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These stocks reporting earnings next week have momentum on their side

Chaim Potok by Chaim Potok
October 25, 2024
in Investing
These stocks reporting earnings next week have momentum on their side
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A handful of companies reporting results in the upcoming week could see an earnings-powered boost. Next week is slated to be the busiest one of the earnings season, with one-third of the S & P 500 and 10 names in the 30-stock Dow Jones Industrial Average due to report their latest earnings. Megacap titans Microsoft , Amazon and Apple will headline the week, alongside other names within the travel, pharmaceuticals, energy and restaurant sectors. So far, about 36% of the S & P 500 companies have reported, and more than 7 out of 10 have posted an earnings beat, according to FactSet. CNBC Pro screened FactSet for the companies reporting earnings next week that could receive a positive earnings surprise and see a jump in their shares. To be included in the table, the stocks had to meet the following criteria: Have buy ratings from at least 55% of the analysts covering Have earnings per share estimates up at least 10% in the past three and six months Expected to rise at least 15% in the next 12 months Here is a look at the stocks that stood out. Insurance firm MetLife is slated to report earnings next Wednesday. In all, 65% of analysts covering the name have rated it as a buy, while the average price target implies a potential upside of about 30%. Earlier this month, TD Cowen initiated coverage of the name at a buy rating . “MET’s attractive mix includes two-thirds of earnings from group benefits and international. We forecast 10%+ EPS growth with relatively low macro sensitivity,” wrote TD Cowen analyst Andrew Kligerman. Shares of MetLife have soared 25% this year. “Magnificent Seven” titan Amazon was another name on the list. The stock has climbed nearly 25% in 2024. More than eight out of 10 of analysts covering Amazon view it as a buy, and the average price target suggests about 31% upside. Ahead of the e-commerce giant’s next earnings report, due out Thursday, Bank of America reiterated the stock as a buy , while Citi stood by Amazon as a top stock pick . “While the 2024 holiday shopping season (beginning on Black Friday) has 5 fewer shopping days vs. last year, based on our analysis of 2019 results we don’t believe it should impact overall consumer and advertiser spend,” Citi wrote. Aptiv could also see some big upside after it reports earnings on Thursday. Shares of the automotive component manufacturer have tumbled nearly 23% this year. But Wells Fargo thinks the stock could rise 27% from its Thursday close, per its recently revised price target of $87, up from $78. The bank recently upgraded Aptiv to overweight from equal weight. “We still see well-above-average growth despite recent moderation,” analyst Colin Langan wrote. Most analysts are similarly bullish on Aptiv, with 61% of those covering the name rating it as a buy. Shares of Aptiv could rise another 29% from here, according to the average price target. Other names included in the list were Magnificent Seven member Alphabet and card services firms Mastercard and Visa .



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