Wyatt Research Week in Review: April 12-18

Earnings season is now in full swing.
The financial sector was in focus this week, with most of the major banks reporting first-quarter earnings.
JPMorgan Chase (NYSE: JPM) was the big winner, posting earnings of $1.45 a share in the first quarter, compared to the Thompson Reuters consensus analyst estimate of $1.40. It also reported that it plans to increase its quarterly dividend by 10% to 44 cents a share.
But the biggest market mover during the second week of first-quarter earnings season was Netflix (NASDAQ: NFLX). It gained a lusty $86.59, or 18.2%, during Thursday’s trading session after it released earnings following Wednesday’s closing bell.
The streaming media company’s biggest daily gain in nearly two years came despite missing earnings estimates. It earned 38 cents a share in the first quarter, versus the consensus estimate of 69 cents per share. However, Netflix reported that if adjusted for foreign exchange losses, earnings would have been 77 cents a share.
Investors were apparently pleased with Netflix’s robust subscriber figures. It added 4.9 million new users worldwide during the first quarter – a record for the company. That easily topped analysts’ predictions of 4.2 million subscriber additions.
Next week will see earnings releases from scores of heavy hitters, including Verizon (NYSE: VZ), AT&T (NYSE: T), Facebook (NASDAQ: FB), McDonald’s (NYSE: MD), Coca-Cola (NYSE: KO), Google (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT).
Earnings reports may have dominated the headlines this week, but there were plenty of other investment topics on the dockets of the Wyatt Investment Research team. Here are some of my favorite articles:
This Energy Stock Just Upped the Oil and Gas Ante – This energy stock was struggling even when oil prices were $100 a barrel. That could soon change, due to an aggressive buyout play.
Revealed: The Best Dow Dividend Stock of 2015 – With year-to-date gains of 18%, this stock is beating the Dow by more than 10-to-1. Over the past two years, its dividend has increased 88%. And over the past 10 years, the dividend has grown 192%. Get the name here.
Intel’s Earnings Report Doesn’t Tell the Whole Story – While hitting quarterly targets is always a positive, there are longer-term questions that Intel’s (NASDAQ: INTC) earnings report did not answer.
This Corporate Trend Is the Secret to Big Pharma Profits – There has been no sector hotter for deal-making than the pharmaceutical sector. Last year saw in excess of $250 billion worth of deals struck, a record for the sector. But behind all the headline grabbing deals is a trend that may have escaped the notice of investors seeking Big Pharma profits.
Is a Biotech Bubble Looming? – Seventeen of the top 20 performing stocks with a market capitalization over $300 million are biotech or pharmaceutical stocks. Meanwhile, the top three stocks on that list aren’t turning a profit. Are we looking at another stock market bubble ready to burst, like we saw with the dot-com collapse?
The Best Big Oil Dividend Stock – There are many Big Oil dividend stocks sporting high yields, due to the sector-wide decline over the past year. But this company is leading the pack, thanks to its healthy cash flow and diversified business model.
How to Make 5% to 10% When the Market Is Flat – The S&P 500 has been range-bound for the last two months. But there’s a relatively conservative income strategy which thrives in range-bound markets.
Does a Twitter Buyout Make Sense for Google?  – The rumor mill is once again speculating that Google might purchase Twitter (NYSE: TWTR). Could a Twitter buyout happen, and would it even make sense?
Philip Morris International Lights Up Earnings Season – Expectations for Philip Morris International (NYSE: PM) were very low heading into earnings season. But shares jumped 8% in early market trading immediately after the company issued its first-quarter earnings report Thursday. Here’s why.
How to Make 121% on Netflix Stock … In Just 1 Day – Netflix shares surged 18% on Thursday after it released earnings and subscriber metrics for the first quarter. But a select group of shareholders made 121% in Netflix stock profits yesterday. Find out how here.
Have a great weekend!