The huge week of earnings really kicks off tomorrow in what will be a blockbuster day that also includes the FOMC decision. Today, there are a few names that could highlight macroeconomic trends.
The main one is payments giant Visa.
Estimates are for $10.618 billion in revenue and $3.08 per share in earnings. Shares trade at 27x next year’s projected earnings but that drops to 18x on 2029 estimates. Looking at the long term, you can see the company growing earnings from $2.84 in 2016 to more than that per quarter.
There is some consolidation on the chart after a big run last year and upbeat numbers could drive a breakout. You can see why the company became a hedge fund favorite.
Visa shares, daily $V
Moreover, Visa could offer up some clues on the strength of consumers and spending.
Other macro views could come from travel giant Booking Holdings and Caesars as travel is a good macro confidence indicator.
yesterday, we heard from appliance giant Whirlpool and the numbers on consumer spending weren’t great.
“On a year-to-date basis, the overall industry sell-through… is somewhere between 0 and plus 1%,” executives said on the call. They highlighted US housing undersupply but that’s a theme that’s been on the radar for years and has been difficult to time. If the Fed cuts deeper though, it would be a big winner.
