U.S. Stocks To Watch This Week

How Much Damage Was Done To Airlines?

Delta Air Lines will report its earnings on April 22, 2020 before the market open. The airlines got hit especially hard during the current coronavirus crisis since international travel was mostly halted around the world while domestic travel took a huge hit.

In this environment, it is especially interesting to hear what airlines have to say about their perspectives. Early indications paint a bleak picture: United Airlines stated that its revenue fell 17% in the first-quarter. The company expects to cut capacity by 90% in May and believes that similar cuts will be implemented in June 2020.

Airline stocks have suffered materially during the current crisis but they still have plenty of market capitalization. Any indication of increased financial problems may lead to a material downside move across the whole sector.

Chipotle Mexican Grill Upside Will Get Tested

At the low point of the previous downside move, shares of Chipotle Mexican Grill traded as low as $415. After this, the shares had a mighty rebound and are currently trading above $800.

Chipotle Mexican Grill will report its results on Tuesday, April 21, after the market close. Analysts expect that the company’s earnings will reach $2.66 per share in the first quarter, dip to $0.25 per share in the second quarter and then rebound to $3.05 per share in the third quarter.

These aggressive earnings estimates, which imply that the impact of the current coronavirus will be limited to the second quarter, are the reason behind Chipotle’s mighty comeback.

In case the earnings report and the subsequent earnings call paint a bullish picture for the earnings recovery, the company’s shares may have even more upside.

Will Nefflix Continue Its Upside Move?

Shares of Netflix proved to be a safe haven asset during the current crisis and are currently trading near all-time highs. Investors and traders are optimistic about the company’s perspectives as they expect a boost to the company’s subscriber base as people are forced to stay at home.

The company’s share price performance will get tested on Tuesday, April 21, when it will report its results after the market close. Analyst consensus calls for earnings of $1.64 per share and does not anticipate any material decrease in performance in the second quarter.

The magnitude of the recent upside move sets the bar high – any weakness in the report may cause a sell-off.