Several companies are set to report earnings next week, including some potential standouts. Earnings season is approaching, with 22% of S&P 500 stocks expected to report quarterly results next week. So far, most of the constituents reporting third-quarter earnings have beaten earnings and revenue estimates, according to FactSet. Against this backdrop, CNBC Pro sifted through data from Bespoke Investment Group to find companies reporting next week that tend to positively surprise investors and have strong post-earnings performance. The following companies beat Wall Street’s EPS estimates 70% of the time and were up 2% or more on earnings day. Here are the companies that fit this criteria: Data shows that ServiceNow tends to have the largest post-earnings gains on the list, at about 3.3%. The enterprise software giant also has one of the most reliable historical earnings performances, beating analysts’ EPS estimates 90% of the time. Wells Fargo analyst Michael Turin is bullish on the stock. He recently reiterated his overweight rating on ServiceNow and raised his price target on the stock to $1,025 from $935 per share. This new forecast suggests potential upside of more than 11.5% for the stock, which has gained 30.3% this year. “We continue to focus on the highest quality franchises and favor those with strong platform positioning, balanced growth profiles and management teams with proven track records, of which NOW ticks all the boxes,” Turrin said in an Oct. 6 statement. Three criteria. He added that ServiceNow’s Xanadu product launch is a “significant step” in establishing the company’s artificial intelligence vision. ServiceNow announced on Monday that it will invest $1.5 billion in the UK over the next five years as its UK business continues to grow as demand for data center infrastructure and artificial intelligence increases. Power circuit maker Monolithic Power’s profit beat expectations by as much as 88%. Monolithic Power shares are up more than 48.5% this year, outperforming the market. The stock typically rises around 2.6% on earnings days, according to Bespoke data. Oppenheimer analyst Rick Schafer said Monolithic is another name capitalizing on artificial intelligence-related growth. On Tuesday, he named Monolithic among his top semiconductor companies and said he expected good performance and prospects from the leading artificial intelligence company after the group’s revised year in 2023. Beating estimates 88% of the time, with the stock rising an average of 3.2% following the report. The company, which makes radio frequency identification equipment, has had a strong year, with shares up about 160.3% year to date. But analysts polled by FactSet believe the stock price could plummet, as their consensus price target implies about 13.6% downside ahead. Nonetheless, their consensus Buy rating on the stock is unanimous. PI YTD Mountain Impinj Stock.
