These companies reporting next week have a history of posting beats and rallying

Upcoming Earnings: Firms With Strong Track Records May Offer Investors Growth Opportunities

Think about earnings season like report card day at school—some companies get gold stars, and their stocks often get a boost. That’s why paying attention to which companies usually impress Wall Street can help investors make smarter choices.

Why This Matters for Investors

Earnings season is when companies share how much money they made or lost over the past few months. For investors, these results can cause stock prices to jump or drop quickly. Picking stocks that usually do well after earnings can help your portfolio grow, even when the market feels shaky.

Stocks That Shine After Earnings

  • Intuitive Surgical: Makes robotic surgery systems. They beat earnings estimates 88% of the time and their stock often rises about 2.4% after results. But, shares are down 17% this year because of worries about profit margins and tariffs.
  • Amphenol: A lesser-known tech company that makes connectors and cables for big names like Nvidia. They beat estimates 91% of the time and usually see a 1.9% jump after earnings. Shares are up 84% this year, mainly thanks to strong demand in artificial intelligence (AI).
  • Deckers Outdoor: The parent company of Ugg boots. They’ve beaten earnings 94% of the time, making them a steady performer.
  • Western Alliance Bancorp: A bank that has exceeded earnings forecasts 87% of the time.
  • Teledyne Technologies: Almost always beats earnings—99% of the time, making them a reliable pick for earnings season.

Bull Case: Reasons to Feel Positive

  • Companies with a strong history of beating earnings can boost your portfolio, even when the market feels uncertain.
  • Positive earnings results can help keep the current bull market alive, especially as investors worry about high interest rates and global trade issues.
  • Stocks like Amphenol are riding big trends like AI, which is expected to keep growing fast. For example, the AI market could reach over $300 billion by 2026.
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Bear Case: Reasons to Be Cautious

  • Even top performers can stumble. Intuitive Surgical’s recent stock drop shows that tariffs and profit worries can still hurt.
  • Markets are jumpy due to things like government shutdowns and changing trade policies.
  • Just because a company usually beats earnings doesn’t mean it always will. Surprises happen, and stocks can fall fast if results disappoint.

What History Tells Us

Historically, stocks that consistently beat earnings often outperform the broader market. According to a study by CFA Institute, stocks that surprise with better-than-expected earnings can see an average price jump of 2–3% right after the announcement. But, over time, these gains can fade if the company can’t keep up the good news.

Investor Takeaway

  • Watch for companies with a strong “beat and rally” record during earnings season. They can offer quick gains—but stay alert for surprises.
  • Diversify your picks. Don’t put all your money into just one or two “gold star” stocks.
  • Keep an eye on bigger trends, like AI growth, that can boost certain sectors for years to come.
  • Remember, even strong companies face risks from outside forces like tariffs or government actions.
  • Review your investments after earnings season to see if your winners are still worth holding.

For the full original report, see CNBC

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