This Week's 5 Important Earnings Charts

Third quarter earnings season is kicking into high gear this week as the major banks report earnings, including the big investment banks like JPMorgan Chase, as well as the big regional banks like KeyCorp.

But in addition to the banks, there will be reports from key industries such as the rails, asset management, semiconductors and energy.

We know business is strong in the AI Revolution stocks, but what about those outside of it?

All 5 Companies Beat Last Quarter

All 5 of these companies beat on earnings last quarter. Four out of the 5 companies have outstanding earnings surprise track records though. Two of them have only missed once in the last 5 years.

It’s not easy to beat every quarter, or almost every quarter, for 5 years. It takes great management that communicates well with the analysts. Everyone has to get on the same page.

Will these companies beat again this quarter?

And what do they see with the economy, the consumer and their businesses?

This Week’s 5 Important Earnings Charts

1. CSX Corp. (CSX)

CSX is the first of the railroads to report earnings. It beat on earnings last quarter but had missed three quarters in a row prior to that.

Earnings of CSX are expected to decline 9.3% this year. CSX isn’t cheap. It trades with a forward price-to-earnings (P/E) ratio of 21.4. A P/E under 15 indicates a value stock.

Will CSX make it two in a row?

2.The Charles Schwab Corp. (SCHW)

Schwab has a great earnings surprise track record. It has beat on earnings 10 quarters in a row.

Shares of Schwab are trading near 5-year highs. Earnings are expected to jump 43% in 2025. Schwab still has an attractive valuation with a forward P/E of 19.8. While not a value stock, it’s also not trading as high as the S&P 500, which is around 23x.

Will Schwab make it 11 beats in a row this week?

3. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)

Taiwan Semiconductor is an earnings all-star. It has only missed one time in the last 5 years and that miss may fall off the chart as it was all the way back at the end of 2020. Exactly 5 years ago.

Earnings of Taiwan Semi are expected to soar 38.8% this year. Taiwan Semi has a forward P/E of 28.7. That’s not cheap but it’s not as stretched as some semiconductor stocks.

Will Taiwan Semiconductor beat again?

4. Bank OZK (OZK)

Bank OZK is a regional bank headquartered in Arkansas with a market cap of $5.6 billion. It’s known as a real estate bank, as it provides construction loans for commercial and residential developments, including condo and apartment buildings.

Bank OZK has an excellent earnings surprise record. It has beat 8 quarters in a row.

The shares are cheap. Bank OZK has a forward P/E of 7.7. A P/E under 10 is considered to be dirt cheap. It also pays a dividend, yielding 3.6%.

Should investors make a bet on the regional banks like Bank OZK this quarter?

5. SLB (SLB)

SLB is a large cap oilfield services company. It has only missed on earnings one time in the last 5 years. But that miss was just 2 quarters ago.

Shares of SLB are down 15.8% year-to-date. It’s cheap. SLB trades with a  forward P/E of just 11. But earnings are expected to fall 15.5% this year.

Is SLB a value or a trap?

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

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This article originally published on Zacks Investment Research (zacks.com).

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