The three major U.S. equity indexes closed lower on Monday. The Dow Jones industrials ended the day down 0.39%, the S&P 500 closed 0.75% lower and the Nasdaq retreated 1.03%. Ten of 11 sectors closed lower, led by communication services (−1.67%) and tech (−1.34%). Energy (0.6%) posted the only gain.

This week’s economic highlight is the Federal Open Market Committee (FOMC) meeting, which begins Tuesday and concludes with a press announcement on Wednesday. The FOMC is expected to tack on another 0.75% interest rate hike, raising the federal funds rate from a range of 3.00% to 3.25% to a new range of 3.75% to 4.00%. On Friday, the monthly report on nonfarm payrolls is expected to show a gain of 220,000 jobs, down from the September total of 263,000 new jobs. The headline unemployment rate is forecast to tick higher, from 3.5% to 3.6%.

All three major indexes traded close to flat about an hour after Tuesday’s opening bell.

After U.S. markets closed Monday, NXP Semiconductors reported lower-than-expected earnings per share (EPS) but beat the consensus revenue estimate. The Dutch chipmaker also issued downside revenue guidance for the current quarter. Shares traded up 3% early in Tuesday’s regular trading session.

Before markets opened Tuesday morning, BP hammered EPS estimates but missed the revenue estimate by about $6 billion (10%). Lower refining margins and lower prices for liquids got the blame. Shares traded up about 0.2% early Tuesday.

Enterprise Products beat estimates on both the top and bottom lines. Shares traded down about 0.8% Tuesday morning.

Marathon Petroleum also beat top-line and bottom-line estimates. The company has completed a $15 billion buyback program and raised its dividend by 30% to $3.00 annually. Shares traded up 2.5%.

Newmont missed consensus estimates on both the top and bottom lines. The gold miner reaffirmed its fiscal year production estimate of 5.9 million ounces of gold. Shares traded down about 1%.

Sofi Technologies missed the consensus EPS estimate but beat on revenue. The decentralized finance company also issued upside revenue guidance for the fiscal year. Shares traded up 14.8% Tuesday morning.

Uber also missed on profit but beat on revenue. The ride-sharing giant issued strong guidance on gross bookings and adjusted EBITDA. Shares traded up nearly 16%.

After markets close Tuesday, Airbnb, AMD, Devon Energy and Energy Transfer will report quarterly results. Wednesday morning, Cenovus Energy, CVS Health, Norwegian Cruise Lines and Paramount Global are on deck to report quarterly results. Look for Albemarle, Marathon Oil, Qualcomm and Robinhood to post their quarterly results later on Wednesday.

Here is a preview of four companies set to report quarterly results first thing Thursday morning.

Barrick Gold

Over the past 12 months, the price of gold has dipped by about 7.5%. Barrick Gold Corp. (NYSE: GOLD) has seen its share price slide by more than 18% over the same period. The company reported preliminary results last month, and the stock price threatened to set a new 52-week low. The price of gold fell by about $150 an ounce during the quarter, and Barrick’s production was lower sequentially. Barrick’s realized price for copper was 7% to 9% below the industry average, and production costs were higher.
Analysts remain bullish on Barrick stock, with 19 of 24 brokerages having a Buy or Strong Buy rating while the rest have Hold ratings. At a recent price of around $15.00 a share, the upside potential based on a median price target of $21.00 is 40%. At the high price target of $29.00, the upside potential is 93.3%.

Third-quarter revenue is forecast at $2.52 billion, which would be down 11.9% sequentially and 11.0% lower year over year. Adjusted EPS are forecast at $0.12, down 51.5% sequentially and by 50.0% year over year. For the full 2022 fiscal year, estimates call for EPS of $0.84, down 27.2%, on sales of $11.28 billion, down 5.9%.

Barrick stock trades at about 17.8 times expected 2022 earnings, 17.6 times estimated 2023 earnings of $0.86 and 14.8 times estimated 2024 earnings of $1.02 per share. The stock’s 52-week trading range is $13.97 to $26.07. Barrick pays an annual dividend of $0.80 (yield of 5.23%). Total shareholder return for the past year was negative 14.9%.

ConocoPhillips

Over the past 12 months, shares of ConocoPhillips (NYSE: COP) have added almost 70% to their value. As with both Chevron and Exxon Mobil, the rise in the share price of the country’s largest independent oil and gas producer is closely tied to the rising price of oil. QatarEnergy announced Sunday that ConocoPhillips would have a 6.25% interest in the Gulf state’s liquefied natural gas expansion project, joining Shell and TotalEnergies (each with a stake of 9.375%) as the third and final partner.

