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Special Report

Notable Earnings This Quarter

Our analysts share their outlooks and insights on the top companies from each sector.

No one can predict the future--and that most certainly rings true for the stock market. However, investors can use quarterly earnings reports as a glimpse into how well a company could perform and align with their long-term expectations.  

When there is a price drop, plunge in sales, or other unfavorable update on a company's quarterly earnings report, investors do not need to sound the alarms and flee. One misstep does not mean the long-term picture is completely askew--it is just one of the many blips every company encounters along the way. 

Our stock analyst updates can provide investors with some short-term guidance as they plot the trajectory of their investments. Find out how these stocks are shaping up based on this quarter's earnings reports: 

Technology
Nvidia’s Gaming and Cloud Bolster Q3; FVE up to $340
Nvidia NVDA reported impressive third-quarter results with revenue exceeding the high-end of management’s guidance.

Cisco Controlling Costs and Demand Up; Maintain $48 FVE
With Cisco more positive about the demand environment ahead, shares increased over 7% after reporting. We are maintaining our $48 fair value estimate and believe shares are undervalued.

Uber’s Delivery Network Effect Continues to Strengthen
We continue to be impressed with the gradual improvement in the mobility business and are raising our fair value estimate.

Apple’s Mac and iPad Sales Remain Bolstered in Q4
We are raising our fair value estimate for narrow-moat Apple to $85 per share from $71 as we incorporate a stronger near-term outlook for the Mac and iPad segments due to ongoing work- and learning-from-home dynamics.

AMD to Buy Xilinx; Enjoys Sharp Q3 Sales Growth
AMD reported strong third-quarter results that exceeded our expectations led by PC, server, and game console growth. The firm also announced it will purchase narrow-moat Xilinx in an all-stock transaction valued at $35 billion.

Microsoft Reports Material Upside; Raise FVE to $235
A variety of generally minor model refinements drive our Microsoft fair value estimate to $235 from $228 per share. We still see more than 10% upside to this high-quality wide-moat name.

Intel's Q3 Highlights Competitive Pressures
This wide-moat company's long-term future is still promising as we view shares as undervalued.

Why We Like Intel’s Move to Divest Its Memory Business
We continue to view shares as undervalued for the wide-moat company.

Red Hat Still a Bright Spot for IBM Amid COVID-19
IBM continued to refrain from publishing an outlook for the quarter or full year, but we expect the final quarter will see strong sequential growth due to IBM’s seasonality despite another expected quarter of annual declines. We’ve also increased our expectations for the year, leading us to raise our fair value estimate for the narrow-moat name to $125 per share from $120.

Watch: Tech Bridged Gaps Created by Coronavirus
And what we expect from October.

Financial Services
Unrealized Investment Gains Lift Berkshire's Q3 Results
We do not anticipate making any major changes to our share fair value estimate.

The Pandemic Remains a Problem for Visa
The company finished the fiscal year roughly in line with our expectations, and we will maintain our fair value estimate and wide moat rating.

Strong Flows and Market Gains Lift T. Rowe Price
We're likely to raise our fair value estimate for the asset manager.

Pandemic Continues to Weigh on Mastercard
We plan on maintaining our fair value estimate and wide moat rating.

Recent Deals to Bolster Morgan Stanley’s Earnings
We don’t anticipate making a material change to our $56 fair value estimate for Morgan Stanley and assess shares as fairly valued.

Record Client Assets Offset Pressure at Schwab
We don't anticipate on changing our fair value estimate for the wide-moat company, and we assess the shares as undervalued.

Disappointing Net Interest Income for Wells Fargo in Q3
We’re hoping that fourth quarter results will show a bottom for net interest income, and that a gradual recovery in fees will continue for Wells. Regarding expenses, management said it will give more details on the next call. After updating our projections with the latest results, we are decreasing our fair value estimate to $45 per share from $46.

B of A's Net Interest Income Under Heavy Pressure
Despite uncertainty regarding economic outlook and future credit developments, we are maintaining our fair value estimate for the wide-moat firm.

JP Morgan's Fee Income Stays Strong in Q3
We plan to increase our fair value estimate to $112 for this wide-moat bank.

Revenue Under Pressure for Citigroup
After updating our projections for the latest quarterly results, we decrease our fair value estimate to $68 per share from $71 per share.

Inflows and Market Gains Lift BlackRock's Q3

We're raising our fair value estimate to $620 for the wide-moat asset manager.

Industrials 
What Will It Take for Belief in GE's Comeback?
Narrow-moat General Electric surpassed our expectations year to date on its top line, earnings per share, and industrial free cash flow.

Boeing Progress Toward 737 MAX Return to Service in Q3
We are slightly reducing our fair value estimate for Boeing to $260 per share from $264 as management indicated they do not expect to return to free cash flow positivity until 2022 due to a buildup of 787 inventory.

Signs of Life in 3M’s Portfolio; We Raise Our FVE
We raise our fair value estimate to $180 per share, from $166 previously. It is our hope that the company continues to deliver on growth once again and re-earn both its premium multiple and reputation as a reliable short-cycle business, whose stocks are best to buy in the early parts of the cycle.

