The three major U.S. equity indexes closed higher on Friday, after staggering a bit in the early going. The Dow Jones industrials ended the day up 2.47%, the S&P 500 closed 2.37% higher and the Nasdaq rose 2.31%. All 11 sectors closed higher, led by materials (3.46%) and consumer cyclicals and financials (both 2.92%). Real estate (0.68%) and communications services (0.85%) posted the smallest gains.

The advance estimate (first of three) on third-quarter gross domestic product is due before markets open Thursday. Economists’ consensus estimate calls for a year-over-year increase of 2.3%. On Friday, the monthly report on personal consumption expenditures (PCE) will be released before U.S. markets open. Income is expected to rise by 0.3%, and core PCE inflation is forecast to rise by 0.4%. Both estimates match August readings. Some of the cash the company spends on share buybacks might be better spent on returning an income stream to investors.

The three major indexes opened mixed Monday morning, with the Nasdaq down by about 1% in the first half-hour of trading.

After U.S. markets close Monday, Cadence Design, Discover Financial and Range Resources will report quarterly results. Before markets open Tuesday, General Electric, General Motors, UPS and Valero Energy are on deck to report results. Alphabet, Coca-Cola, Enphase, Microsoft and Visa are also reporting late Tuesday or early Wednesday.

Here is a look at three companies set to report results first thing Wednesday morning.

Boeing

Since reaching a 12-month high last November, shares of Boeing Co. (NYSE: BA) are down by 34%. Shares got a bounce when the company reported second-quarter results, but it did not last.

The company continues to face issues with certifying two versions of its 737 Max jets. The Max 10, a stretched version, may be canceled altogether if the certification process stalls, and the Max 7, a shortened version, has run into documentation problems with the FAA. Together, the two versions comprise about a quarter of the 4,000 or so orders Boeing has on its books for the 737 Max family.

Of 22 analysts covering the stock, 18 have a Buy or Strong Buy rating and three more have Hold ratings. At a recent price of around $141.30 a share, the implied upside based on a median price target of $200.00 is 41.8%. At the high target of $298.00, the implied upside is about 111%.

Consensus estimates call for third-quarter revenue of $18.03 billion, which would be up 8.1% sequentially and 18.0% higher year over year. Analysts are forecasting adjusted earnings per share (EPS) of $0.07, compared to a loss of $0.37 per share in the prior quarter and a loss per share of $0.60 last year. For the full 2022 fiscal year, Boeing is expected to post a loss of $2.37 per share, compared to last year’s loss per share of $9.44. Revenue is expected to increase by 11.7% to $69.57 billion.

Boeing stock trades at about 33.8 times estimated 2023 earnings of $4.18 and 20.3 times estimated 2024 earnings of $6.97 per share. The stock’s 52-week trading range is $113.02 to $233.94. Boeing has suspended its dividend, and total shareholder return for the past year was negative 34.1%.

Pharmaceutical giant Bristol-Myers Squibb Co. (NYSE: BMY) has added nearly 25% to its share price over the past 12 months. Shares rose steadily between late November, when they posted their 52-week low, and late June, when they posted their 52-week high. Since then, shares have dropped more than 8%. The company’s dividend yield makes it an attractive choice for a steady payer in a portfolio. Its strong brand sales are expected to remain solid, allowing for even better shareholder returns.

Of 22 analysts covering the drugmaker, 10 have a Buy or Strong Buy rating and another 11 rate the shares a Hold. At a share price of around $72.20, the implied upside at a median price target of $82.00 is about 13.9%. At the high price target of $90.00, the upside potential is about 25%.

For the company’s fiscal third quarter, analysts expect revenue of $11.18 billion, a decrease of 5.9% sequentially and a drop of about 3.8% year over year. Adjusted EPS are tabbed to come in at $1.83, down by 5% sequentially and 8.5% lower year over year. For the full 2022 fiscal year, the current revenue estimate is $46.03 billion, down about 0.8%, and the EPS estimate is $7.52, up just 0.2%.

Bristol-Myers stock trades at about 9.6 times expected 2022 EPS, 9.1 times estimated 2023 earnings of $7.94 and 8.8 times estimated 2024 earnings of $8.22 per share. The stock’s 52-week range is $53.22 to $80.59. The company pays an annual dividend of $2.16 (yield of 2.99%). Total shareholder return for the past year was just over 30%.

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Kraft Heinz

Shares of Kraft Heinz Co. (NASDAQ: KHC) have dipped by around 1% over the past 12 months but have added more than 8% since the beginning of the fourth quarter, while the consumer staples sector has dropped by about 3.8% in the past month. Kraft Heinz has a solid dividend yield and a payout ratio of more than 100%. That is a big part of the reason Warren Buffett continues to hold the stock, even though it trades for just over half its value after the merger was completed in 2015.

Analysts in general are not so sanguine. Of 20 brokerages covering the stock, 11 have a Hold rating and wight have a Buy or Strong Buy rating. At a share price of around $36.05, the upside potential based on a median price target of $42.00 is 16.7%. At the high price target of $51.00, the upside potential is 41.7%.

Kraft Heinz is expected to post third-quarter revenue of $6.28 billion, down 4.1% sequentially and by 0.6% year over year. Adjusted EPS are forecast at $0.56, down 20% sequentially and by 13.8% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $2.66, down 9.4% year over year, on revenue of $26.01 billion, down by 0.1%.

The stock trades at about 13.6 times expected 2022 EPS, 13.2 times estimated 2023 earnings of $2.74 and 12.6 times estimated 2024 earnings of $2.86 per share. The stock’s 52-week range is $32.73 to $44.87. Kraft Heinz pays an annual dividend of $1.60 (yield of 4.54%). Total shareholder return for the past 12 months was 3.4%.

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