Several companies are set to release their earnings reports next week, with some potentially standing out among the rest. Earnings season is in full swing, with 22% of S&P 500 members expected to announce their quarterly results in the coming days. According to FactSet, the majority of companies that have already reported their third-quarter earnings have exceeded both earnings and revenue expectations. In light of this positive trend, CNBC Pro has analyzed data from Bespoke Investment Group to identify companies that have a history of surpassing investors’ expectations and experiencing strong post-earnings performances. The following companies have met the criteria of surpassing earnings per share expectations 70% of the time and seeing a 2% or more increase in their stock price on earnings day:
ServiceNow stands out as one of the top performers on the list, with an average post-earnings gain of around 3.3%. The enterprise software giant has a strong track record of beating analysts’ earnings per share estimates, achieving this feat 90% of the time. Wells Fargo analyst Michael Turrin has expressed optimism about the stock, reiterating an overweight rating on ServiceNow and raising the price target to $1,025 per share from $935. This new target suggests a potential upside of over 11.5% for the stock, which has already gained 30.3% this year. Turrin highlighted ServiceNow’s Xanadu product release as a significant step forward in the company’s artificial intelligence vision. Additionally, ServiceNow recently announced a $1.5 billion investment in the U.K. over the next five years to expand its business in response to the growing demand for data center infrastructure and AI.
Monolithic Power, a manufacturer of power circuits, has an impressive earnings beat rate of 88%. The company’s shares have surged more than 48.5% this year, outperforming the broader market. On earnings day, Monolithic Power typically experiences a 2.6% price movement, according to Bespoke. Analyst Rick Schafer from Oppenheimer identified Monolithic as one of his top semiconductor picks, anticipating positive results and outlook from leading AI-exposed companies following a correction year in 2023.
Impinj, a provider of radio-frequency identification devices, also made the list with an 88% earnings beat rate and an average post-report stock price increase of 3.2%. The company has seen remarkable growth this year, with its stock price rising approximately 160.3% year to date. Despite analysts’ consensus price target suggesting a potential 13.6% downside, they maintain a buy rating on the stock. PI YTD mountain Impinj stock.