As the second-quarter earnings season kicks into high gear next week, savvy investors should be zeroing in on a select group of stocks with a proven track record of beating Wall Street’s expectations—and rewarding shareholders with notable post-earnings rallies. Nearly 100 companies in the S&P 500, representing about 20% of the index, will unveil their latest financials, including heavyweights like Alphabet, Tesla, and General Motors. But beyond the headline names, telecom and defense sectors are also poised for critical earnings reports that could shift market dynamics.
Drawing from exclusive data provided by Bespoke Investor Group and analyzed through the lens of CNBC Pro, we spotlight companies that have beaten earnings per share (EPS) estimates at least 75% of the time and typically see their stocks climb by 1.5% or more on the day they report. This isn’t just about past performance—it’s about identifying reliable earnings momentum that can help investors position their portfolios ahead of market-moving announcements.
Chipotle Mexican Grill: More Than Just a Burrito Chain
Chipotle Mexican Grill (CMG) stands out as a compelling play next week. Historically, Chipotle has surpassed earnings estimates 78% of the time, with an average one-day post-earnings gain of 1.6%. Despite a roughly 11% decline year-to-date, Deutsche Bank recently reaffirmed its buy rating on the $73 billion fast-casual giant, citing accelerating underlying trends heading into the second half of 2025.
Analyst Lauren Silberman highlights that the second quarter likely marks a trough in fundamentals, setting the stage for upside surprises and improved momentum. Deutsche Bank’s $70 price target implies a potential 31% upside over the next 12 months—a significant opportunity for investors willing to look past recent volatility.
Investor Takeaway: This is a classic example of how short-term market jitters can mask longer-term growth potential. Advisors should consider increasing exposure to companies like Chipotle that combine strong earnings consistency with favorable valuations. For those managing client portfolios, layering in such stocks ahead of earnings can be a strategic move to capture upside while maintaining risk discipline.
Intuitive Surgical: Robotics and Beyond
Another standout is Intuitive Surgical (ISRG), the medical device pioneer known for its Da Vinci robotic surgery systems. The company has beaten EPS estimates an impressive 88% of the time, with an average stock gain of 2.5% on earnings days. While shares have remained flat so far in 2025, they’ve surged nearly 7% in the last three months amid growing optimism around the Da Vinci 5 (DV5) system.
What’s particularly exciting—and often overlooked—is the potential expansion of Intuitive’s total addressable market (TAM) through new technologies like the endoluminal robot Ion and its venture capital portfolio. Piper Sandler’s Adam Maeder points out that these innovations could unlock new surgical procedures and markets, driving long-term growth beyond the core DV5 platform.
Investor Takeaway: Intuitive Surgical exemplifies how innovation-driven companies can sustain earnings surprises and stock appreciation. Investors should monitor not only quarterly results but also product pipeline developments and TAM expansion narratives. Allocating capital to firms with robust R&D and venture initiatives could yield outsized returns as new technologies gain adoption.
What’s Next for Earnings Season and Investors?
This earnings season underscores a broader trend: companies that consistently beat estimates and deliver innovation-driven growth tend to outperform in volatile markets. According to a recent study by FactSet, nearly 70% of S&P 500 companies that beat earnings forecasts saw positive stock price reactions within a week, reinforcing the value of earnings momentum as a tactical indicator.
For investors and advisors, the actionable insight is clear—don’t just chase headline names or broad market trends. Instead, focus on stocks with a demonstrated ability to exceed expectations and catalyze rallies. This approach requires diligent research and a readiness to act swiftly around earnings dates.
Action Steps:
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Build an Earnings Momentum Watchlist: Identify companies with a history of EPS beats and strong post-report stock performance. Use this list to guide tactical trades or portfolio adjustments.
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Leverage Analyst Insights: Pay attention to sell-side research that highlights improving fundamentals and growth catalysts, such as Deutsche Bank’s positive outlook on Chipotle or Piper Sandler’s bullish view on Intuitive Surgical’s innovation pipeline.
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Diversify Across Sectors: While tech and consumer discretionary often dominate earnings headlines, don’t overlook telecom, defense, and healthcare sectors, which are also reporting next week and may offer hidden gems.
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Prepare for Volatility: Earnings season can trigger sharp price swings. Use options strategies or set stop-loss orders to manage risk while positioning for potential upside.
In conclusion, next week’s earnings reports are more than just numbers—they are windows into companies’ future trajectories. By focusing on firms with proven earnings resilience and innovation-driven growth, investors can not only navigate the volatility but also capitalize on compelling opportunities. At Extreme Investor Network, we believe this earnings season could be a defining moment for portfolios that combine discipline with strategic insight.
Sources:
- Bespoke Investor Group Data via CNBC Pro
- Deutsche Bank Analyst Reports
- Piper Sandler Research Notes
- FactSet Earnings Reaction Study (2025)
Source: These stocks reporting earnings next have a history of beating expectations