Delta Offers Value for Investors With Strong Stomachs
We are modestly raising our fair value to $43 per share from $42.50 after adjusting our model for quarterly results. We see the stock as the best value in our U.S. airline coverage.

Consumer Defensive
Walmart’s Sales Still Strong Amid Pandemic
Its refocused international portfolio is a long-term benefit to the wide-moat company.

Stellar Quarter for Anheuser-Busch, Though Risk Remains
The wide-moat brewing company had an encouraging performance in the third quarter. We retain our fair value estimate.

Recovery for Coke Will Be Prolonged
We don’t plan to change our $54 fair value estimate for the wide-moat company.

P&G's Lofty Trajectory Won’t Always Persist
We intend to edge up our $111 fair value estimate, but we don’t believe investors should rush to stock up on this wide-moat name.

Watch: Tap Into This Cheap Beverage Maker
In the somewhat frothy consumer defensive sector, alcoholic beverage producers look cheap.

Consumer Cyclical
Macy's Still Faces Uncertainty in Holiday Season
Although the no-moat retailer performed better than expected in the third quarter, holiday concerns remain.

Stay-at-Home Spending Continues to Benefit Home Depot
 
We expect to modestly increase its $200 fair value estimate.

McDonald's Set for Market Share Gains
We plan a modest raise to our McDonalds $225 fair value estimate based on more optimistic near-term top and bottom line results and see shares as slightly undervalued.

How Starbucks is Positioned for Growth
With new restaurant formats and operational efficiencies, we think Starbucks is poised for profitable market share gains in the years to come. We plan to raise our fair value estimate.

Acceleration Across Amazon's Services Portfolio
The natural question investors might be asking is how much of wide-moat Amazon's recent momentum is tied to pandemic demand and how much reflects structural changes?

Ford Rebounds From Pandemic With Strong Q3, Q4 Won't Be
Ford had a strong third quarter with adjusted diluted EPS of $0.65 up 91% year over year and far ahead of the $0.19 Refinitiv consensus. We are raising our fair value estimate to $13 from $8.

Tesla Remains Profitable; Generates Good Q3 Cash Flow
 
After taking Tesla out from under review as explained in our Oct. 19 note to upgrade its moat to narrow from none, our new fair value estimate is $319.

 

Healthcare
CVS Announces CEO Transition and Boosts 2020 Outlook
We still view shares as undervalued.

AbbVie Posts Strong Q3, Buoyed by New Immunology Drugs
We continue to see the company as undervalued and maintain our narrow moat rating.

Lowering Our Gilead FVE to $75 After Q3
We have once again lowered our fair value estimate for Gilead, and now value the firm at $75 per share following third-quarter earnings.

Pfizer Faces Modest Pressures in Q3
The wide-moat drug manufacturer plans to release key data on COVID-19 vaccine shortly.

Merck Posts Strong Third Quarter
We continue to view Merck as undervalued, with the market not fully appreciating the firm’s strong immuno-oncology platform.

UnitedHealth Reports Strong Q3, Conservative on 2021
Despite a conservative 2021 outlook, we're maintaining our fair value estimate for the narrow-moat company.
 
Despite Pausing Drug Trials, J&J Reports Strong Quarter
The wide-moat company reported above our expectations, and we expect to slightly increase our fair value estimate.

Watch: Healthcare Sector Adjusts to Pandemic's Pressures
And four companies we like right now.

Communication Services
Disney Finishes Difficult Fiscal 2020 With Strong Q4
Disney ended a challenging fiscal 2020 on a strong note. We maintain our wide moat and plan to modestly increase our $127 fair value estimate when we update our model.

Google Search Ads Returns to Growth; Alphabet Executes
With the better-than-expected third-quarter results and increasing confidence in digital ad demand, we have increased our projections

Facebook Posts Strong Quarter But Cautious About 2021
We are increasing our fair value estimate and view the wide-moat stock as fairly valued.

AT&T Posts Strong Wireless Results in Q3
We don’t expect to materially change our $37 fair value estimate or narrow moat rating; we believe the stock is attractive.

Verizon Bounces Back in the Third Quarter
We consider shares fairly valued for the narrow-moat company.

Netflix Misses on Q3 Customer Adds
Subscriber growth at Netflix in third quarter came in below our estimate and management’s forecast.

Energy
Chevron's Cash Flow Falls Short; No Dividend Concerns
We don't expect a material change our $111 per share fair value estimate.

Losses Continue for Exxon in Q3; Dividend Is Safe
Despite three consecutive quarterly losses, we're maintaining our $74 fair value estimate and narrow moat rating.

Enterprise Still Attractive While Waiting for Recovery
Our fair value estimate and moat rating remain the same, but we have increased our 2020 and 2021 forecasts to reflect a better-than-expected recovery.

Watch: Coronavirus Zapped Energy Stocks
When will crude oil recover?