Investing

6 Top Dow Earnings for the Week Ahead

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Earnings season for the first quarter is now underway, and 24/7 Wall St. has put together a preview of the top Dow Jones Industrial Average companies that are reporting their quarterly results this week. We included the consensus earnings estimates from Thomson Reuters and the stock price and trading history, as well as added some additional color on each.

For a look at other big earnings in the week ahead, see our top Dow tech and finance earnings.

Be advised that the earnings and revenue estimates may change ahead of the formal reports, and some companies may change reporting dates as well.

Johnson & Johnson

On Tuesday, Johnson & Johnson (NYSE: JNJ) will share its most recent quarterly results. The consensus estimates call for earnings per share (EPS) of $1.65 and $17.47 billion in revenue. With a diverse product base and a very popular and solid brand, this is among the most conservative big pharmaceutical plays. It is one the top market cap stocks in the health care sector and will raise the dividend for shareholders this year for the 53rd consecutive year. It has increased its dividend by 8.8% per year over the past decade and by 7.1% over the past three years.

Shares traded at $110.18 on the close on Friday, in a 52-week range of $81.79 to $110.40. The stock has a consensus analyst price target of $110.68.


UnitedHealth

Also set to share its latest quarterly earnings on Tuesday is UnitedHealth Group Inc. (NYSE: UNH). The consensus estimates call for $1.72 in EPS on $43.96 billion in revenue. This company offers the full spectrum of health benefit programs for individuals, employers and Medicare and Medicaid beneficiaries, and it contracts directly with more than 850,000 physicians and care professionals and 6,000 hospitals and other care facilities. The company offers a broad spectrum of products and services through two distinct platforms: UnitedHealthcare, which provides health care coverage and benefits services, and Optum, which provides information and technology-enabled health services.

Shares were at $127.33 on Friday’s close, in a 52-week trading range of $95.00 to $131.10. The consensus price target is $142.17.

Coca-Cola

Look for Coca-Cola Co. (NYSE: KO) to report its first-quarter results on Wednesday. The consensus estimates call for EPS of $0.44 and $10.28 billion in revenue. This company remains a top Warren Buffet holding and offers not only safety, but an incredible strong worldwide brand. It is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. Led by Coca-Cola, its portfolio features 20 billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade and Minute Maid. Globally, it is the top provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy its beverages at a rate of more than 1.9 billion servings a day.

Shares were changing hands at $46.10 on Friday’s close. The consensus price target is $47.36, and the stock has a 52-week trading range of $36.46 to $47.13.

Verizon

On Thursday, Verizon Communications Inc. (NYSE: VZ) is scheduled to report its first-quarter results. The consensus estimates call for $1.06 in EPS and revenue of $32.51 billion. The company is the top Dog of the Dow for 2016 but also the second best performing Dow stock for the year as well. Verizon barely outperformed the market in 2015, with a 3.6% total return, but that current 4.89% dividend yield was the single driving force. Verizon is still in a price war, but no one expects its business to come apart. It is also cheaply valued at about 10 times forward earnings.

Verizon shares closed at $51.35 on Friday. The consensus price target is $51.81. The 52-week trading range is $38.06 to $54.49.

Caterpillar

Caterpillar Inc. (NYSE: CAT) is expected to share its latest quarterly earnings on Friday. The consensus estimates call for $0.69 in EPS and $9.40 billion in revenue. This company has just come back into favor as the best performing Dow stock for 2016. Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments — Construction Industries, Resource Industries and Energy & Transportation — and it also provides financing and related services through its Financial Products segment.

Shares were at $79.17 on Friday’s close, in a 52-week trading range of $56.36 to $89.62. The consensus price target is $62.89.


McDonald’s

Also on Friday, McDonald’s Corp. (NYSE: MCD) is set to report its first-quarter results. The consensus estimates call for EPS of $1.16 and $5.79 billion in revenue. The fast-food giant has been on fire over the past six months, but it still remains a solid pick for investors seeking dividends and a degree of safety. McDonald’s is the world’s leading global foodservice retailer, with over 36,000 locations serving approximately 69 million customers in over 100 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business persons.

Shares of McDonald’s were changing hands at $127.78 as last week came to a close. The consensus price target is $127.23, and the stock has a 52-week range of $87.50 to $128.74.

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