Earnings Season Insights: Stocks to Watch Next Week
As investors navigate through the bustling earnings season, many are eager to identify companies that have a strong track record of surpassing Wall Street estimates. This trend not only showcases a company’s resilience amid market fluctuations but can also serve as an opportunity for investors looking for potential stock pops. At Extreme Investor Network, we believe that knowledge is power, and equipping ourselves with insights can significantly influence investment choices.
A Promising Earnings Season
Currently, we’re halfway through the fourth-quarter earnings season, and the results have largely been positive. According to FactSet, an impressive 78% of the over 290 S&P 500 companies that have reported so far have exceeded analysts’ expectations. Next week is poised to be equally active, with 75 additional companies set to reveal their earnings. Notably, many of these firms hail from the travel, restaurant, and semiconductor sectors—a positive development given the increasing consumer demand in these areas.
Stocks with Strong Earnings Histories
What if we told you there’s a list of companies reporting next week that not only have a history of beating earnings estimates but also tend to see their stock prices rise on earnings days? Utilizing data from Bespoke Investment Group, we’ve compiled a few notable names that investors should keep an eye on. These companies have historically topped estimates at least 75% of the time and have averaged gains of 1.5% or more following their earnings announcements.
1. Zillow (Z)
First up is Zillow, the prominent real estate marketplace, set to report next Tuesday. Over the past year, Zillow’s shares have surged by an astounding 51%. Even more impressive, the company has beaten earnings expectations 85% of the time, experiencing an average stock price increase of 2.2% on earnings days. Earlier this month, KeyBanc upgraded its rating on Zillow to "overweight," citing the company’s innovative integrated app experience and its potential for continued growth in a challenging real estate market. With a target price of $100, analysts believe there’s still room for an additional 20% upside.
2. CyberArk (CYBR)
Next on the list is CyberArk, a cybersecurity firm that boasts an impressive earnings beat rate of 98%. The stock typically enjoys a favorable 2.88% pop on the day of its earnings announcements. CyberArk is scheduled to release its earnings on February 13. Over the past year, its shares have appreciated by 59%. Recently, Wells Fargo positioned CyberArk as one of its top picks for the first quarter, highlighting potential catalysts such as their upcoming Analyst Day that promises to offer deeper insights into growth expectations.
3. Roku (ROKU)
Last but certainly not least, we have Roku, a significant player in the streaming industry. Roku has consistently exceeded earnings expectations with an impressive 86% success rate. Despite experiencing a nearly 13% decline over the past year, the stock typically pops by approximately 1.97% on earnings day. Next Thursday, Roku will unveil its latest financial results. JMP recently initiated coverage with a "market outperform" rating, believing the platform’s strong positioning and numerous revenue-generating opportunities could set the stage for returning growth.
Conclusion: Staying Ahead of the Curve
While earnings reports can often bring volatility to the stock market, understanding which companies have a history of success can help investors make informed decisions. Companies like Zillow, CyberArk, and Roku not only demonstrate resilience but also present potential opportunities for value-driven investors. At Extreme Investor Network, we encourage our readers to remain proactive, conduct thorough research, and always keep an eye on the evolving earnings landscape.
Stay tuned for more insights as we continue to explore the dynamic world of investing, and remember—the right information can set you apart in this competitive environment. Happy investing!