Some companies reporting quarterly results next week are more likely to see their stock prices rise following earnings. The second-quarter earnings season is expected to kick off in the coming week, with 124 companies in the S&P 500 – nearly a quarter of the benchmark – reporting results. Seven of them are also components of the Dow Jones Industrial Average. Quarterly earnings have been positive so far. As of Thursday, 80% of the 61 companies in the S&P 500 had reported profits that beat analysts’ expectations, FactSet data showed. Sixty-one percent also reported positive earnings surprises. FactSet also predicts that the S&P 500 Composite Earnings will grow at an annual rate of 9.3% in the second quarter, which will hit the highest level in more than two years. CNBC Pro sifts through the FactSet of S&P 500 companies on next week’s calendar that could have potential upside and could also receive a post-earnings valuation boost, according to Wall Street analysts. These stocks must meet the following criteria: EPS estimates have been revised upwards 15 times or more in the past three months EPS estimates have been revised down 10 times or less in the past three months Consensus EPS estimates have been revised up at least 10% or more in the past three months 5%, with the average analyst price target rising by at least 5% over the past six months Here are the names CNBC Pro found: Analysts have raised Royal Caribbean’s earnings estimates over the past three months % and 17%. The cruise operator’s average price target has increased 12% over the past three months, and its shares are up 26% year to date. Last month, J.P. Morgan reiterated its overweight rating on Royal Caribbean while raising its target price on the stock to $175 from $173. The bank wrote: “Based on our recent fieldwork and management visits, we believe that RCL, with its improved and differentiated product/destination offering, is best positioned to accelerate market share growth and continue to gain opportunities to beat/improve. ” The company is expected to release quarterly results on Thursday. Another stock that could rise after quarterly results is data storage company Seagate Technology. Shares are already up nearly 21% in 2024, and the consensus price target has increased 8% in recent months. Over the past three months and six months, analysts have raised their profit forecasts by 25% and 64%. Bank of America is sticking to its bullish view on the stock ahead of Seagate’s earnings report after the close on Tuesday. Analyst Wamsi Mohan wrote: “We reiterate Buy on long-term demand trends in cloud computing, recovery of rotation speed and margins from trough levels, and path to higher capacity HAMR HDDs.” Mohan has a price target of $110, indicating that The stock could rise another 5% from Thursday’s closing price. Footwear retailer Deckers Outdoor will report fiscal first-quarter 2025 earnings after the close on Thursday. The stock’s consensus price target has risen 15% over the past three months, with analysts increasing profit estimates by 18% and 25% over the past three months and six months, respectively. Deckers Outdoor shares surged 33% in 2024. Analyst Jay Sole said he expects the Hoka brand to maintain “strong revenue momentum,” which should give Deckers a good chance of beating earnings estimates and raising forecasts. “We believe this type of coverage will boost market sentiment as: 1) market sentiment has weakened recently; 2) DECK’s fundamentals may clear the market’s hurdles. This allows us to see favorable upside surrounding this event /slope to the downside,” analysts wrote. —CNBC’s Fred Imbert contributed to this report.
