FAANG ETFs In Focus Ahead Of Q4 Earnings

After being beaten down badly in the final quarter of last year, the so-called FAANG stocks — Facebook (FB - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Netflix (NFLX - Free Report) and Alphabet (GOOGL - Free Report) — regained strong momentum. Per Zacks, FAANG stocks have climbed in double digits so far this year.

Streaming giant, Netflix, the first company in the FAANG group to report Q4 earnings on Jan 17, disappointed investors as its shares dropped nearly 15% in after-market trading, following bleak guidance. The other four members are due to report this week and the next.


Facebook is expected to release its earnings report on Oct 30 after market close. It has a Zacks Rank #3 (Hold) and an Earnings ESP of -3.32%. According to our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3, when combined with a positive Earnings ESP, increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The social media giant has witnessed no earnings estimate revision for the to-be-reported quarter over the past month and has an expected earnings decline of 1.4%. However, Facebook has delivered positive earnings surprises in the last four quarters, with an average beat of 14.12%. Revenues are expected to grow 26.2% for the quarter. The stock has a solid Growth Score of B and belongs to a top-ranked Zacks industry (top 33%). Shares of FB have increased 13.6% so far this year. The company is expected to report on Jan 30.


Amazon, slated to report on Jan 31 after market close, has a Zacks Rank #3 and an Earnings ESP of +11.36%. The stock has seen negative earnings estimate revision of a penny over the past 30 days for the fourth quarter and the Zacks Consensus Estimate indicates a year-over-year increase of 153.7%. Analysts declining estimates right before earnings — with the most up-to-date information possible — is a bad indicator for the stock.

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