Wall Street Earnings

Earnings Calendar Quiet Next Week: What to Expect in the Markets in 2022

With stocks heading into what has historically been a good time of year for stocks, investors will carefully monitor the latest news on the rapidly spreading Omicron coronavirus variant to see how it affects the U.S. economy and company earnings in 2022. The following is a list of earnings slated for release December 27-31, along with a few previews. Although next week’s earnings are unlikely to have much of an effect on major market movements, it is sufficient to gauge investors’ sentiment.

Earnings Calendar For The Week Of December 27

Monday (December 27)

QIPT Quipt Home Medical $0.01


Tuesday (December 28)

CALM Cal-Maine Foods $0.28
NEOG Neogen $0.17


Wednesday (December 29)

FCEL Fuelcell Energy $-0.02
NG Novagold Resources $-0.03


Thursday (December 30)

CRON Cronos Group $-0.09
IBRX ImmunityBio $-0.2
SAFM Sanderson Farms $3.8
MKC McCormick $0.8


Friday (December 31)

No major earnings are scheduled for release.

What to Expect in the Markets in 2022

The year 2021 is drawing to a close and analysts and investors are already looking forward to the year 2022. In a year in which the S&P 500 has returned more than 15% for the third straight year, investors have to wonder whether there will be any more upside in the stock market over the coming year.

“We expect solid economic and earnings growth in 2022 to help U.S. stocks deliver additional gains next year. If we are approaching—or are already in—the middle of an economic cycle with at least a few more years left (our view), then we believe the chances of another good year for stocks in 2022 are quite high. We believe the S&P 500 could be fairly valued at 5,000–5,100 at the end of 2022, based on an EPS estimate of $235 for 2023 and an index P/E between 21 and 21.5,” noted Ryan Detrick, CMT, Chief Market Strategist, LPL Financial.

“Prospects for above-average economic growth and accompanying earnings gains in 2022 point to another potentially good year for stock investors. While the pandemic is not completely behind us as the COVID-19 Omicron variant spreads rapidly (though with a high proportion of mild cases), and there are several other risks to watch, particularly inflation, stocks have historically done well in mid-cycle economies. We do not expect 2022 to be an exception,” LPL Financial’s Detrick added.

According to a stockmarket.com report, three FAANG stocks will be closely watched next year. In the context of the broader stock market’s recovery, tech stocks are once again in focus. Among the most successful stocks in the sector, the FAANG stocks shine brightest as S&P 500 companies with a tech component make up a large portion of the index. In case you’re not familiar, this group of stocks includes Meta Platforms (formerly known as Facebook), Amazon, Apple, Netflix, and Google’s parent company Alphabet will be in focus in 2022.

“More volatile equity markets in 2022: At face value our global macro forecasts suggest a continued benign backdrop for equities in 2022 with strong nominal (and real) GDP growth, moderating inflation through the year and no rate hikes from any of the G3 central banks. However, underneath the surface we think there are a number of reasons to suggest that global equities’ serene progress over the last 18 months will become somewhat more volatile going forward as earnings growth slows, bond yields rise, and corporates continue to juggle the challenges of disrupted supply chains and elevated input costs. We think that these issues weigh most heavily on the US equity market but are more optimistic elsewhere, especially in Europe and Japan, where our risk/reward frameworks still look quite appealing,” noted Michael J. Wilson, equity analyst at Morgan Stanley.

“Underweight US stocks: Slower EPS growth and higher starting valuations versus global peers leave us underweight the S&P, where our target of 4400 implies 5% downside potential. Risk/reward looks more appealing for Europe and Japan: We are overweight Europe and Japan (8% and 12% upside potential, respectively), where we see the best EPS growth for 2022 and where valuations have already reset to more attractive levels. We remain neutral on EM and China for now. Recommendations: Potential for sector and style dispersion feels more limited than usual. We are overweight financials across all regions and positive on energy in Europe and EM. Consumer discretionary is a high-conviction underweight in the US,” Morgan Stanley’s analysts added.

We wish you a happy, healthy New Year!