Banks, Airlines Set the 2022 Tone (DAL & WFC Analysis)


There are many things to note in 2022.

We are still working on COVID-19, economic recovery, inflation, and the current rise in interest rates.

Now, two companies are reporting revenue this week, which could be an indicator for the future. You want to see how investors are trading airlines for recovery and what banks are doing to deal with interest rates.

Logic says the rebound economy is great for airlines. Great for banks, but rising interest rates bring more benefits to banks. That’s because they can create a larger spread from their borrowing rate to what they charge you.

This year is becoming a good year for airlines and bank stocks. But revenue is key. You want to see this logic work, and our first peak may be this week.

This is what I see …

Revenue Edge Stock Number 1: Delta Air Lines Inc. (NYSE: DAL).

Earnings announcement date: Thursday, before opening.

Expectations: Revenue of $ 0.12 per share. Revenue is $ 9.2 billion.

Analyst Average Rating: Excellent.

I flew the week before Christmas, and will fly again this Friday for my son’s hockey tournament. I have to say that I wasn’t as busy as I expected.Wasn’t deathHowever, the week before Christmas is usually a busy time to travel. There were few routes through the airport.

Call it boots on the ground, or just say you’re out of luck, but air travel hasn’t returned to normal yet.

But that’s okay. There is room for growth.

It may be set in a volatile trading quarter as analysts try to understand when that growth will begin.

Delta’s share has been declining in recent months, creating a downtrend channel.

DAL can be pulled back

Stocks won’t stay longer. However, if you look at how stocks are leading the market (shown in the green tint of the current price action in the chart above), you can pull back.

Note: To find out how to analyze these stocks using Profit Radar Read this..

And when it comes to profits, stocks could fall to the low $ 30 range.

I think DAL will rise strongly this year, but the first few months are wildcards.

Revenue Edge Stock 2: Wells Fargo and Company (NYSE: WFC).

Earnings announcement date: Friday, before opening.

Expectations: Revenue of $ 0.99 per share. Revenue is $ 18.6 billion.

Analyst Average Rating: Excellent.

Bank stocks make it a little easier. Rising interest rates have widened their margins over time, and a recovery in the economy means that consumer credit remains strong.

Maybe that’s why Wells Fargo stocks are on a good uptrend — in the opposite direction of Delta. Again, these pricing channels won’t last forever, but WFC looks more promising for this week.

WFC trend is high

WFC Chart Revenue

It is at the top of this trend channel (indicated by the red and green lines) and is testing the red resistance level. And I’m doing that while the bar is shaded blue. In other words, it has been improved. It hasn’t even hit the main quadrant (green bar) yet. Last time, I circled the time when WFC reached this resistance line, but you can see that the share was already in the main quadrant.

This shows that WFC has room for higher. Positive revenue reporting can easily get you started and get out of this stable price channel.

The move doesn’t have to be massive, but I’m looking for Wells Fargo to raise his head higher this week and in the coming months.

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