The three major U.S. equity indexes closed higher on Monday after bouncing lower in the early going. The Dow Jones industrials ended the day up 1.34%, the S&P 500 closed 1.19% higher and the Nasdaq rose 0.86%. Nine of 11 sectors closed higher, led by health care (1.91%) and consumer staples (1.79%). Materials and real estate posted losses on the day of 0.62% and 0.09%, respectively.

Tuesday’s main bit of economic news comes after markets open. The Conference Board’s Consumer Confidence Index is expected to slip from September’s reading of 108 to 105.5.

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.

The three major indexes traded lower about half an hour before the opening bell.

After U.S. markets closed Monday, Cadence Design reported that earnings per share (EPS) and revenue came in above estimates. Fourth-quarter guidance met the low end of EPS expectations, while fiscal-year guidance came in above expectations. The stock traded flat in Tuesday’s premarket.

Discover Financial missed the consensus EPS estimate but did beat on revenue. Loan totals were up 17% year over year and 6% sequentially. Total net charge-off rate was 1.71%, up 25 basis points year over year. Thirty-day delinquencies came in at 2.11%, up 63 basis points year over year and 35 basis points sequentially. Shares traded down about 1.3% in Tuesday’s premarket.

Range Resources also missed on EPS but beat on revenue estimates. The company stuck to its flat production target for the year and expects capital spending at around $480 million, the high end of its previously announced range. The stock traded down about 1.4% in Tuesday’s premarket.

Before markets opened Tuesday morning, Coca-Cola beat estimates on both the top and bottom lines. Coke expects to deliver organic revenue growth of 14% to 15% for the full fiscal year. Shares traded up about 2.4%.

UPS reported better-than-expected EPS but missed the consensus revenue estimate. The company reaffirmed fiscal 2022 guidance and shares traded up about 0.5% early Tuesday.

General Electric missed the consensus earnings estimate but easily topped revenue expectations. The company issued in-line guidance and said the spin-off of the health care business is on track for the first week of January. Shares traded up about 1.7%.

General Motors posted better-than-expected revenue but missed on EPS. Inventory is rising slightly, but the company said that the chip shortage is improving. Demand is strong for its full-size trucks. Shares traded up about 3.6%.

Valero Energy beat both top-line and bottom-line estimates, but investors expected more. Shares traded down by about 1%.

Alphabet, Enphase, Microsoft and Visa are also reporting after U.S. markets close Tuesday. Before U.S. markets open on Wednesday, Boeing, Bristol-Myers Squibb and Kraft Heinz will report quarterly results.
Here is a look at four companies set to report results after markets close on Wednesday.

Antero Resources

Independent oil and gas producer Antero Resources Corp. (NYSE: AR) is a major producer of natural gas liquids (NGLs) and natural gas in the Appalachian Basin. Over the past 12 months, the company’s share price has increased by more than 63%. Between January and early June, the stock soared by 300%. From then until early July, the stock plunged by 40%.

NGL prices are currently about 9% lower than a month ago but still almost 22% higher than a year ago. As demand from Europe for natural gas strengthens, Antero and its majority-owned Antero Midstream pipeline to the U.S. east coast should see revenues and profits rise.

Analysts are bullish on Antero stock. Of 16 brokerages covering the company, 11 have a Buy or Strong Buy rating and four rate the shares at Hold. At a recent price of around $33.10 a share, the upside potential based on a median price target of $50.50 is 52.6%. At the high price target of $64.00, the upside potential is almost 94%.

Third-quarter revenue is forecast at $1.98 billion, which would be down 10.2% sequentially but up 271% year over year. Analysts expect Antero to post EPS of $1.88, up 11.6% sequentially and up from $0.19 in the year-ago quarter. For the full fiscal 2022 year, EPS are forecast at $6.13, up 325.5% year over year, on sales of  $6.88 billion, up 48.9%.

Antero stock trades at about 5.4 times expected 2022 earnings, 4.3 times estimated 2023 earnings of $7.68 per share and 5.0 times estimated 2024 earnings of $6.58 per share. The stock’s 52-week trading range is $15.38 to $48.80. The company does not pay a dividend, and total shareholder return for the past year was 63.3%.

