From Nasdaq:

Next week, five of the ‘Magnificent Seven’ stocks will be reporting Q4 earnings, with high expectations particularly in the technology sector, which is projecting Q4 earnings to be up +18.7% from the same period last year. Amazon, Alphabet, Apple, Microsoft, Nvidia, and Tesla will lead the way in reporting financials.

The ‘Big 7 Tech Players’ – Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) – are expected to report Q4 earnings up +38.3% from last year. Microsoft & Alphabet report Tuesday, followed by Apple, Amazon, and Meta Platforms on Thursday.

Valuation wise, Meta Platforms and Alphabet look appealing, with the lowest valuations among the tech stocks reporting, trading below their five-year median valuations of 23.3x and 24.2x respectively. Amazon has the highest valuation, but also the highest expected EPS growth at 28.5% over the next 3-5 years.

In the energy sector, Q4 earnings are expected to decline, with sectors like Autos, Basic Materials, Medical, Energy, and Transportation expected to experience the biggest earnings declines. Exxon Mobil and Chevron will report earnings on Friday, offering reasonable valuations of ~10x forward earnings and paying hefty dividends of 4% and 3.7% respectively.

The energy and technology sectors offer two very different outlooks regarding earnings, yet both may be appealing based on valuations. Because they are such critical and leading industries in the country, discerning investors would be wise to hold some mix of the stocks shared.



Read more: Earnings Countdown: Mega-Cap Stocks Take the Stage Next Week