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.

All three major indexes traded higher in Monday’s premarket session.

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.

Here is a look at five companies on deck to report results Tuesday and Wednesday.

Alphabet

Over the past 12 months, the parent of Google, Alphabet Inc. (NASDAQ: GOOGL), has posted a share price decline of nearly 29%. Since posting a recent high in mid-August, the stock has dropped to a 52-week low earlier this month, but it has recovered somewhat in the last few days. The company reports quarterly results after markets close on Tuesday.

Last week’s market debacle after Snap warned of falling advertising revenue is not expected to affect the operator of the world’s most popular search engine. One thing that could give the stock an upward jolt would be the announcement of a dividend payment. Alphabet is sitting on a cash and investments pile of around $125 billion and really has no place to spend it.

Analysts continue to be universally bullish on the stock. Of 51 ratings, 48 have a Buy or Strong Buy rating, and the other three have Hold ratings. At a recent price of around $101.10 a share, the upside potential based on a median price target of $140.00 is 38.5%. At the high price target of $186.00, the upside potential is nearly 84%.

Third-quarter revenue is forecast at $70.72 billion, which would be up 1.5% sequentially and by 8.6% year over year. Adjusted earnings per share (EPS) are pegged at $1.26, up 4.0% sequentially but down 10.0% year over year. For the full 2022 fiscal year, current consensus estimates call for EPS of $5.13, down 8.6%, on revenue of $255.89 billion, up 12.1%.

Alphabet stock trades at about 19.7 times expected 2022 EPS, 17.2 times estimated 2023 earnings of $5.88 and 14.9 times estimated 2024 earnings of $6.82. The stock’s split-adjusted 52-week trading range is $94.38 to $151.55. The company does not pay a dividend, and the total shareholder return for the past 12 months is negative 28.7%.

Dow component and Warren Buffett favorite Coca-Cola Co. (NYSE: KO) has posted a share price gain of 3% over the past 12 months. Since posting a 52-week high in late April, the share price has dropped by nearly 14%. When Coke reported first-quarter results in April, the stock was up 27% over the previous 12 months. The company reports earnings first thing Tuesday morning.

The company has earned a spot on the Dividend Kings list for having raised its dividend every one of the past 50 years. Coca-Cola’s regular dividend and 78% payout ratio are strong incentives for buying and holding on to the stock.

Analysts are bullish on the stock, with 19 of 26 analysts having a Buy or Strong Buy rating. Another six have a Hold rating. At a share price of around $56.00, the upside potential based on a median price target of $66.00 is 17.9%. At the high price target of $78.00, the upside potential is 39.3%.

Third-quarter revenue is forecast at $10.5 billion, down 7.1% sequentially but 4.6% higher year over year. Adjusted EPS are pegged at $0.64, down 9% sequentially and down by a penny year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $2.45, up 5.8%, on revenue of $42.04 billion, up 8.7%.

Coca-Cola stock trades at about 22.8 times expected 2022 EPS, 22.0 times estimated 2023 earnings of $2.54 and 20.5 times estimated 2024 earnings of $2.73 per share. The stock’s 52-week range is $52.28 to $67.20. Coca-Cola pays an annual dividend of $1.76 (yield of 3.15%). Total shareholder return for the past year was 6.1%.

Enphase

Solar energy component maker Enphase Energy Inc. (NASDAQ: ENPH) has seen its share price jump by about 40% over the past year. Since posting its annual low in late January, the stock is up by nearly 97%. The big boost came in July, and it peaked in mid-September after the company struck a deal with a Munich-based renewable energy company. Shares have dropped more than 20% since then, likely because the impact from the Inflation Reduction Act on Enphase’s revenues is expected to be less than originally believed. The company reports quarterly results after Tuesday’s closing bell.

Brokerages are bullish on the stock, with 20 of 30 analysts having a Buy or Strong Buy rating and nine others rating the shares at Hold. At a share price of around $252.00, the implied gain based on a median price target of $290.50 is about 15.3%. At the high target of $363.00, the upside potential is 44%.

