Earnings Season: Stocks Poised to Beat Expectations Next Week

As earnings season continues, several companies reporting next week are showing strong potential to exceed Wall Street’s expectations, potentially leading to stock gains. Approximately a quarter of the S&P 500 – 121 companies – will report earnings, including Dow Jones Industrial Average components Walt Disney and McDonald's, alongside a significant number of restaurant chains, media companies, and gig economy platforms.

CNBC Pro, utilizing data from Bespoke Investment Group, identified companies with a history of beating analysts’ earnings per share (EPS) estimates at least 75% of the time, and experiencing an average first-day gain of 2% or more following their reports.

Repligen, a life sciences company reporting next Tuesday, has historically seen an average 3.1% increase in its stock price after each earnings release. Rothschild & Co. Redburn recently initiated a 'buy' rating for Repligen, with a 12-month price target of $160, representing a potential 41% upside from current levels. Analyst Natalya Davies highlighted the company’s leadership in continuous manufacturing and projected strong revenue and EPS growth.

HubSpot, a software developer, is scheduled to report next Thursday and has averaged a 3.1% share price increase following its earnings announcements. Bank of America recently resumed coverage with a 'buy' rating and a $300 price objective, suggesting a potential 32% rally. Analyst Matt Bullock believes the current stock price offers an attractive entry point, anticipating a reacceleration of growth to 20% this year, despite concerns surrounding AI disruption.

Other companies with a consistent track record of earnings beats reporting next week include Shopify, RingCentral, and The Trade Desk.