Analysts have cut earnings estimates for these stocks in reports next week
Investors should keep an eye out for companies that could disappoint on earnings and see their share prices fall. Wall Street has been lowering third-quarter growth estimates for months now. According to a recent FactSet note, companies in the S&P 500 are forecast to have earnings grow 4.2% year-over-year, down from the expected 7.8% on March 30. 6. However, that is not unusual as third-quarter growth estimates have trended downward in previous months. According to FactSet, nearly 10% of S&P 500 companies have reported results, with more than 79% of companies beating earnings estimates. However, some names can still disappoint. To find out what’s possible, CNBC Pro sifted through FactSet for S&P 500 stocks that will report next week. These names have seen their earnings estimates drop by at least 10% over the past three and six months. Investor sentiment towards Valero Energy dropped significantly ahead of its quarterly results released on October 24 . Analyst estimates for earnings per share have been cut 80.3% over the past three months and 85% over the past six months. However, the stock remains favored by 60% of Wall Street analysts. One of them is Morgan Stanley analyst Joe Laetsch, who has a high rating and a $165 price target for Valero. That suggests 22.5% upside potential for the stock, which is up about 4% this year. “We see VLO as well positioned in today’s tight refining environment with outsized downstream reach relative to peers,” Laetsch said in a note Tuesday. “Its asset base is well managed and we think VLO will continue to perform, accelerating significantly [free cash flow] as the refining cycle progresses.” Enphase Energy also exercised refinement, as analysts surveyed by FactSet cut their earnings per share estimates on the stock by nearly 39% and 35%, respectively. .5% over the past three and six months. Just under half of analysts rated the stock a buy. RBC Capital Markets analyst Christopher Dendrinos recently lowered his outlook on the stock , downgraded Enphase to outperform on Tuesday. He also lowered his price target to $100 from $25, suggesting a possible 8.6% upside for the stock. Dendrinos’ new outlook on the name reflects his concern that Enphase will see slower growth next year amid continued adoption of demand in the residential solar market third-party ownership, or TPO, in the United States, he said, could also impact Enphase’s demand growth because the company has less market share in TPO systems than its rivals. compete. With the TPO model, the installer maintains ownership of the energy system while the homeowner makes monthly payments for the panels or electricity. , according to Enphase. The company’s shares will report on October 22, down 30% year to date. Tesla is expected to report earnings on October 23 after the market closes. The company must overcome high hurdles before its shares can soar, as the struggling electric vehicle maker disappointed in third-quarter deliveries and failed to impress investors since launching the much-hyped robotaxi earlier this month. Analysts have cut Tesla’s earnings per share estimates by 24.1% over the past three months and 30.8% over the past six months. In total, 34.5% of analysts rate the automaker a buy. Wells Fargo is taking a bearish stance on Tesla moving forward with its earnings report, as it reiterated its low rating on Tuesday and said it expects the company to miss third-quarter estimates.
