As June comes to an end later this coming week, the first half of 2021 will wrap. Equities continue to show momentum on hopes the economic reopening will benefit certain sectors of the economy.
The rotation into value stocks was a key theme in the first half, amid expectations for higher inflation and faster economic growth as pandemic restrictions eased.
The top performing sector of the S&P 500 Index, energy, benefited from rising oil prices this year with a 46% gain. Financials are the second-best performing sector, with a 25% surge.
As investors look for bargains in the second half of the year, here are three mega cap stocks we're following closely in the upcoming week as they're scheduled to announce their latest earnings:
1. Micron Technology
Semiconductor-maker Micron Technology (NASDAQ:MU) is set to report earnings on Wednesday, June 30, after the market close. The storage chip manufacturer is estimated to have made $1.71 in profit per share on $7.2 billion in revenue for its FY2021, third quarter.
The Boise, Idaho-based company, which is the biggest U.S. maker of computer memory chips, raised its forecast for revenue and earnings for the last quarter as sales got a boost from higher demand for memory chips used in phones and computers.
Chief Executive Officer, Sanjay Mehrotra, told Bloomberg in March that memory chip demand will remain strong and supply tight into next year. Cars, servers, and other devices come with more memory than they used to, while companies and consumers are spending on everything from smartphones to networking, he said.
Micron shares closed on Friday at $82.03 on Friday, after rising 9% this year.
2. Constellation Brands
The U.S.-based producer of Corona beer, Constellation Brands (NYSE:STZ), will report its Q1 2022 earnings before the market opens on Wednesday. Analysts are projecting earnings per share of $2.35 on sales of $2 billion.
Sales are growing as the Victor, New York-based wine, beer, and spirits maker, succeeds in managing the difficult operating environment it encountered during the pandemic by offsetting the decline in on-premise, restaurant and bar sales with off-premise sales in its beer business.
Executives told investors in April that they're expecting between 2-4% growth in fiscal 2022, helped by an aggressive marketing push and the company’s ability to increase prices at a faster rate than inflation. STZ shares closed on Friday at $228.60, after gaining about 4% this year.
3. Walgreens Boots Alliance
Walgreens Boots Alliance (NASDAQ:WBA), the second-largest pharmacy operator in the U.S., will report fiscal year 2021, third quarter earnings on Thursday, July 1, before the market opens. Analysts expect an EPS of $1.15 a share in the quarter on revenues of $33.49 billion.
The Deerfield, Illinois-based company is benefiting from the COVID-19 pandemic as the chain administers millions of vaccine shots to Americans who tend to spend on other items as well when they visit the pharmacies.
Walgreens, in raising its annual forecast in March, said money made from administering COVID-19 vaccines should begin to offset pandemic-related losses.
Before the pandemic, Walgreens was struggling to boost sales and had implemented a cost-cutting drive as its market share came under pressure with growing competition from Amazon (NASDAQ:AMZN) and other segment competitors.
Part of these efforts included bolstering its digital strategy and making deliveries free through its website while also expanding a partnership with delivery service Postmates (NYSE:UBER). Walgreens shares have gained 30% this year. The stock closed on Friday at $52.16.