Several S&P 500 companies are exhibiting strong earnings momentum this week, with Capital One and General Motors among those attracting significant analyst optimism. A screening process identified these companies based on rising earnings estimates, a high percentage of buy ratings, and projected stock upside.
The positive trend extends to the healthcare and hospitality sectors, with Abbott Laboratories and Las Vegas Sands also showing increased analyst confidence due to accelerating revenue growth and strong regional economic factors, respectively.
This week is shaping up to be a significant one for the stock market, with approximately 70 S&P 500 companies scheduled to report their earnings. Among these, several are showing strong upward momentum, attracting increasing optimism from Wall Street analysts. Companies like Capital One and General Motors are leading this charge, but the positive trend extends across various sectors including tech, consumer goods, and airlines.
CNBC Pro, in collaboration with FactSet, has identified stocks exhibiting accelerating earnings momentum. The screening criteria focused on companies with consensus earnings per share estimates that have increased by at least 35% in the past three and six months. Additionally, these stocks must have buy ratings from at least 55% of covering analysts and average price targets implying an upside of 10% or more.
Capital One and General Motors Lead the Pack
Following a finance-heavy earnings week, Capital One (COF) has emerged as a strong contender. Its consensus earnings estimate has surged over 65% in the last three months, reaching $5.50 per share. A notable 63% of analysts covering the stock have a buy rating. Jeffrey Adelson, an analyst at Morgan Stanley, reiterated an overweight rating, citing expected positive performance compared to other consumer finance companies. Adelson highlighted the multi-year network and expense synergies that are poised to boost EPS growth in 2027-28, as Capital One's purchase volumes convert to Discover's higher interchange network. He also noted that improving credit conditions are expected, with Discover assisting in shifting Capital One's pro forma loan book mix away from less consumer subprime segments.
General Motors (GM) also features prominently on the list, despite an anticipated challenging earnings season for automakers. Analysts project a 32% upside for GM, with its consensus earnings estimate soaring over 100% in both the past three and six-month periods. Emmanuel Rosner of Wolfe Research commented that GM has the 'clearest path to generate continued earnings growth through 2027+, robust FCF and strong capital returns.' Rosner also anticipates a potential guidance raise for the 2026 fiscal year, with incremental efficiencies expected to offset inflationary input costs.
Healthcare and Hospitality Sectors Show Momentum
The positive earnings momentum is not limited to the financial and automotive sectors. Healthcare and hospitality companies are also seeing increased analyst interest. Abbott Laboratories (ABT) has seen estimates rise, with over 64% of analysts holding a buy rating. Despite the MedTech sector lagging the S&P 500 for much of 2026, Abbott's stock has climbed 17.3% in the past three months. Barclays initiated coverage with an overweight rating, expecting accelerating revenue growth for ABT over the next two years, driven by a comeback in areas like nutrition and diagnostics, alongside continued success in its medical device segment.
Las Vegas Sands (LVS), the owner of Marina Bay Sands, has experienced a remarkable surge in its consensus earnings estimate, up 360% to 74 cents per share over the past six months. This growth is occurring despite a recent dip in its stock price. The company's strong focus on the Asia-Pacific region, combined with long-term growth prospects in Macao's gaming industry and the economic impact of major events like the Formula 1 Singapore Grand Prix, are likely contributing factors.
This earnings season is poised to reveal key insights into the performance of major corporations and the underlying strength of various economic sectors.
