Stocks to watch for Friday, Oct. 24, 2014: Third-quarter earnings season has been full of surprises - not all of them welcome.
Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) has suffered an approximate $2.7 billion loss since Q3 earnings season kicked off, according to Bloomberg. That's because its "Big Four" equity investments disappointed Wall Street. American Express Co. (NYSE: AXP), Coca-Cola Co. (NYSE: KO), International Business Machines Corp. (NYSE: IBM), and Wells Fargo & Co. (NYSE: WFC) all saw shares slip after reports.
Friday's hot stocks to watch include another Berkshire holding, plus a key auto manufacturer, drug giant, and leading package-delivery company.
Seven Hot Stocks to Watch Friday
Hot Stocks to Watch No. 1: Procter & Gamble Co. (NYSE: PG) will report Q3 results before the open. Analysts expect the global consumer packaged goods giant to post earnings per share (EPS) of $1.08, up from $1.05 in the same quarter a year ago. Whisper numbers are for EPS of $1.11. Legendary investor Warren Buffett could use an earnings beat from this core holding. A number of multinationals that have already reported have gotten sideswiped by a surging U.S. dollar, which typically hampers demand for U.S. exports and reduces the value of overseas sales when they are translated back into U.S. dollars. Buffett holds 52,793.078 PG shares, according to the latest U.S. Securities and Exchange Commission filings. Shares are up 1.55% year to date.
Hot Stocks to Watch No. 2: Ford Motor Co. (NYSE: F) posts Q3 results before Friday's opening bell. Expectations are for Ford to report EPS of $0.22, down from $0.45 in the same quarter a year ago. Revenue is pegged at $33.7 billion, down from $33.9 billion a year ago. Investors will want to hear more about the launch of Ford's redesigned 2015 F-150 light-duty pickup truck. The new truck boasts an all-aluminum body, which makes the vehicle lighter, more fuel-efficient, and smoother to handle. The new F-150s are expected to hit dealerships in December. The mean analyst recommendation on Ford is "Buy." Shares are off 7% year to date.
Hot Stocks to Watch No. 3: United Parcel Services Inc. (NYSE: UPS) reports Q3 numbers Friday morning. Analysts are looking for the package delivery company to post EPS of $1.29, up from $1.16 in the same quarter a year ago. Whisper numbers are for EPS of $1.31. Rival FedEx Corp. (NYSE: FDX) said Wednesday it expects a record holiday shipping season this year. Both companies will hike rates by the start of 2015. UPS said rates for its services within and between the United States, Canada, and Puerto Rico will rise by an average of 4.9%. Analysts like UPS for its revenue growth and notable return on equity. Shares are little changed since the start of the year.
Hot Stocks to Watch No. 4: Colgate Palmolive Co. (NYSE: CL) is scheduled to post Q3 results before the open. Expectations are for the consumer products leader to post EPS of $0.76, up from $0.73 in the same quarter a year ago. Wednesday, Morningstar gave CL an "AA" credit rating and three-star equity rating. CL presently has a consensus analyst rating of "Hold" and a mean price target of $68.33. At $65.32, shares are up a slight 0.3% year to date.
Hot Stocks to Watch No. 5: Bristol-Myers Squibb Co. (NYSE: BMY) reports Q3 results Friday morning. The healthcare giant is expected to report EPS of $0.42, down from $0.46 in the same quarter a year ago. Whisper numbers are for EPS of $0.44. Last week, BMO Capital Markets upgraded BMY to "Outperform." Earlier this month, Morgan Stanley reiterated its "Overweight" rating and $60 price target. Bullish option activity has picked up ahead of Q3 results. At $51.82, shares are off 2.46% year to date.
Hot Stocks to Watch No. 6: Moody's Corp. (NYSE: MCO) will report Q3 numbers early Friday. Analysts expect the rating agency to post EPS of $0.90. Whisper numbers have Moody's beating by a nickel. Last month, Moody's upped its full-year guidance in the range of $3.95 to $4.05. Moody's return on investment (ROI) is 36.10%, while return on equity (ROE) is 256.10%. Analysts rate the stock "Buy" with mean price target of $104. At $94.54, shares are very close to its 52-week high of $95.30.
Hot Stocks to Watch No. 7: NASDAQ OMX Group Inc. (Nasdaq: NDAQ) reports Q3 results Friday morning. The exchange operator is expected to post EPS of $0.70. Deutsche Bank says NDAQ's progress over many years has created a lower-risk, high-recurring revenue business model with solid execution, especially in cost management. The firm also said that the exchange continues to gain traction among investors following an improvement in the company's price to earnings ratio. Shares are up 3% year to date.
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