4 tech giants look cheap ahead of earnings

Name: 4 tech giants look cheap ahead of earnings
Uploaded: 2019-01-29T02:38:00Z
Description: It's a full week of earnings, with Apple, Amazon, Facebook, and Microsoft all trading in 4-star range ahead of their reports.

It's a full week of earnings, with Apple, Amazon, Facebook, and Microsoft all trading in 4-star range ahead of their reports.

Jeremy Glaser

29 January 2019

Mentioned: AT&T Inc (ATT), Apple Inc (AAPL), Amazon.com Inc (AMZN), Caterpillar Inc (CAT), Chevron Corp (CVX), Meta Platforms Inc (META), Mastercard Inc (MA), McDonald's Corp (MCD), 3M Co (MMM), Merck & Co Inc (MRK), Microsoft Corp (MSFT), Visa Inc (V), Verizon Communications Inc (VZ), Exxon Mobil Corp (XOM)

Jeremy Glaser: Earnings continue in full force this week.

Apple sent shock waves through the market earlier this month when the iPhone maker issued revised revenue guidance on the back of weakness in China. They will release full results on Tuesday, and Abhinav Davuluri sees shares as undervalued today.

Analyst R.J. Hottovy thinks Amazon is also undervalued ahead of its earnings report. He believes the disruptive firm will keep finding new sources of cash flow and continue to grow at an impressive clip, even if profitability won't always be predictable.

Microsoft has been on a roll recently, reporting broad-based strength across its businesses. Analyst Andrew Lange sees Office 365, Azure, and LinkedIn as major drivers with contributions from Xbox gaming, Surface, and Dynamics. Shares are currently trading at a discount to Lange's fair value estimate.

Our long-term view on Facebook remains bullish, despite the recent string of bad headlines. Ali Mogharabi is confident the firm will maintain its competitive advantages and remain one of the premier digital advertising players. They report on Wednesday.

Other earnings this week include McDonald's, oil majors Chevron and Exxon Mobil; Visa and Mastercard; telecoms Verizon and AT&T; Merck, Caterpillar, and 3M.

Stay tuned for our take on these stories.

AUTHOR

Jeremy Glaser
Jeremy Glaser is the Markets Editor for Morningstar.com.

Securities mentioned

	Last	$ Change	% Change
AT&T Inc ATT		—	—
Apple Inc AAPL	$165.00	2.04	-1.22%
Amazon.com Inc AMZN	$174.63	4.59	-2.56%

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