These stocks reporting next week can beat expectations and rally, Bespoke says

Upcoming Earnings Reports Offer Potential Upside for Investors, According to Bespoke Analysis

Imagine checking your report card and seeing you usually get A’s—wouldn’t you feel confident about your next test? That’s how some investors feel about companies that almost always “beat the estimates” when they report earnings.

Why Investors Should Care

Earnings season is like a big reveal for companies. When a company reports better-than-expected results, its stock price often jumps. This can mean quick gains for investors, but there’s also risk—especially if things don’t go as planned.

Stocks With a History of Beating Expectations

  • Five9 (FIVN): This tech company has beaten earnings estimates 98% of the time, according to Bespoke Investment Group. On average, its stock rises just over 3% the day after earnings. But it’s had a rough few years, dropping over 23% in 2026, after falling more than 48% in 2024 and 50% in 2025. Still, analysts believe it could bounce back, with a price target showing a possible 77% jump in the next year.
  • Meta Platforms (META): The parent of Facebook has an 89% beat rate and usually climbs about 2.1% after earnings. Its stock hasn’t done much in 2026, trailing the Nasdaq’s 5% gain. Even after laying off 10% of its workforce (about 8,000 people), most analysts think it could rise another 26%.
  • Wingstop (WING): Beyond tech, this restaurant chain has a 79% beat rate and a 3.7% average post-earnings bounce. Shares are down over 22% this year and were down 16% last year. But analysts expect a rebound, with a 54% potential upside.

The Bull Side: Reasons to Be Optimistic

  • Strong Track Records: These companies often beat expectations, which can boost investor confidence.
  • Big Analyst Price Targets: Wall Street generally sees room for these stocks to rise a lot from here.
  • Post-Earnings Rallies: Historically, these stocks have often jumped after earnings reports.
  • Sector Trends: Tech and restaurant sectors have bounced back before after tough years, like the S&P 500’s average 10% annual return over the last 90 years (NY Times).
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The Bear Side: Reasons for Caution

  • Poor Recent Performance: All three stocks are down big this year, which could mean trouble ahead.
  • Market Fears: Concerns about artificial intelligence, layoffs, or slowing growth can hurt these companies.
  • No Guarantees: Just because a company beat estimates before doesn’t mean it always will—surprises happen.
  • Broader Market Risks: If the whole market drops, even “A+” companies can fall. For example, during the 2008 crisis, most stocks dropped no matter their earnings history (Investopedia).

Investor Takeaway

  • Do Your Homework: Don’t just rely on past earnings beats—look at why a company is succeeding or struggling.
  • Watch Earnings Dates: Stocks can swing fast around earnings—plan your buys or sells ahead of the announcements.
  • Diversify: Don’t put all your money in a few “star” stocks; spread it out to lower risk.
  • Check Analyst Ratings: Use analyst price targets as a guide, but remember they’re just opinions, not guarantees.
  • Think Long-Term: Even if a stock jumps after earnings, focus on the big picture and your long-term goals.

For the full original report, see CNBC

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