Some companies, including Amazon and T-Mobile, will report quarterly results next week, and their stock prices may rise after the earnings releases. These names could be bright spots for the wider market after a difficult week. Disappointing reports from several big tech companies earlier this week weighed on sentiment, causing the S&P 500 and Nasdaq Composite to post their biggest one-day losses in more than a year. Still, earnings season has started on a positive note. As of July 19, the S&P 500’s second-quarter composite profit growth rate was 9.7%, higher than the 8.9% expected at the end of the quarter. It will set the highest annual profit growth rate for the index. According to FactSet data, if this If the trend continues, growth rates will increase since the fourth quarter of 2021. CNBC Pro sifted through the FactSet of companies in the broad market index that are set to report quarterly results next week and could see potential upside. Based on historical patterns, these companies’ share prices are also likely to rise following earnings. We find companies that meet the following criteria: EPS estimates have increased 10% or more over the past three and six months At least 55% of analysts have given the stock a Buy rating The average analyst price target is 15 Upside % or More Take a look at the full list below: Over the past three months and six months, analysts have increased their earnings estimates for Amazon by 190% and 397%, respectively. The e-commerce giant’s consensus price target suggests potential upside of about 31% next year, and 82% of analysts have a buy rating on the stock, making it the most popular stock. The company is expected to release financial reports after the market close on Thursday. BMO Capital Markets analyst Brian J. Pitz reiterated his outperform rating on Amazon in a report Wednesday, calling it a “top pick.” He also raised his price target by $10 to $230, which means the stock could rise nearly 28% from Thursday’s closing price. Shares of the big tech company are up more than 18% so far this year. The analyst said: “As Google Cloud’s growth accelerates, we increase our Q2 2024 AWS growth rate to a market high of 19%, or $26.3B – AWS will achieve sustained revenue through at least 2025 Growth. Telecommunications giant T-Mobile is also likely to post earnings, with FactSet’s consensus analyst price target suggesting the stock could rise 11% next year, having gained 9% so far this year. Here, analysts have raised their profit forecasts by 35% and 50% respectively, and many still insist on being optimistic about the stock before the earnings report is released before the market opens on Wednesday. Citigroup recently maintained a buy rating on T-Mobile and set a target for the stock. The price was raised to $210 from $184, implying potential upside of 20% from Thursday’s closing price. “We remain positive,” analyst Michael Rollins wrote in a July 18 note. Seeing a stable wireless competitive environment, strong postpaid phone growth and aggressive pricing action. ” He expects T-Mobile to report “solid” second-quarter results, with wireless service revenue increasing 3.8% annually, higher than the market consensus of 3.6%. Power management company Eaton, now considered an AI-related data center company, will also report earnings next week. Analysts surveyed by FactSet have raised their profit forecasts by 24% and 47% in the past three months and six months. That’s a sign of growing optimism ahead of the company’s financial report on Thursday morning. Shares of Eaton are up about 22% this year, according to FactSet, and consensus price targets suggest the stock could still rise 18% next year. Other favorite stocks that could rise after earnings next week include Mastercard, MGM Resorts International and S&P Global.
