Stocks Expected to Outperform After Earnings Season

Stocks Expected to Outperform After Earnings Season

Next week, investors are eagerly awaiting the earnings reports of several companies as the busiest week of this earnings season approaches. With almost a third of the S&P 500 companies scheduled to announce their results, market observers are particularly interested in the performance of tech giants Apple and Amazon, as well as chipmakers Qualcomm and Advanced Micro Devices. Additionally, Starbucks and Kraft Heinz are anticipated to provide insights into consumer spending trends. Analysts believe that companies exceeding quarterly earnings and revenue expectations could witness a surge in their stock prices, while those falling short may face a sell-off. In this article, we will focus on a selection of stocks with a consistent track record of outperforming the Street’s expectations.

Customer relations management company HubSpot leads the pack with a flawless record of beating both earnings and revenue estimates. After announcing its results, HubSpot usually experiences a 4.8% surge in its stock price. It is noteworthy that Bank of America recently named HubSpot as one of its top picks due to potential tailwinds from artificial intelligence interest. The stock has already jumped 93% year-to-date and is currently trading above the consensus analyst price target.

Apple, renowned for its iPhone, iMac, and iPad, is scheduled to report its results on Thursday after the closing bell. The Cupertino-based company has historically surpassed earnings and revenue estimates in 89% and 78% of cases, respectively. Following its earnings reports, Apple typically witnesses an average rise of 1.37% in its stock price. Approximately 80% of analysts covering the stock rate it as a buy. However, the consensus analyst price target suggests a potential pullback or an increase in price targets.

Yum China

Yum China, the Chinese restaurant holdings company which includes KFC and Pizza Hut, has a track record of beating earnings estimates 73% of the time. After its earnings release, Yum China’s stock price typically increases by approximately 1.13%. Although the stock has gained more than 9% year-to-date, it lags behind the wider market. However, the average price target predicts a potential rally of over 21%.

Steve Madden

Footwear maker Steve Madden also made the list of top-performing stocks. The company has beaten earnings estimates in 75% of cases and revenue forecasts in 71% of cases. On average, Steve Madden’s stock price rises 1.67% on the day following its earnings announcement. While the stock has shown gains of 6.3% and 5% in 2023 and over the past 12 months, respectively, it has underperformed the broader market. Steve Madden is set to release its results on Wednesday before the opening bell.

Next week’s earnings season represents a critical juncture for many companies, and investors are keenly watching the results of various industry leaders. Tech giants like Apple and Amazon, as well as chipmakers Qualcomm and Advanced Micro Devices, are particularly under scrutiny. Additionally, market observers are eager to gain insights into consumer spending through the earnings announcements of Starbucks and Kraft Heinz. However, it is important to note that exceeding expectations is not a guarantee of future success. As always, investors should exercise caution and carefully analyze each company’s financial performance before making investment decisions.


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