An earnings report from United Parcel Service UPS is a key item to watch this week, according to market strategist Jay Woods, who spoke to Benzinga about the multiple companies reporting earnings.
What Happened: Several large-cap companies will report earnings for the week, including two members of the Magnificent Seven (Alphabet, Tesla).
Freedom Capital Markets Chief Global Strategist Woods highlighted Alphabet Inc GOOG GOOGL and Tesla Inc as two of the biggest stocks to watch and the companies everyone will be talking about.
For an under-the-radar earnings report investors should be watching, Woods named UPS.
"UPS will give us a little more pulse on what's driving this market," Woods told Benzinga.
The market strategist said UPS shares have struggled along with the overall transports sector, all while FedEx Corporation FDX shares are hitting new highs.
Woods said he wants to see if there can be more broadening in performance when it comes to UPS.
A strong earnings report from UPS could help the overall transports and shippers sector and also serve as a guide for the overall health of the economy and markets.
UPS will report second-quarter financial results before market open Tuesday. Analysts expect the company to report $1.99 in earnings per share and $22.18 billion in revenue, compared to $2.54 and $22.06 billion respectively in last year's second quarter, according to data from Benzinga Pro.
UPS shares are down 22.6% over the last year and down 8.4% year-to-date, compared to FedEx shares up 16.1% over the last year and up 21.1% year-to-date.
Alphabet Also in Focus: Woods also highlighted Alphabet as one of the top stocks to watch, with earnings set for after the market closes Tuesday.
Woods said the stock is breaking out to new highs and has several items investors should be watching.
The market strategist said there still hasn’t been an official acquisition announcement from Google on reports it is eyeing cloud security firm Wiz. Woods said an official announcement could come alongside earnings.
Another key for Alphabet is its ownership of YouTube, which Woods called a "giant."
"What a deal they got on YouTube," Woods told Benzinga.
He praised the streaming growth of YouTube and its live sports segment, including NFL Sunday Ticket.
"They're just continuing to crush the competition there."
Woods also brushed off concerns that the appointment of Senator J.D. Vance (R-Ohio) as Donald Trump's running mate could lead to a forced break-up of Google.
"Trump is going to be the one riding this train."
The market strategist noted that Trump has supported deals that President Joe Biden has opposed. Woods said he believes a Trump administration would not prioritize breaking up Google or other major tech companies.
However, the market strategist noted that it's worth watching, as big tech companies could potentially benefit from splitting off assets.
Read Next:
Photo: Benzinga and Midjourney
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
