Anticipating Earnings Surprises: Stocks to Watch Next Week

As the earnings season heats up, investors are keenly scanning the horizon for companies poised to exceed analysts’ expectations. With only 19 companies in the S&P 500 reporting fourth-quarter results thus far—representing a mere 4% of the index—it’s already evident that the earnings landscape is teeming with potential. According to data from FactSet, the average earnings growth among these early reporters stands at an impressive 24%. This creates a fertile ground for discovering stocks that may ride the wave of positive surprises.

At Extreme Investor Network, our mission is to equip investors with insider knowledge and unique insights that can make the difference between a good investment and a truly great one. Below, we spotlight three companies scheduled to report their earnings next week that are historically more likely to outperform Wall Street’s estimates.

1. BlackRock (BLK) – A Giant That Continues to Shine

BlackRock, the world’s largest asset manager, has been on a growth trajectory, with shares climbing over 24% in the past year. What sets BlackRock apart is its impressive track record of beating earnings expectations—historically achieving this feat 80% of the time. Following their earnings announcements, the stock has typically realized a one-day price increase of 1%.

Scheduled to unveil its fourth-quarter earnings on January 15, analysts are forecasting earnings per share (EPS) of $11.33 on revenue of $5.6 billion. Given the ongoing strength of asset management and investment advisories, this presenting could well serve as a catalyst for further gains.

2. Citizens Financial Group (CFG) – A Steady Performer with Room to Grow

Providence, Rhode Island-based Citizens Financial has also proven to be a reliable player. With a remarkable 34% increase in shares over the past year, this regional bank frequently surpasses analysts’ expectations—doing so approximately 78% of the time. Its investors have seen average gains of 1.4% the day after earnings reports, accentuating its dependable performance.

Citizens is set to report its fourth-quarter results on January 17, with analysts estimating earnings at 82 cents per share on revenue of $1.96 billion. The recent upgrade to ‘strong buy’ by Raymond James underscores the bank’s escalating profitability, particularly in its private banking segment, suggesting even higher earnings could be on the horizon.

Why These Stocks Matter

So why should investors care about these earnings reports? Earnings not only serve as a reflection of a company’s performance but also shape market sentiments and drive stock prices in the short term. Companies that consistently exceed expectations may indicate stronger operational health, further investment potential, and even dividend reliability, which can be critical for long-term investors.

Additionally, at Extreme Investor Network, we believe in leveraging historical data for strategic decisions. By identifying companies with a proven history of performance, investors can position themselves advantageously in today’s volatile market.

Stay Ahead of the Game

As we dive into another round of earnings reports, keep your eyes peeled for these potential outperformers. The right preparation can offer you the upper hand in navigating the unpredictable landscape of the stock market. For more unique insights and strategies tailored for the discerning investor, continue browsing the Extreme Investor Network.

Let us help you make informed decisions—because your investment success is our mission. Stay tuned for further analysis and stock recommendations as the earnings season unfolds!