These stocks reporting earnings next week have a history of beating estimates.
As the earnings season kicks into high gear, there are a number of early reports to watch that have beaten expectations and rallied accordingly. The earnings season is set to pick up steam next week, with big names including Goldman Sachs, United Airlines and Netflix on the list. Investors will be watching to see how these companies’ reports and guidance compare to Wall Street forecasts, while also keeping an eye out for any commentary on the health of the consumer. Bespoke Investment Group screened stocks reporting next week that have beaten Wall Street’s consensus earnings estimates at least 75% of the time. From there, the firm narrowed in on names that have also risen at least 1% in the typical post-earnings session. Here are the nine names that made the list: Ally Financial, which reports on Wednesday, is one that made the list. The stock has beaten earnings expectations nearly four out of five times, which has driven the typical gain of 1.2%. Evercore ISI analyst John Pancari named it one of his picks heading into the Q2 release, noting that the bank stock’s results could bolster confidence in its improving earnings. “We believe investor confidence in ALLY’s guidance and medium-term fundamental/earnings outlook will improve with Q2 2024 results – thus supporting the stock’s discounted valuation,” Pancari wrote to clients late last month. Ally is up more than 18% so far this year, slightly outperforming the broader market. The average analyst polled by LSEG has a buy rating and expects the stock to rise more than 4% next year. ALLY YTD Mountain Ally, homebuilder DR Horton also made the list, with a 76% outperform rating and a 1.5% post-earnings average return. The company is scheduled to report Thursday. Heading into this earnings season, JPMorgan’s Michael Rehaut named the stock one of his long-term plays. “We expect DHI to outperform its peers this earnings season, as we believe the buy side has been more negatively focused on the company recently than its peers,” Rehaut told clients in a note on Wednesday. DR Horton is down a little more than 8% this year, bucking the broader market’s uptrend. But the average analyst surveyed by LSEG has a buy rating with an implied price target that suggests the stock could rebound by more than 18%. Intuitive Surgical, which also reports on Thursday, passed the screen with an 88% outperformance rating and an average upside of 2.4%. Goldman Sachs analyst David Roman named the stock one of his top medical technology picks for the earnings season in a note to clients on Wednesday. He cited the potential for positive earnings revisions as a reason for that optimism. Intuitive’s earnings call comes amid a strong run for the stock, with shares up more than 31% through 2024. But the average analyst, despite a buy rating, sees a correction of more than 2% next year.
