Investing

Earnings Previews: Alphabet, Chipotle Mexican Grill, Microsoft, Visa

Alphabet stock trades at 20.7 times expected 2022 EPS, 17.6 times estimated 2023 earnings of $135.59 and 15.6 times estimated 2024 earnings of $153.68. The stock’s 52-week range is $2,230.05 to $3,0042.00. The company does not pay a dividend, and the total shareholder return for the past 12 months is 5.5%.

Chipotle Mexican Grill

Shares of fast-food chain Chipotle Mexican Grill Inc. (NYSE: CMG) have dipped by nearly 2% over the past 12 months. Since reaching a high in late September, the shares have dropped by almost 24%. Last year’s first-quarter sales were hobbled by limited availability of COVID-19 vaccines. This year, sales are expected to improve sharply, but inflation, rising costs and the global economy may have stunted year-over-year growth for the quarter. The situation is not improving much and threatens sales and profits for the rest of the year.

Of 33 analysts following the stock, 24 have a Buy or Strong Buy rating and the other nine rate the shares at Hold. At a share price of around $1,480.90, the stock’s upside potential based on a median price target of $1,900.00 is 28.3%. At the high price target of $2,500.00, the implied upside is 68.8%.

Analysts expect the restaurant chain to post first-quarter revenue of $2.01 billion, up 2.3% sequentially and 15.5% year over year. Adjusted EPS are expected to come in at $5.64, up 1.1% sequentially and 5.2% higher year over year. For full fiscal 2022, analysts are looking from EPS of $31.59, up 24.3% year over year, with revenue up 15.5% to $8.71 billion.

Chipotle’s stock trades at around 46.9 times expected 2022 EPS, 35.4 times estimated 2023 earnings of $41.78 and 28.5 times estimated 2024 earnings of $51.89. The stock’s 52-week range is $1,277.41 to $1,958.55. The company does not pay a dividend. Total shareholder return for the past 12 months was essentially flat.

Microsoft

Over the past 12 months, Microsoft Corp. (NASDAQ: MSFT) has added about 6% to its share price. The Dow Jones industrial stock’s big attraction is its ability to generate cash. In the past four quarters, Microsoft’s operating cash flow totaled $83.9 billion. Free cash flow over that period totaled $60.7 billion. Total cash and investments summed to $125.3 billion at the end of the December quarter. Microsoft can easily handle its proposed all-cash acquisition of Activision Blizzard for around $75 billion and another 10% increase in its dividend wouldn’t cause any pain either.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.