With earnings season in full swing, there are a few companies worth keeping an eye on that have a history of not only beating expectations but also soaring stock prices on earnings announcements. Next week marks the second week of earnings season, with major companies like Alphabet, Amazon, and Tesla scheduled to report earnings. After major banks Goldman Sachs, Morgan Stanley, and Bank of America beat expectations this week, investors will be watching to see if these up-and-comers and others will also beat Wall Street expectations. Using data from Bespoke Investment Group, CNBC Pro screened stocks releasing earnings next week that beat Wall Street consensus earnings expectations at least 75% of the time and rose at least 1.5% in the trading session following their earnings announcement. The list is below. Chipotle is one of the stocks that made it onto the list. The stock beat consensus expectations nearly 8 out of 10 times and rose an average of 1.8% on earnings day. Ahead of the report release after the close on Wednesday, UBS is taking a bullish stance on Chipotle.The company sees Chipotle “well positioned” for both foot traffic and sales growth for the remainder of the year. “Given customer brand affinity and a solid price-to-value proposition, we see Chipotle as one of the concepts best positioned to sustain sales momentum amid a challenging macroeconomic environment,” analyst Dennis Geiger wrote in a Thursday note. The firm rates Chipotle shares a “buy” and has a $70 price target for the next 12 months, which would represent an upside of about 31% from Thursday’s closing price. The company has received backlash from customers on social media over portion sizes. The stock is down about 8% over the past three months, but is up about 16% in 2024, reaching a 52-week high of $68.55 on June 18. CMG YTD Mountain Chipotle, Year to Date Like Chipotle, ServiceNow reported earnings after the bell on Wednesday and qualified for the screening with a 90% beat-expectation rate. The company’s stock typically rises 3.1% on earnings day, one of the highest increases on the list. Despite not seeing the company’s second-quarter earnings, due to be released next week, as a major positive catalyst for the stock, BofA still considers it a top pick. The firm recommends buying the stock and has a price target of $900. This represents an upside of about 22% from Thursday’s closing price. “ServiceNow is in the early stages of consolidating a large market opportunity ($64.7 billion addressable market for IT and custom applications) with its leading cloud platform for workflow automation,” analyst Brad Sills said in a Thursday note. The analyst added that while the stock is not cheap, its valuation is “not unjustified.” ServiceNow trades at about 55 times expected earnings. Deckers Outdoor is also among the stocks that made the list. The stock has a 94% beat-for-expectations percentage, the fourth-highest on the list, and has risen about 1.7% on average. The stock has soared nearly 33% this year, but has plummeted more than 19% since hitting an all-time high of $1,106.89 in early June. DECK mountain 2024-06-03 Deckers Outdoor, as of June 3, 2024 Wedbush Securities sees the dip as a buying opportunity, with analyst Tom Nikic pointing to high brand enthusiasm for the company’s flagship brands, Hoka and Ugg. The firm rates the stock an outperform and has a 12-month price target of $1,030. This would represent a 16% upside from Thursday’s closing price. Wedbush notes that while the company has “consistently beaten and raised expectations” in recent years, first-quarter numbers have historically been modest. As a result, the firm expects Deckers’ fiscal 2025 first-quarter results, due next week, will likely feature “fairly modest increases.”
Stocks scheduled to report earnings that historically beat expectations include:
Services
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