Looking for the next earnings season blowups after the Netflix disaster

Published Wed, Apr 20 20223:10 PM EDTUpdated Wed, Apr 20 20223:33 PM EDT

Netflix's stunning drop may spur investors to review their holdings. After shockingly poor subscriber numbers sent shares of the streaming service falling 37% on Wednesday, CNBC Pro found more companies with similar set-ups to watch as earnings season progresses. Only about 12% of companies in the S & P 500 have reported quarterly results through Wednesday morning, with the majority of those names actually topping expectations, according to FactSet. To be sure, the stocks that surfaced in our screen may not unravel quite like Netflix, but these companies do share attributes — including recently peaking margins and deteriorating stock prices — potentially warning of trouble ahead. All stocks that surfaced on CNBC's screen had margins that shrank in the most recent quarter from the year-ago period, according to data from FactSet. And all had stocks that are down more than 10% from a year ago. Meanwhile, less than half of analysts surveyed have buy ratings on these companies. And all stocks dropped 5% or more at least once during the last three quarters after reporting earnings. Here are 14 stocks investors may want to avoid: Several consumer non-cyclical stocks are set up similar to Netflix, including Clorox , eBay and Newell Brands . Take Clorox. Its margins shrank by nearly 14 percentage points in its fiscal second quarter, which ended Dec. 31, from the year-ago period. The company has been hurt as demand for household cleaning products normalizes from pandemic highs. Only one out of 10 analysts consider shares of Clorox a buying opportunity. The company's stock price is down 24% from 12 months ago, and shares tumbled nearly 15% after releasing its last earnings report. Clorox is expected to report its result on May 2. Technology stocks Citrix Systems , Garmin , Intel and Skyworks Solutions also may have had margins peak. Semiconductor company Intel saw its margins shrink 2.1 percentage points to 53.6% in the fourth quarter from the year-ago period. At the same time, Intel's stock price has cratered nearly 25% in the past year, as chip stocks continue to take a beating. Just 18% of analysts rate Intel a buy. The company's stock price tumbled after reporting earnings in each of the three prior quarters. Its financial report is slated to be release on April 28. Some non-energy stocks have also been losing steam over the past year, such as Air Products and Chemicals and Mohawk Industries . Gross income margins for Air Products were down 5.5 percentage points to 25.7% in the fourth quarter versus the prior year. Shares for Air Products dropped 12% from one year ago. Less than half of analysts, 46.2%, consider Air Products a buy. The company's shares dropped after earnings during the last three quarters. Its next report is due out on May 5. Other companies that surfaced include IPG Photonics , Xylem and Zimmer Biomet Holdings .

Intel Foundry Services will manufacture multiple chips for MediaTek for a range of smart edge devices, the two companies said on Monday.

Fabian Bimmer | Reuters

Netflix's stunning drop may spur investors to review their holdings.

After shockingly poor subscriber numbers sent shares of the streaming service falling 37% on Wednesday, CNBC Pro found more companies with similar set-ups to watch as earnings season progresses.