As Wall Street gears up for another busy week of earnings reports, it is essential to look at the performance of the companies that have already released their financial results. So far, the majority of companies have exceeded analyst expectations, with 77% reporting higher earnings than anticipated. This positive trend indicates that the current earnings season is off to a strong start.
To identify stocks that may experience a rise in valuation after reporting earnings next week, Wall Street analysts recommend focusing on companies with strong earnings momentum. The following criteria were used to screen for potential candidates:
– Consensus earnings per share estimates up by at least 10% in the past three and six months
– Buy ratings from at least 55% of analysts covering the stock
– Price target implying at least 10% upside from current levels
**Amazon**: Analysts have significantly raised earnings estimates for Amazon in both the three- and six-month periods. With a consensus price target suggesting a 31% potential upside, the e-commerce giant is expected to deliver strong results. Shares of Amazon have already increased by 18% this year, indicating positive investor sentiment ahead of its earnings report.
**Mastercard**: Earnings estimates for Mastercard have grown by 12% in the past three months and 20% over the past six months. Average analyst price targets indicate an 18% potential rally for the credit card company. With shares already up by 8% this year, Mastercard is poised to deliver solid financial results in the upcoming week.
**Equinix**: The data center company Equinix has seen a 29% increase in earnings estimates over the past three and six months. Despite a 9% decline in its stock price this year, analysts believe that Equinix could rally by 11% post-earnings. This presents an opportunity for investors looking to capitalize on a potential stock rebound.
As earnings season progresses, investors should closely monitor the performance of companies set to report in the upcoming week. By focusing on stocks with positive earnings momentum and strong analyst recommendations, investors can position themselves to benefit from potential post-earnings surges in valuation. Keep a close eye on Amazon, Mastercard, and Equinix as they release their latest financial results and provide guidance for the future.
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