Of 29 brokerages covering the company, 25 have ratings of Buy or Strong Buy. The rest rate the stock at Hold. At a share price of around $128.60, the upside potential based on a median price target of $132.50 is about 3%. At the high price target of $167.00, the upside potential is about 30%.

For the third quarter, analysts are expecting revenue of $18.23 billion, down 17.1% sequentially but up nearly 57.0% year over year. Adjusted EPS are expected to come in at $3.44, down 12.0% sequentially but 94.4% higher year over year. For the full 2022 fiscal year, Conoco is expected to report EPS of $14.09, up 134.4%, on sales of $77.01 billion, up 59.3%.

Conoco stock trades at about 9.1 times expected 2022 EPS, 9.5 times estimated 2023 earnings of $13.56 and 12.3 times estimated 2024 earnings of $10.43 per share. The stock’s 52-week trading range is $66.06 to $129.99, and the high was posted Monday. The company pays an annual dividend of $1.92 (yield of 1.51%). Total shareholder return for the past 12 months was 79.4%.

Exelon

Regulated electricity and natural gas supplier Exelon Corp. (NYSE: EXC) has seen its share price drop by nearly 28% over the past year. For the year to date, the stock is up about 8.4%, and over the past 12 months, shares have gained nearly 32%. Since Exelon completed the spinoff of its power generation and retail energy business into Constellation Energy in mid-January, the parent utility company’s stock has dipped by about 1.3%, while Constellation’s stock has added more than 125% to its spinoff valuation.
Analysts are more measured on Exelon now that the spinoff is behind the company. Eleven of 18 firms rate the shares at Buy or Strong Buy. At a share price of around $38.80, the upside potential is 12.1% at the consensus price target of $43.50 and around 29% at the high target of $50.00.

For the September quarter, Exelon is expected to report EPS of $0.70, up 60.0% sequentially but down 35.8% year over year, on revenue of $5.69 billion, up 34.2% sequentially and 36.1% lower year over year. For the full fiscal year, analysts have forecast EPS of $2.25, down 20% year over year, on revenue of $18.75 billion, down about 48.4%. The year-ago quarter included the power generation and retail businesses that were spun off in January.

Exelon stock trades at 17.2 times expected 2022 EPS, 16.2 times estimated 2023 earnings of $2.39 and 15.0 times estimated 2024 earnings of $2.58 per share. The stock’s 52-week range is $35.19 to $58.21. The company pays an annual dividend of $1.35 (yield of 3.48%). Total shareholder return for the past year was 4%.

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Peloton

Shares of fitness product maker Peloton Interactive Inc. (NASDAQ: PTON) have declined by 90% over the past 12 months. Shares have added 27% over the past month, however, following the company’s announcement of more staff cuts and a deal with retailer Dick’s Sporting Goods and e-commerce giant Amazon to carry Peloton equipment. In a proxy filing last week, the company revealed a compensation package worth up to $168 million to lure new CEO Barry McCarthy out of retirement.

Analysts remain moderately bullish on the company. Of 30 brokerages covering the shares, 15 have a Buy or Strong Buy rating while another 13 rate the stock a Hold. At a share price of around $9.00, the upside potential based on a median price target of $15.00 is 40%. At the high target of $25.00, the upside potential is about 178%.

For the company’s first quarter of fiscal 2023, ended in September, analysts expect revenue to total $637.07 million, down 6.2% sequentially and by 26.4% year over year. Analysts are also expecting a loss per share of $0.67, better than the $1.32 loss per share in the prior quarter and better than the $1.10 per-share loss in the year-ago quarter. For the full 2023 fiscal year, analysts estimate a loss per share of $2.22 compared to a loss of $4.62 per share in fiscal 2022 on revenue of $3.04 billion, down about 15.1%.

Peloton is not expected to post a profit in 2023, 2024 or 2025. Based on the current share price, the stock’s estimated 2023 enterprise value to sales multiple is 1.4. That multiple drops to 1.2 in 2024 and 1.1 in 2025. The stock’s 52-week range is $6.66 to $92.95, and Peloton does not pay a dividend. Total shareholder return over the past year is negative 90.3%.

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