EQT

EQT Corp. (NYSE: EQT) is an independent producer of natural gas with holdings of more than 1.7 million gross acres in the Marcellus shale play of Pennsylvania. Last month the company acquired upstream (approximately 90,000 acres in West Virginia) and midstream (95 miles of gathering pipeline) assets for a cash payment of $5.2 billion. EQT’s location near pipelines that deliver natural gas to liquefaction plants on the U.S. east coast has helped push the share price up by nearly 80% since late January.

Analysts are solidly bullish on the stock. Of 22 brokerages covering it, 19 have a Buy or Strong Buy rating and the others rate the shares at Hold. At a share price of around $38.30, the upside potential based on a median price target of $60.00 is 56.7%. At the high price target of $85.00, the upside potential is almost 122%.

Third-quarter revenue is forecast at $1.76 billion, down 30.4% sequentially but up from a loss of $1.46 billion in the year-ago quarter. Analysts expect EQT to post EPS of $1.05, up nearly 27% sequentially and up from $0.12 in the year-ago quarter. For the full fiscal 2022 year, EPS are forecast at $4.67, up about 408% year over year, on sales of  $6.65 billion, up 117%.

EQT stock trades at 8.2 times expected 2022 earnings, 3.7 times estimated 2023 earnings of $10.41 per share, and 4.4 times estimated 2024 earnings of $8.69 per share. The stock’s 52-week range is $17.95 to $51.97. The company pays an annual dividend of $0.60 (yield of 1.42%), and total shareholder return for the past year was 81.4%.

Ford Motor Co. (NYSE: F) has reorganized itself around its electric vehicle (EV) plans. The company shipped 8,760 of its all-electric F-150 Lightning pickups since launching the vehicles in June. In September, Ford sold nearly 4,700 EVs, up nearly 200% year over year.

However, the company’s truck sales have dropped by 18.3% year over year, and total vehicle sales are down 8.9% through the first nine months of the year. Ford is even offering a 3.9% financing deal on new F-150 pickups, the best-selling vehicle in the country for more than 40 years. Ford does not want to be left behind when EVs take over, but investors may not have that much patience.

Analysts remain mixed on the stock, with 10 of 23 brokerages having a Hold rating and 10 more with Buy or Strong Buy ratings. At a share price of around $12.50, the upside potential based on a median price target of $14.00 is 12%. At the high price target of $28.00, the upside potential is 124%.

Third-quarter revenue is forecast at $37.11 billion, down 2.1% sequentially but 11.7% higher year over year. Adjusted EPS are forecast at $0.30, down 55.7% sequentially and by about 41% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $1.99, up 25.2%, on sales of $147.23 billion, up 16.7%.

Ford stock trades at about 6.3 times expected 2022 EPS, 6.8 times estimated 2023 earnings of $1.83 and 6.9 times estimated 2024 earnings of $1.71 per share. The stock’s 52-week range is $10.61 to $25.87. Ford pays an annual dividend of $0.60 (yield of 4.92%). Total shareholder return for the past year was negative 21.3%.

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Meta Platforms

Shares of Meta Platforms Inc. (NASDAQ: META) have plunged by 60% over the past 12 months. The metaverse has taken some big lumps recently, and considering the recent performance of Snap, Meta’s online ad business is not expected to do much either.

Analysts are expecting revenue to fall for the second consecutive quarter, and Altimeter Capital, which held 2 million Meta shares at the end of June, wrote to Meta CEO Mark Zuckerberg recommending a 20% cut in staffing and limiting spending on the metaverse to $5 billion annually. Zuckerberg essentially controls the company and, if the past is any guide, is not likely to pay much attention to any criticism.

Of 55 analysts covering the stock, 39 have a Buy or Strong Buy rating and 14 have Hold ratings. At a share price of around $129.80, the upside potential based on a median price target of $204.00 is 57.2%. At the high target of $466.00, the upside potential is 259%.

Meta is expected to report third-quarter revenue of $27.43 billion, down 23.2% sequentially and 5.4% lower year over year. Adjusted EPS are pegged at $1.89, down 6% sequentially and by 41.3% year over year. For the full 2022 fiscal year, consensus estimates call for EPS of $9.86, down 27.4%, on sales of $1117.18 billion, down 0.6%.

The company’s stock trades at about 13.2 times expected 2022 EPS, 12.0 times estimated 2023 earnings of $10.83 and 10.4 times estimated 2024 earnings of $12.45 per share. The stock’s 52-week range is $122.53 to $353.83. Meta does not pay a dividend, and total shareholder return for the past year was negative 60%.

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