FAANG ETFs In Focus Ahead Of Q3 Earnings

The FAANG stocks — Facebook (FB - Free Report), Amazon (AMZN - Free Report), Apple (AAPL - Free Report), Netflix (NFLX - Free Report), and Alphabet (GOOGL - Free Report) — are among the winners of the coronavirus pandemic. This is especially thanks to the global digital shift that has accelerated e-commerce for everything ranging from remote working to entertainment and shopping. Now, all eyes are currently on FAANGs ahead of its quarterly results.

Streaming giant Netflix, the first company in the FAANG group to report Q3 earnings, came up with disappointing results on Oct 20. The company registered its weakest subscriber gains in four years and missed the earnings estimate.


Facebook is expected to release its earnings report on Oct 29 after market close. Our proven model predicts reasonable chances of beating estimates for Facebook this time around as it has a Zacks Rank #3 (Hold) and an Earnings ESP of +1.82%. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 increases chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The social media giant has seen positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. However, the current Zacks Consensus Estimate for the yet-to-be reported quarter indicates an earnings decline of 9% from the year-ago reported figure. Revenues are expected to increase 12.2%. Facebook delivered an earnings surprise of 9.11%, on average, in the last four quarters. The stock has a VGM Score of B but belongs to a bottom-ranked Zacks industry (bottom 19%). Shares of FB were up nearly 19% in the past three months.

Facebook, Inc. Price, Consensus and EPS Surprise

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