These stocks reporting next week have a history of beating earnings expectations
More companies are due to report earnings next week, and some of them may be set up for gains in the coming days. Earnings season has already been outperforming the gains seen in last year’s period. As of Thursday, 86% of S & P 500 companies have reported, and their earnings and revenue are up 8.2% and 5.3%, respectively, versus the year-ago quarter. Additionally, earnings have beaten expectations by 7.5% this period, while revenue has beaten expectations by 1.7%. With key names on deck, CNBC Pro used Bespoke Investment Group data to screen for those reporting next week that have historically surprised investors and enjoyed strong performances after earnings. Specifically, the companies presented below have surpassed Wall Street’s expectations 75% of the time and have advanced at least 1% on earnings days. Nvidia’s post-earnings gains round out the top five highest on the list at about 2.1%, according to the data. The AI chip darling also has a record of fairly reliable earnings performance, as it has beaten analysts’ expectations 86% of the time. Following President-elect Donald Trump’s win over Vice President Kamala Harris, Wolfe Research reiterated its outperform rating Thursday, saying it’s not particularly worried about any new restrictions on semiconductor companies under the Republican’s second term. “Direct restrictions on AI semis have already been in place for the last several years,” the firm wrote. “Restrictions have ensured that NVDA and AMD AI accelerators shipped into China have roughly the same performance as what domestically available options can already provide.” Shares hit a 52-week high during Thursday’s session, putting the stock’s year-to-date gains at more than 198%. Similarly, Loop Capital has taken a bullish stance on JD.com ahead of its quarterly results, upgrading the Chinese e-commerce company to buy from hold. The firm believes the company is well positioned for more growth ahead. The move comes as JD.com has historically beaten earnings estimates 83% of the time and has recorded postearnings gains of 1.1%. In 2024, the stock has risen nearly 42%. “We are upgrading our rating on JD to Buy from Hold,” the firm wrote in an October note. “We think the company will be among the top beneficiaries from consumption stimulus and think all stocks will continue to see valuation recovery from historic lows.” Meanwhile, Williams-Sonoma has even more historical earnings reliability than JD.com and Nvidia, beating the Street’s expectations 88% of the time. The retailer has also seen post-earnings gains of 1.4%. That said, Wedbush Securities has recently taken a more neutral stance on the name heading into its third-quarter results on Nov. 14. Its rating joins 15 other analysts with hold ratings. Of the remaining nine analysts covering it on the Street, six have a strong buy or buy rating. “We move to the sidelines on WSM ahead of 3Q24 earnings in mid-November,” Wedbush said in a note late last month. “While WSM seemingly de-risked its outlook when it reduced FY24 guidance in conjunction with 2Q24 results, we now believe that trends have deteriorated in recent months despite easier comparisons.” While the stock has risen more than 31% this year, it’s seen a tumultuous past few weeks. Shares have fallen more than 11% over the past month.
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