Earnings season is kicking into high gear, and there are some companies to keep an eye on that have a history of not only beating expectations but also rallying posting their reports. Next week marks the second full week of the season, with key names such as Alphabet , Amazon and Tesla set to report. Following this week’s beats from big banks Goldman Sachs , Morgan Stanley and Bank of America , investors will be watching to see if these upcoming names and others will also surpass Wall Street’s expectations. Using Bespoke Investment Group data, CNBC Pro screened for stocks reporting next week that have both beaten the Street’s consensus earnings estimate at least 75% of the time and moved at least 1.5% higher in the trading session following the results. Here’s the list: Chipotle is one of the names that made the list. The stock has beaten consensus estimates nearly eight out of 10 times and rallied an average of 1.8% on earnings day. Heading into its report after the bell on Wednesday, UBS has taken a bullish stance on the name. The firm sees Chipotle as being “well positioned” for both traffic momentum and sales outperformance through the rest of the year. “We view Chipotle as one of the best positioned concepts to sustain sales momentum in a tough macro given customer brand affinity and a solid value for the money proposition,” analyst Dennis Geiger wrote in a Thursday note. The firm has a buy rating on the stock with a price target of $70 over the next 12 months, which implies about 31% upside from Thursday’s close. This comes as the company has faced backlash from customers on social media over portion sizes. Though shares have dropped about 8% in the last three months, the stock has gained around 16% in 2024, hitting a 52-week high of $68.55 on June 18. CMG YTD mountain Chipotle, year-to-date Like Chipotle, ServiceNow reports after the bell Wednesday and qualified for the screen with a beat rate of 90%. The stock has usually rallied 3.1% on earnings day, which is one of the highest gains on the list. Despite viewing the company’s second-quarter results next week as not likely to be a material positive catalyst for shares, BofA still believes the name is a top pick. The firm has a buy rating on the stock with a target of $900. This implies nearly 22% upside from Thursday’s close. “ServiceNow is in the early stages consolidating a large market opportunity (IT and custom applications addressable market of $64.7 billion), with the leading cloud platform for workflow automation,” analyst Brad Sills said in a Thursday note. The analyst added that while the stock isn’t cheap, its valuation is “not unreasonable.” ServiceNow is trading at a forward multiple of around 55 times earnings. Deckers Outdoor is another name that made the cut. The stock has the fourth highest rate of surpassing expectations on the list at 94%, which has sent the stock around 1.7% higher on average. Though shares have surged nearly 33% this year, the stock has plunged more than 19% since hitting its all-time high of $1,106.89 in early June. DECK mountain 2024-06-03 Deckers Outdoor, 06/03/2024 to present Wedbush Securities thinks this dip presents a buying opportunity, with analyst Tom Nikic citing high brand heat at the company’s core brands, Hoka and Ugg. The firm has an outperform rating on the stock and a 12-month price target of $1,030, implying 16% upside from Thursday’s close. Wedbush notes that while the company has been a “consistent beat-and-raiser” in recent years, the company’s numbers for the first quarter have historically not moved the needle much. As a result, the firm expects Deckers’ first-quarter results for fiscal 2025 next week to likely be a “fairly modest raise.”
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