These stocks reporting next week usually top estimates, gain afterward
Looking at history, several stocks scheduled to soon report earnings could beat estimates and outperform the market the day after. Second-quarter earnings have impressed analysts so far, with the majority of S & P 500 companies having posted positive earnings per share and revenue surprises. Several leading stocks are on deck to post results next week, including Microsoft , Mastercard , Lam Research , Spotify and UnitedHealth Group . Strong earnings have helped power the broad market to new all-time highs this month, with the S & P 500 on Thursday scoring its 12th all-time-high close of the year. To find potential winners, CNBC Pro screened data from Bespoke Investment Group for stocks reporting next week that have a track record of exceeding analysts’ consensus earnings forecasts and then gaining the next trading day. The companies below are among a handful of names soon to report that have beaten earnings per share estimates 80% of the time and, on average, gain at least 1% or more during the session after posting their latest financials. Take a look: Mastercard reports earnings on Thursday. The credit card processor has historically beaten analysts’ earnings estimates 93% of the time, and on average has gained 1.7% following the earnings report. Shares of Mastercard are up roughly 7% this year. The stock is positively viewed by the Street. Of 40 analysts covering Mastercard, 30 have a strong buy or buy rating on the shares. Deutsche Bank analyst Nate Svensson is bullish on Mastercard and has a $650 price target on shares, suggesting more than 15% potential upside based on Thursday’s close. In a late June note to clients, he named Mastercard as one of several “high quality compounders” among payments and processing providers. Booking Holdings also routinely beats the Street, with a history of topping earnings expectations 90% of the time and seeing an average postearnings gain of 2%. The travel company is set to report results next Tuesday. Shares of the Priceline and OpenTable parent are up more than 13% year to date, making Booking’s valuation appear “fairly full and several turns higher than the long-term average,” according to a recent note from Barclays analyst Trevor Young. Young said last week that “this full valuation combined with a generally in-line 2Q print/3Q guide might keep a lid on shares near term, but we again highlight BKNG as the best quality name to own within the group on a relative basis.” Other stocks that matched the search criteria for potential outperformers include semiconductor companies Lam Research and Monolithic Power Systems , which have a track record of rising 1.3% and 2.5%, respectively, on the next trading day after earnings.
<
