Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on investing opportunities. Today, we are diving into the world of earnings reports and how they can impact your investment decisions.
According to Bespoke Investment Group, several regional financial companies are set to report their earnings this week, and they could see a rally after their reports. With investors’ expectations running high, the estimated year-over-year earnings growth rate for the S&P 500 is set at 4.2% for the third quarter, marking the fifth consecutive quarter of growth if achieved.
Nearly half of the S&P 500 companies reporting earnings this week are in the financial sector, with an expected year-over-year earnings decline of 0.4%. Bespoke Investment Group has identified companies that have consistently beaten analyst estimates at least 70% of the time and have historically seen an average 1% jump in their stock price post-earnings release.
Citizens Financial is one of the names on this list, with a track record of outperforming earnings expectations 80% of the time and an average daily jump of 1.5% following their quarterly report. Analysts are bullish on the stock, with an average overweight rating and a price target implying a potential upside of 10.8%.
Another company to watch is Western Alliance, a regional banking stock with an impressive earnings beat rate of 88% and an average post-earnings move of around 2.1%. JPMorgan analyst Steven Alexopoulos has named Western Alliance as a top financial stock pick, citing its strong loan growth potential and attractive valuation. Analysts have a buy rating on the stock, with a price target suggesting a 19.4% gain.
Lastly, medical device company Intuitive Surgical has historically beaten earnings expectations 80% of the time, with an average post-earnings move of 2.5%. While the stock has seen a significant 45% jump this year, analysts believe there is limited room for further gains, with an average price target indicating a 3.4% potential upside over the next year.
As earnings season heats up, keep an eye on these companies and their performance post-reporting. Stay informed and make educated investment decisions with Extreme Investor Network.