Here are your stock picks for the week: May 2, 2022

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As we start the first week of May, investors are still reeling from the worst month the stock market has had in over two years. The week ahead also features earnings from other big tech players following shocking earning reports from Netflix and Amazon. Many investors will also have their eyes peeled for a two-day policy-making meeting from the Fed this week. Construction spending, durable goods orders, trade balance, and the much-awaited US jobs report are also on the table.

Analysts will be predicting a payroll gain of 390k for April and an unchanged employment rate of 3.60%. A slight decline in hourly earnings growth of 5.4% is also predicted. Without further ado, though, here are your weekly stock picks!

Merck  

Merck (ticker: MCK) stock recently gained following its last earnings report. The multinational pharmaceutical company headquartered in New Jersey earned $2.14 per share, minus some items, on $15.9 billion in sales. The company’s earnings skyrocketed 84% and beat analysts’ predication of $1.83. 

Merck saw sales of $15.9 billion, up 50% year over year and analysts expect it to hit $14.56 billion, according to FactSet. The company’s biggest revenue earner is cancer treatment Keytruda, which brought in $4.8 billion. Merck’s Covid-19 treatment Lagevrio also made the company more than one-fifth of its sales during the quarter, exceeding Pfizer’s Paxlovid. 

General Dynamics

General Dynamics (ticker: GD) stocks soared at the beginning of the Russia Ukraine war as Europe and other countries moved to increase their defense spending.

GD and other companies should continue to benefit from this spending over the long term. The company’s revenue of $9.4 billion also beat estimates of $9 billion. The company’s aerospace business had a good quarter, with revenue of $1.9 billion and operating earnings of $243 million with a 12.8% operating margin.

“Revenue was almost $180 million higher than anticipated by the sell side,” CEO Phebe Novakovic said. “The difference is almost entirely growth at Gulfstream services and jet aviation.”

Cheniere Energy

Liquefied natural gas company headquartered in Houston, Cheniere Energy (ticker: LNG) is set to report its earnings this week on May 4. The company’s full-year adjusted EBITDA of $4.9 billion was at top of its expected range and the company raised its guidance from $7 billion to $7.5 billion for 2022.

LNG exports have increased recently as the company completed its Sabine Pass expansion amid increased global demand for LNG. Europe has been outbidding Asian markets for the limited amounts of LNG available from the US, Australia, and Qatar.

Marriott Stock

Marriott (ticker: MAR) is also due to report earnings this week. The company, whose brands include Marriott Hotels & Resorts, JW Marriott, Courtyard, Residence Inn and Ritz-Carlton, has been performing exceedingly well, reporting huge earnings and sales growth in February. 

The company earned $1.30 per share on revenue of $4.4 billion, year-over-year increases of 983% and 105%, respectively. The results were part of a huge comeback for the company, which saw declining EPS or losses in 2020 and Q1 of 2021.

Although the omicron strain caused a temporary setback in global demand recovery in January, Chief Executive Anthony Capuano said sales have now rebounded to prior levels. “We are optimistic that the global recovery will progress meaningfully throughout 2022,” Capuano said.

Disclaimer: Market Buzz contributor as no position in any of the stocks mentioned.

This does not constitute investment advice and is for entertainment purposes only.

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