Earnings Momentum: Key Stocks to Watch Next Week
As the fourth-quarter earnings season heats up, investors are keenly watching 90 companies from the S&P 500 and eight from the Dow Jones Industrial Average set to release their quarterly results. With reporting spanning various sectors, this is a pivotal moment to gauge the health of the U.S. consumer and, by extension, the broader economy. At Extreme Investor Network, we’ve compiled insights that can empower your investment decisions as you look for stocks that not only have strong earning potential but are also backed by analysts with favorable ratings.
Identifying Stocks with Earning Momentum
To help you navigate this busy earnings period, we’ve screened for S&P 500 companies that exhibit significant earnings momentum. The criteria we used for selection were:
- Buy Ratings: Stocks must have buy ratings from at least 55% of the analysts monitoring them.
- Potential Upside: Analysts’ average price targets should indicate at least a 10% upside.
- Upward Earnings Revisions: Earnings should have been revised higher by a minimum of 15% over the past three and six months.
This approach helps identify companies that not only have current momentum but also possess the analysts’ confidence needed to trigger further gains post-earnings announcements.
Featured Stocks with Strong Earnings Momentum
Amazon (AMZN)
Amazon continues to be a favorite among analysts, with about 80% rating it as a buy. The e-commerce giant’s shares jumped by 25% in the past three months alone, and analysts project a remarkable 31% potential upside based on average price targets. As highlighted by JPMorgan analyst Doug Anmuth, Amazon Web Services (AWS) has shown remarkable growth and offers promising avenues for profitability. Scheduled to report earnings next Thursday, Amazon could be a significant player to watch.
Visa (V)
Visa is another heavyweight that has seen its shares rise by 29% in the last six months. Currently, 61% of analysts recommend Visa as a buy, with an average target price suggesting a 16% upside. Morgan Stanley’s James Faucette considers Visa one of his top picks in the payments sector, pointing to attractive valuations and the company’s strong position benefitting from travel and value-added services. Visa’s earnings report is slated for next Tuesday, making it a must-monitor during this earnings season.
Synchrony Financial (SYF)
Yet another contender, Synchrony Financial, has shown remarkable growth of 41% in the past six months, and a jaw-dropping 85% over the past year. Analysts have started to take notice, with a consensus buy rating from 61% of them, and an average price target suggesting 24% upside potential. Recognized for its low valuation and a favorable outlook on increased revenue from mitigating losses, Synchrony is set to announce its earnings on the same day as Visa.
Other Notable Mentions
Also on our radar are telecommunications provider T-Mobile and health insurer Cigna, both of which have shown resilience and earnings momentum. Their performance could provide critical insights into consumer spending trends, particularly in areas that relate to communication and healthcare—a vital part of daily life that can indicate broader economic health.
Conclusion: Don’t Miss Out
This busy week of earnings announcements is not just a chance to understand individual companies but also a barometer for the overall economic climate. By focusing on stocks with upward momentum and strong analyst support, you can position your portfolio to react positively to upcoming earnings news.
At Extreme Investor Network, we’re committed to providing you with analysis and resources tailor-made for today’s dynamic investing landscape. Stay tuned for more in-depth reports and insights to enhance your investment strategies, ensuring you’re always one step ahead of the game. Happy investing!