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U.S. stocks on Tuesday searched for direction, as market participants digested a slew of quarterly earnings from major names. The “Magnificent 7” club, which has powered much of Wall Street’s current bull run, will grab eyeballs as some of its members start to report their numbers today. Here are some stocks to watch on Tuesday:
- Shares of Tesla (TSLA) will grab the spotlight after the electric vehicle maker reports Q2 numbers after the closing bell. Investors expect the Elon Musk-led firm to earn 62 cents per share on revenue of $24.74B. Full-year estimates for the Austin, Texas-based company’s core auto business has been revised down recently, but arguably the focus is more on its updates surrounding artificial intelligence (AI), full-self driving, robotaxi, energy storage and the robotic humanoid project Optimus. With growth having stalled in the core auto business, the stakes are high for Tesla (TSLA) to show growth prospects in these other areas.
- Alphabet (GOOG)(GOOGL) stock will garner significant attention as well, with the Mountain View, Calif.-based firm scheduled to announce Q2 results after market close. The Sundar Pichai-led tech behemoth is expected to earn $1.85 per share on revenue of $84.29B. As always, investors will be focusing on advertising sales performance at Alphabet’s (GOOG)(GOOGL) Google and YouTube businesses, along with the advertising budget at the units amid a low spending environment. Focus will also be on the company’s AI efforts, which is seen to lag Microsoft (MSFT) and others in that space.
- Shares of Coca-Cola (KO) gained nearly 1% after the world’s largest soft drinks company smashed Q2 organic sales expectations and raised its annual top- and bottom-line guidance. Coca-Cola’s (KO) organic revenue jumped 15% Y/Y, driven by a 9% jump in average selling prices. The latter metric increased 24% in Europe, Middle East and Africa, partly due to countries in these regions experiencing intense inflation. However, that did little to dent demand for Coca-Cola’s (KO) products. The company has also been involved in a marketing blitz ahead of the start of the Olympics in Paris, having had a 96-year relationship with the quadrennial event.
- Philip Morris International (PM) stock added more than 1.5%, after the cigarette giant set full-year guidance ahead of expectations. One of the biggest takeaways from its Q2 report was the performance of its smoke-free products, with that business accounting for 38.1% of the company’s total quarterly revenue compared to 35.4% a year ago. Philip Morris (PM) said that it had 36.5M estimated adult users of its smoke-free products, up 3.2M from December 2023. The company now sees full-year net revenue growth of 7.5% to 9% on an organic basis, and Q3 adjusted profit per share of $1.77 to $1.82.
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