Get ready for a packed earnings week as tech giants like Amazon, Apple, Microsoft, and Meta Platforms are set to release their quarterly results. CNBC Pro has identified several S&P 500 companies, including Amazon, showing strong momentum with significant analyst upgrades and positive outlooks.
Amazon, in particular, is seeing massive upward revisions in earnings estimates, with analysts at Truist Securities maintaining a ‘buy’ rating and a price target suggesting significant upside. Other notable companies with accelerating earnings momentum include IQVIA Holdings and Vertiv Holdings.
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The upcoming week marks a significant period for the stock market as a substantial number of S&P 500 companies, including tech titans from the 'Magnificent Seven,' are scheduled to release their earnings reports. Over 150 companies are expected to share their financial results, with a particular focus on Wednesday and Thursday when Apple, Microsoft, Meta Platforms, and Amazon will present their figures.
CNBC Pro's analysis, utilizing data from FactSet, identified S&P 500 companies exhibiting strong earnings momentum heading into their reports. These criteria include analysts increasing earnings estimates by at least 10% in the last three and six months, a minimum of 55% of analysts maintaining 'buy' or 'overweight' ratings, and an average upside to the price target of 20% or more.
Amazon (AMZN) emerges as a frontrunner, with investors anticipating robust performance. Earnings estimates for the e-commerce and cloud services giant have been revised upward by over 400% in the past 90 days. Truist Securities reiterated its 'buy' rating and a $320 price target, suggesting a 38% increase from recent trading levels. Analyst Youssef Squali highlighted expectations for sequential acceleration in AWS's year-over-year growth for the fifth consecutive quarter, driven by both core services and AI-related workloads.
Another notable company on the list is IQVIA Holdings (IQV). Despite being down nearly 8% year-to-date, 80% of analysts covering the healthcare information technology firm rate it as a 'buy' or 'overweight.' Slated to report on Tuesday, IQVIA has faced headwinds from 'misplaced fears' regarding its business mix and the impact of AI, according to Deutsche Bank analyst Justin Bowers. He noted that recent industry checks and favorable macro trends, such as strengthening biotech funding and increased M&A activity, point to a cyclical recovery in end-market demand, increasing the probability of positive surprises.
Vertiv Holdings (VRT), a data center infrastructure company specializing in power and cooling solutions, is also generating excitement. Analysts have revised its earnings-per-share estimates up by an impressive 393% in the last three months. Baird initiated coverage with an 'outperform' rating and a $370 price target, implying a 27% upside. The company's alignment with NVIDIA on AI infrastructure projects and its substantial capital allocation strategy are seen as key strengths.
Other companies highlighted by CNBC Pro's screening include Generac Holdings (GNRC), CBRE Group (CBRE), and Cigna (CI), all of which exhibit positive momentum heading into their earnings releases.
This article was originally published on CNBC.
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