For the third quarter, analysts have forecast revenue of $618.85 million, up 16.2% sequentially and about 75.2% higher year over year. Adjusted EPS are forecast at $1.09, up 2.1% sequentially and by 81.7% year over year. For the 2022 fiscal year, analysts estimate EPS at $4.07, up 69.1%, on revenue of $2.24 billion, up 62.3%.

Enphase’s shares trade at about 61.8 times expected 2022 EPS, 50.3 times estimated 2023 earnings of $4.17 and 41.7 times the estimated 2024 earnings of $6.04 per share. The stock’s 52-week range is $113.40 to $324.84. Enphase does not pay a dividend. Total shareholder return for the past year was 40.2%.

Over the past 12 months, shares of Microsoft Corp. (NASDAQ: MSFT) have dropped about 22% from their share price. Since putting up a 52-week high in late November, the stock is down more than 28%. The company just increased its quarterly dividend to $0.68.

Microsoft recently cut about 1,000 jobs and acknowledged that growth is slowing down. But one thing the Redmond giant does that has set it apart since Satya Nadella took over as CEO is lifting the integration burden on a company’s management by offering a soup-to-nuts cloud experience. Not every application Microsoft has is best-of-class, but as a whole, they are better than good enough.

Sentiment for the stock is virtually all positive. Of 50 analysts covering the stock, 48 have a Buy or Strong Buy rating, and two rate the shares at Hold. At a share price of around $242.10, the potential upside based on a median target of $320.00 is about 32%. At the high target of $411.00, the implied gain is nearly 70%.

For its first quarter of fiscal 2023, revenue at the Dow component is forecast at $49.7 billion, down 4.2% sequentially but up 9.5% year over year. Adjusted EPS are forecast at $2.31, up 3.4% sequentially and by 1.8% year over year. For the full fiscal year ending in June, current consensus estimates call for EPS of $10.08, up 9.4%, on revenue of $219.03 billion, up 10.5%.

Microsoft stock trades at about 24.0 times expected 2023 EPS, 20.5 times estimated 2024 earnings of $11.82 and 17.5 times estimated 2025 earnings of $13.80 per share. The stock’s 52-week range is $219.13 to $349.67. Microsoft pays an annual dividend of $2.72 (yield of 1.12%). Total shareholder return over the past year was negative 21.4%.

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Visa

Another Dow component reporting after markets close Tuesday is credit card issuer Visa Inc. (NYSE: V). Over the past 12 months, the stock price has declined by about 17%. Analysts appear to be expecting a share price increase of around 4% following the earnings report, likely on expected consumer credit card spending as inflation continues to bite. Combined with the strong showing by U.S. banks, the outlook for Visa and rival Mastercard has improved.

Analysts are strongly bullish on the stock, with 29 of 34 brokerages rating the shares at Buy or Strong Buy. The other five have Hold ratings. At a share price of around $190.40, the implied gain based on a median price target of $254.00 is about 33%. At the high price target of $290.00, the upside potential is 52.6%.

For Visa’s fourth quarter of fiscal 2022, revenue is forecast at $7.56 billion, up 3.9% sequentially and 15.2% higher year over year. Adjusted EPS are forecast at $1.87, down 5.8% sequentially and up 15.4% year over year. For the full fiscal year that ended in September, current consensus estimates call for EPS of $7.43, up 25.7%, on revenue of $29.08 billion, up 20.6%.

Visa stock trades at about 25.6 times expected 2022 EPS, 22.9 times estimated 2023 earnings of $8.32 and 19.6 times estimated 2023 earnings of $9.73 per share. The stock’s 52-week range is $174.60 to $236.96. Visa pays an annual dividend of $1.50 (yield of 0.79%). Total shareholder return for the past 12 months was negative 16.7%.

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