Stocks were trading higher in mid-morning action Wednesday, after opening on a positive note.

The U.S. Energy Information Administration has issued its weekly report on petroleum inventories, noting an increase of 18.2 million barrels in crude oil stocks and a rise of 4.1 million barrels in gasoline stocks. Spot prices dropped briefly but recovered to trade up by around 2% for the day shortly before noon.

Before markets open on Thursday, the Bureau of Labor Statistics will report December’s consumer price index (CPI). The consensus estimates call for no increase in CPI but a jump of 0.3% in core CPI.

After U.S. markets close on Wednesday and before they open on Thursday, KB Home and Taiwan Semiconductor are on deck to report quarterly results.

We already have posted our previews of five of the nation’s largest banks, all set to report quarterly results first thing Friday morning: Bank of America, Bank of New York Mellon, Citigroup, JPMorgan Chase and Wells Fargo.

Here is a preview of three more companies, including a Dow Jones industrial average component, also set to report results before Friday’s opening bell.

BlackRock

The world’s largest investment management firm, BlackRock Inc. (NYSE: BLK), is expected to report assets under management totaling around $8.07 trillion at the end of the December quarter. Included in that total is a 2022 net inflow of some $220 billion into the company’s global iShares ETFs. That is despite the pushback BlackRock has gotten from several U.S. states that have withdrawn more than $3 billion in investments due to BlackRock’s position on ESG investing. At the end of 2021, BlackRock’s assets under management totaled around $10 trillion. The shares are down almost 13% over the past 12 months but have added almost 40% since early October.

Analysts remain bullish on the firm, with 11 of 16 having a Buy or Strong Buy rating and the rest rating the stock a Hold. At a recent share price of around $760.00, the upside potential based on a median price target of $775.00 is about 2%. At the high price target of $1,212.00, the upside potential is 59.5%.

Fourth-quarter 2022 revenue is forecast at $4.25 billion, which would be down by 1.3% sequentially and by 16.8% year over year. Adjusted earnings per share (EPS) are forecast at $8.05, down 15.7% sequentially and 22.7% lower year over year. For the full 2022 fiscal year, analysts forecast EPS of $34.44, down about 12.1%, on sales of $17.77 billion, down 8.3%.

BlackRock stock trades at 22.1 times expected 2022 EPS, 11.6 times estimated 2023 earnings of $35.19 and 19.4 times estimated 2024 earnings of $39.16. The stock’s 52-week trading range is $503.12 to $899.97. Blackrock pays an annual dividend of $19.52 (yield of 2.78%). Total return to shareholders for the past 12 months was negative 11.9%.

Since posting a 52-week high in April, Delta Air Lines Inc. (NYSE: DAL) stock has fallen by more than 17%. The good news is that shares are up by a third over the past three months. The airline announced last week that beginning February 1, Wi-Fi will be available at no charge to all passengers on Delta flights. Along with that announcement, Delta CEO Ed Bastian said he expects a “very, very strong” year for travel in 2023. The airline expects earnings to double in 2023 and revenue to jump 15% to 20% to around $45.5 billion. The company also raised its estimates for December-quarter results.

The stock is a solid buy, based on 18 of 20 analysts’ ratings of Buy or Strong Buy. The other two rate the stock at Hold. At a share price of around $38.30, the upside potential based on a median price target of $45.00 is 17.5%. At the high price target of $81.00, the upside potential is about 111.5%.

For the fourth quarter, the consensus revenue forecast is $12.72 billion, down 9.0% sequentially but up 34.3% year over year. The airline is expected to post EPS of $1.33, down 11.8% sequentially and up more than 500% year over year. For the full fiscal year, analysts are forecasting EPS of $3.06 per share compared to a year-ago loss of $4.08 on sales of $49.99 billion, up 67.2%.

Delta’s stock trades at 12.5 times estimated 2022 earnings, 7.4 times estimated 2023 earnings of $5.20 and 5.6 times estimated 2024 earnings of $6.84 per share. The stock’s 52-week range is $27.20 to $46.27. The company has suspended its dividend payment, and its total return for the past 12 months was negative 7.2%.

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United HealthCare

The country’s largest health insurer, UnitedHealth Group Inc. (NYSE: UNH), has posted a share price increase of around 5.4% over the past 12 months. But shares of the Dow component have been sagging in the first two weeks of 2023 trading, down nearly 7%. The company is a solid, long-term play that delivers consistent returns year in and year out. In the short run, however, the company’s current liabilities are equal to more than 40% of its total assets, suggesting a possible increase in the company’s need for short-term borrowing.

Analysts remain bullish on the stock, with 21 of 26 having Buy or Strong Buy ratings and three more rating the shares at Hold. At a price of around $493.80 a share, the upside potential based on a median price target of $595.50 is 20.6%. At the high target of $650.00, the upside potential is 31.6%.

The consensus estimate for fourth-quarter revenue is  $82.53 billion, up 2% sequentially and by 11.9% year over year. Adjusted EPS are tabbed at $5.17, down about 10.6% sequentially and 15.4% higher year over year. For the full 2021 fiscal year, analysts are forecasting EPS of $22.03, up 15.8%, on revenue of $323.93 billion, up 12.6%.

UnitedHealth stock trades at 22.4 times expected 2022 EPS, 19.8 times estimated 2023 earnings of $24.95 and 17.4 times estimated 2024 earnings of $28.39 per share. The stock’s 52-week range is $445.74 to $558.10. The Dow component pays an annual dividend of $6.60 (yield of 1.35%). Total shareholder return for the past 12 months was 6.7%.

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