5 Stocks Likely to Gain on Earnings This Week

The fourth-quarter 2022 earnings season is gradually gaining momentum. This week is the first big one of this reporting cycle. The season will be important as market participants will closely monitor any sign of earnings, revenues or margin decline.

A large section of economists and financial experts are concerned that the U.S. economy may face at least a mild recession in 2023 with a higher interest rate regime and tighter monetary control adopted by the Fed.

Nevertheless, five large-cap companies are set to beat Q4 2022 earnings results next week. These are Nucor Corp. NUE, American Airlines Group Inc. AAL, International Business Machines Corp. IBM, SAP SE SAP and Rockwell Automation Inc. ROK.

Q4 2022 Earnings Results So Far

As of Jan 20, 55 S&P 500 companies reported their earnings results. Total earnings of these companies are down 10.8% year over year on 7.4% higher revenues with 67.3% beating EPS estimates and 67.3% beating revenue estimates. Our current projection shows that for fourth-quarter 2022, total earnings of the S&P 500 Index as a whole are expected to decline 7.4% year over year on 4% higher revenues.