• Tesla, Alphabet earnings, and extra Trump tariff information will likely be in focus this week.
• Philip Morris stands out as a purchase, pushed by its robust smoke-free product development and a promising earnings report.
• Boeing faces important headwinds from the U.S./China commerce warfare and operational challenges, making it a inventory to promote.
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The inventory market ended blended in uneven buying and selling on Thursday, with the most important averages ending the holiday-shortened week decrease as tariffs continued to fret buyers. Wall Road stayed closed on Friday for the Good Friday vacation.
The declined 2.7%, the fell 1.5%, whereas the tech-heavy slumped 2.6%.
Supply: Investing.com
Extra volatility might be in retailer within the week forward as buyers proceed to evaluate the outlook for the financial system, rates of interest and company earnings amid President Trump’s commerce warfare.
The primary quarter earnings season shifts into excessive gear, with experiences anticipated from Tesla (NASDAQ:) and Google-parent Alphabet (NASDAQ:) – two of the so-called Magnificent Seven megacap corporations.
Different high-profile corporations on the agenda embody Intel (NASDAQ:), IBM (NYSE:), Boeing (NYSE:), GE Aerospace (NYSE:), AT&T (NYSE:), Verizon (NYSE:), T-Cell (NASDAQ:), Comcast (NASDAQ:), Lockheed Martin (NYSE:), RTX (NYSE:), Northrop Grumman (NYSE:), American Airways (NASDAQ:), Southwest Airways (NYSE:), Procter & Gamble (NYSE:), Philip Morris (NYSE:), Pepsico (NASDAQ:), Chipotle Mexican Grill (NYSE:), and Merck (NYSE:).
In the meantime, in a data-light week, a lot of the focus will fall on jobless claims, sturdy items, and new dwelling gross sales figures.
Supply: Investing.com
No matter which course the market goes, beneath I spotlight one inventory prone to be in demand and one other which might see contemporary draw back. Keep in mind although, my timeframe is only for the week forward, Monday, April 21 – Friday, April 25.
Inventory To Purchase: Philip Morris
Philip Morris, the tobacco big, is poised for a robust earnings beat when it delivers its first quarter replace earlier than the market opens on Wednesday at 6:55AM ET. In accordance with the choices market, merchants are pricing in a swing of about 6% in both course for PM inventory following the print.
It must be famous that Philip Morris has persistently crushed earnings expectations, surpassing consensus estimates in every of the final 4 quarters. The corporate’s strategic pivot in the direction of smoke-free options, notably the Zyn nicotine pouch and IQOS heated tobacco merchandise, has been instrumental in driving development.
Supply: InvestingPro
Analysts forecast adjusted earnings per share (EPS) of $1.61, marking a 7.3% enhance year-over-year, with revenues projected at roughly $9.14 billion, up 4% from the prior yr.
This optimism is essentially fueled by the corporate’s strategic shift in the direction of smoke-free merchandise, notably the Zyn nicotine pouch, which has gained reputation and is seen as a key driver for income development via the tip of the last decade. IQOS, its heated tobacco gadget, additionally continues to carry out nicely, with cargo development anticipated to stay in double digits.
The corporate’s smoke-free transformation is a long-term development driver, with over $14 billion invested in growing these merchandise since 2008.
Given its robust fundamentals, I imagine that Philip Morris will reaffirm its full-year 2025 adjusted EPS forecast of $7.04 to $7.17, indicating robust confidence in sustained development.
Supply: Investing.com
Shares of Philip Morris have been on a tear, hitting a collection of report highs in current periods, and the robust technical alerts throughout a number of timeframes recommend continued upward momentum.
PM closed at $163.21 on Friday, incomes the tobacco firm a valuation of $254 billion. The inventory is up 35.6% year-to-date in 2025, rating it in the direction of the highest of the S&P 500 index.
It’s value mentioning that InvestingPro’s AI-powered fashions fee Philip Morris with a ‘GOOD’ Monetary Well being Rating of three.1 out of 5.0, with notably robust metrics in revenue (4.22) and value momentum (4.52).
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Inventory to Promote: Boeing
In distinction, Boeing finds itself in a precarious place because it will get set to launch its first quarter earnings report on Wednesday at 7:00AM ET. As one of many largest U.S. exporters and a key participant within the aerospace business, Boeing is dealing with important headwinds from the U.S.-China commerce warfare.
Latest experiences that China has ordered its airways to not take additional deliveries of Boeing’s jets add one other layer of complexity to the corporate’s challenges. This transfer is a major blow contemplating China represents an important marketplace for the corporate.
As might be anticipated, an InvestingPro survey of analyst earnings revisions level to mounting pessimism forward of the print, with 11 of the 12 analysts protecting Boeing revising their EPS estimates downward previously 90 days.
Supply: InvestingPro
Wall Road sees Boeing dropping -$1.28 per share for the quarter, in comparison with a lack of -$1.13 in the identical quarter final yr. In the meantime, income is anticipated to rise 19.8% year-over-year to $19.8 billion.
Boeing continues to grapple with manufacturing delays, high quality management issues, and ongoing authorized challenges associated to its 737 MAX plane, which have broken its repute. Furthermore, the continuing money burn stays a crucial concern for buyers, a stark reminder of the monetary pressure the corporate is below.
The corporate has not booked an annual revenue since 2018, dropping $35.7 billion over the previous six years.
Conserving that in thoughts, Boeing CEO Kelly Ortberg is prone to strike a cautious tone concerning the corporate’s fiscal 2025 outlook. Market contributors predict a large swing in BA inventory after the print drops, based on the choices market, with a attainable implied transfer of 6.5% in both course.
Supply: Investing.com
BA inventory ended Friday’s session at $161.90, valuing the aerospace big at $121.8 billion. Shares, that are buying and selling beneath their key transferring averages, are down 8.5% in 2025, reflecting investor issues over the corporate’s operational and geopolitical headwinds.
Bear in mind that Boeing’s monetary well being has deteriorated to a ‘WEAK’ total rating of 1.33, with notably regarding metrics in money move (1.05) and development (1.14).
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Disclosure: On the time of writing, I’m quick on the S&P 500 and through the ProShares Brief S&P 500 ETF (SH) and ProShares Brief QQQ ETF (PSQ).
I usually rebalance my portfolio of particular person shares and ETFs based mostly on ongoing danger evaluation of each the macroeconomic atmosphere and firms’ financials.
The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.