This Week's Earnings Watch: 5 Key Stocks to Track During Reporting Season

The earnings cycle is intensifying as major S&P 500 companies prepare to reveal quarterly results. While financial institutions have already dominated the headlines, investors should keep their eyes on a broader spectrum of sectors this week—spanning transportation, healthcare, media, and airlines. Among the standout names is Netflix, which continues to command significant market attention despite the broader tech diversification trends.

The Market Landscape

With earnings season in full swing, stocks to watch this week span multiple industries. Netflix remains a focal point, having demonstrated strong performance momentum throughout 2024 and hitting fresh record highs. The question remains: can these major-cap names sustain their upward trajectory amid evolving market conditions?

Healthcare Sector: Operational Excellence

Abbott Laboratories (ABT) leads the pharmaceutical charge this week with an exceptional track record of earnings reliability. Over the past five years, Abbott has only stumbled once—back in 2021 during pandemic-related disruptions. That’s a remarkable consistency rate. The stock has maintained a relatively stable valuation approach, languishing in a consolidation pattern throughout the recent years with minimal year-over-year movement at -0.3%. Currently trading at a forward P/E of 22x, the question is whether this healthcare giant can finally break out of its sideways trading pattern and reignite investor enthusiasm.

Industrial & Transportation Sector: Recovery Plays

Union Pacific Corporation (UNP) represents the transportation space, though recent performance suggests caution. The railroad operator failed to meet expectations last quarter, breaking a four-quarter winning streak. The broader transportation sector has been under pressure, with the stock down 0.7% annually as industry fundamentals faced headwinds. Trading at 19.5x forward earnings, Union Pacific could appeal to contrarian investors betting on sector recovery.

Aviation & Travel: Resilience Indicators

American Airlines Group Inc. (AAL) has demonstrated solid execution, posting two consecutive positive earnings surprises with an overall miss rate of just twice since 2021. The airline has benefited from sustained international travel demand, with shares appreciating 41% over the past year. What’s particularly noteworthy is the valuation: American Airlines trades at just 7.3x forward earnings—substantially cheaper than its airline peers. The real question: does this sector maintain its tailwinds into 2025?

Healthcare Technology: Premium Performers

Netflix, Inc. (NFLX) and Intuitive Surgical, Inc. (ISRG) represent opposite ends of the valuation spectrum among stocks to watch this week.

Netflix has compiled an impressive three-quarter winning streak, with only two misses over the past three years. The streaming giant’s shares have surged 79% annually yet still command a reasonable 36.7x forward P/E—suggesting market conviction in future growth.

Intuitive Surgical stands as the premium-priced option, having delivered seven consecutive quarters of positive earnings surprises with just two misses in five years. The company recently pre-announced strong Q4 results with DaVinci system revenue climbing 36% quarter-over-quarter, driven by pricing strength and operational efficiency. The stock has skyrocketed 65.1% over the past year and now trades at new all-time highs with a steep 75.4x forward valuation. Early investors are questioning whether current price levels leave room for further appreciation.

Investment Takeaway

This week’s earnings slate offers diverse opportunities across valuations and sectors. Netflix and Intuitive Surgical represent growth narratives at different price points, while Abbott and American Airlines appeal to value-conscious investors. Union Pacific presents a contrarian transportation play. Together, these stocks to watch this week encapsulate the current market’s varied dynamics—balancing growth momentum with value opportunities amid economic uncertainty.