Monday, July 24, 2017

Here Come the FANGs; Alphabet Reports Today, Facebook and Amazon Later This Week

From Investors' Business Daily:

One FANG, One 95+ Stock: Both 2% Off Buys With Earnings Monday

The Nasdaq composite, S&P 500 index and Dow Jones industrial average will start the week near record highs. Monday is light for earnings, but it does boast quality. Google parent Alphabet (GOOGL) reports after the market close, ahead of fellow FANG stocks Facebook (FB) and Amazon (AMZN) later this week. Cadence Design Systems (CDNS) also is on tap late while IBD 50 stock Hasbro (HAS) releases results before the market open.

The Google parent is expected to deliver earnings of $8.15 a share excluding various items, according to Zacks Investment Research. Some estimates have $8.25. Either way, it would be a slim decline from $8.42 a year earlier. Complicating the earnings report will be a $2.74 billion fine from the European Union.

Net revenue should rise to $20.825 billion, up 19% vs. a year earlier.

While Alphabet gets the vast majority of its revenue in online advertising, cloud computing has become a growth area. Amazon may be looking over its shoulder regarding its dominant Amazon Web Services division in regards to Google and Microsoft (MSFT), which reported booming cloud gains last Thursday.

Alphabet has a Composite Rating of 95, which means it outperforms 95% of all stocks based on a variety of proprietary IBD ratings including earnings. All-time winning stocks often have Composite Ratings of 95 or better near the start of big runs.

Alphabet shares rose 0.1% to 993.35 on Friday stock market trading, about 2% below a new flat-base buy point of 1,008.71. An aggressive investor could see 994.09 as alternative entry.

Alphabet is up 25% in 2017, but that makes it a laggard next to fellow FANG internet giants Amazon (up 35%), Facebook (43%) and Netflix (NFLX) (52%).

Facebook reports earnings on Wednesday while Amazon is due Thursday....MORE