dividend. The dividend yield is even higher now because the share price has fallen so much, and the dividend has increased by a penny.

More than 100,000 U.S. military veterans have filed suit against the company for hearing loss due to 3M’s defective earplugs. The company already has paid nearly $190 million in damages to a relative handful of veterans and a $9.1 million settlement with the federal government.

Analyst sentiment is lukewarm at best. Of 20 brokerages covering the stock, 12 have Hold ratings. There is just one Buy and one Strong Buy rating. At a share per-share price of around $134.00, the implied gain based on a median price target of $144.00 is 7.5%. At the high target of $210.00, the upside potential is 56.7%.

The consensus revenue estimate for the second quarter is $8.7 billion, down 1.5% sequentially and by 2.8% year over year. Adjusted EPS are forecast at $2.44, a sequential decline of 8% and a decrease of 5.8% year over year. For the full 2022 fiscal year, analysts are looking for EPS to rise by 3.7% to $10.50 on a revenue increase of 0.5% to $35.52 billion.

3M stock trades at 12.8 times expected 2022 EPS, 12.2 times estimated 2023 earnings of $11.02 and 11.3 times estimated 2024 earnings of $11.81 per share. The stock’s 52-week range is $125.60 to $202.77, and 3M pays an annual dividend of $5.96 (yield of 4.45%). Total shareholder return for the past 12 months was negative 30.9%.

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