As the earnings season continues, a positive trend is emerging in the S & P 500 index. Despite a few disappointments from the megacap tech companies, the overall outlook remains positive. So far, 78% of the S & P 500 companies that reported earnings have surprised investors with better-than-expected results. In addition, 59% of these companies have exceeded revenue expectations. This bullish trend points to a blended year-over-year earnings growth rate of 11.5% for the S & P 500, the highest since the fourth quarter of 2021.
Several companies are set to report earnings in the upcoming week that have the potential to receive a positive earnings surprise and subsequently a price boost. Among these companies are big media companies, travel and restaurant stocks, as well as some technology and energy firms. The criteria for selection include an expected earnings per share of at least five cents, at least five upwards earnings estimate revisions in the past three months, and a consensus estimate percentage change up at least 5% in the past three and six months.
One notable company on the list is Uber Technologies, which is scheduled to report earnings on Tuesday. The ride-hailing platform has seen 24 upwards revisions in earnings estimates over the past three months. Despite a 4% decline in share price this year, analysts from both Goldman Sachs and Mizuho hold a buy rating on the stock.
Another company to watch is Super Micro Computer, a computing company set to release earnings on Wednesday. The company has seen 13 revisions in earnings estimates in the last three months, leading to a significant 120% increase in stock price in 2021. Super Micro Computer’s exposure to artificial intelligence has been a major driver of its growth, solidified by its recent inclusion in the Nasdaq 100 index.
Finally, energy company Vistra, financial services stock Fidelity National Information Services, and logistics firm Expeditors International of Washington are also expected to report earnings this week. Each of these companies has shown promising growth potential and could be poised for positive earnings surprises.
The ongoing earnings season presents an opportunity for investors to capitalize on potentially lucrative stocks. By carefully monitoring the companies reporting earnings and analyzing their financial performance, investors can make informed decisions that may lead to significant gains in their investment portfolios.