As earnings season progresses, several tech and software companies are demonstrating a strong tendency to outperform analyst expectations and see their stock prices rise consequently. Paymentus, Shopify, and HubSpot are among the notable names with a history of exceeding earnings-per-share estimates, often followed by significant stock gains.
These companies have beaten EPS estimates at least 80% of the time, with average post-earnings stock jumps of 1.5% or more. Investors are closely watching their upcoming reports for further indicators of sustained growth and market leadership.
As the current earnings season heats up, a select group of companies are demonstrating a consistent ability to surpass Wall Street's financial forecasts and subsequently witness significant stock price appreciation. Sectors including technology, industrials, healthcare, and consumer goods are slated to release their latest quarterly figures. Among these are prominent names like Paymentus, Shopify, and HubSpot.
CNBC Pro, in collaboration with Bespoke Investment Group, has identified companies scheduled to report earnings in the upcoming week that have a strong track record. These companies have historically exceeded earnings-per-share estimates at least 80% of the time, with their stock prices seeing an average increase of 1.5% or more on the subsequent trading day. A total of 14 companies met these criteria.
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Paymentus stands out with the most robust earnings-day performance in the analyzed group. This provider of cloud-based billing and payment technology boasts an impressive 88% EPS beat rate, accompanied by an average stock gain of 3.6% on the day following its reports. Paymentus is set to announce its third-quarter results after market close on November 2nd. Recently, the Charlotte-based company achieved premier-level status in Guidewire's PartnerConnect program, bolstering its integration capabilities with the insurance software provider. Analyst sentiment towards Paymentus is divided, with five out of nine analysts recommending a buy or strong buy, four holding, and none recommending a sell.
E-commerce software provider Shopify has a history of beating earnings estimates 82% of the time, with its shares typically rising by an average of 3.1% on earnings announcement days. Shopify is scheduled to release its third-quarter earnings before market open on November 3rd. Its second-quarter performance showcased substantial growth exceeding 30% in gross merchandise volume, revenue, gross profit, and free cash flow. The upcoming report will offer insights into the company's projections for the crucial holiday shopping season. Shopify has recently broadened access to its agentic commerce platform, enabling developers to build and secure applications and storefronts. According to LSEG data, analysts are largely bullish on Shopify, with 39 out of 51 analysts rating it a buy or strong buy, alongside 11 holds and one sell.
HubSpot demonstrates the most exceptional earnings track record within this cohort. The customer-relationship-management software company has achieved a perfect 100% record in beating EPS estimates, with its stock price averaging a 2.2% increase in the subsequent trading session. HubSpot continues to prioritize the development of AI tools for sales, marketing, and customer service teams, highlighted by its deepened partnership with OpenAI announced in September. HubSpot is slated to report its third-quarter results on November 4th. Despite its strong performance, Wall Street's analyst consensus shows 12 out of 37 analysts recommending a buy or strong buy, while 24 rate it a hold, and one has an underperform rating, according to LSEG data.
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