Four Dow components set to release earnings on Tuesday
We are in the heart of earnings season at this point and a number of earnings reports are coming out each day. This coming Tuesday we will get earnings results from four companies that are members of the Dow 30—McDonalds (NYSE: MCD), Procter & Gamble (NYSE: PG), Travelers Companies (NYSE: TRV), and United Technologies (NYSE: UTX).
Rather than breaking down each stock one by one, I thought tables would make it easier to compare how the companies are expected to do for this quarter and how they each stack up with their Tickeron Fundamental Ratings. I took the liberty of highlighting particular stats that are positive (green highlight) and ones that are a concern. We see that Travelers is expected to see an earnings decline for this quarter while the other three are expected to report earnings growth.
United Technologies has the best valuation rating of the bunch with Travelers just behind it, McDonalds and Procter & Gamble both have Profit vs. Risk ratings that are in the top quartile, while Procter & Gamble has the only P/E growth rating that is in the top quartile. In fact P&G’s P/E growth rating is in the 95th percentile.
In addition to looking at the ratings from Tickeron, I also looked at some of the ratings from Investor’s Business Daily. We see that P&G and United Technologies have Composite Ratings in the 80th percentile, while all four have EPS ratings in the 60 to 80 range. On the Relative Price Strength Rating, Travelers lags the other three. The SMR ratings (Sales, Profit Margin, and ROE) show that United Technologies is a grade above P&G while Travelers has been average.
Sentiment on the four shows that McDonalds buy percentage is average at 74.2% and United Technologies’ buy percentage is above average at 78.9%. Procter & Gamble’s buy percentage is below average at 52.2% and Travelers’ buy percentage is well below average at only 13%.
None of the four have a very high short interest ratio, but Procter & Gamble’s is slightly above average while McDonalds and United Technologies both have ratios that are slightly below average.
Looking at the weekly charts of the four stocks, McDonalds and Travelers both show weekly stochastic readings that are approaching oversold territory. Procter & Gamble and United Technologies both have stochastics that just below overbought levels. Out of the four charts, Procter & Gamble’s was the most impressive.
The stock has been trending higher within a trend channel for the last 18 months and the slope of the channel is incredibly steep. The stock has seen a little selling in the last three weeks and that was enough to bring the stock down to the lower rail of the channel.
Taking all of the information above in to account—the Tickeron ratings, the IBD ratings, the sentiment, and the charts—I like Procter & Gamble the best of the four. It has a good Profit vs. Risk rating and the best P/E Growth rating from Tickeron. It has the best composite rating from IBD and the EPS rating and SMR rating are solid as well. The sentiment toward the stock shows some signs of pessimism with a low buy percentage and an above average short interest ratio. All of those things suggest to me that Procter & Gamble could continue the impressive rally.
Momentum Indicator for MCD turns negative, indicating new downward trend
MCD saw its Momentum Indicator move below the 0 level on July 25, 2024. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 95 similar instances where the indicator turned negative. In of the 95 cases, the stock moved further down in the following days. The odds of a decline are at .
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of food restaurant chain
Industry Restaurants