Several companies due to report next week could get a boost after their earnings. Third-quarter profit significantly exceeded analysts’ expectations. FactSet data shows that 14% of companies in the S&P 500 have reported results so far, with 79% reporting positive earnings surprises and 64% reporting positive revenue surprises. Another 22% of S&P 500 companies are expected to report financial results next week. To separate the wheat from the chaff, CNBC Pro sifted through FactSet for companies that analysts like and have strong earnings momentum to report in the coming days. To be included in our screen, a stock must meet the following criteria: At least 10 earnings estimate upgrades over the past three months Consensus earnings estimates need to be up at least 5% over the past three and six months Average analyst price target at Must be up 10% or more over the past three months Take a look at the companies featured on the screen below: Analysts have become increasingly bullish on Seagate Technology over the past six months, with consensus earnings estimates up about 54% — Us The most on the screen. Morgan Stanley’s Erik Woodring is a bullish analyst who reiterated an overweight rating and $133 price target on Seagate in an Oct. 15 note to clients . That means there’s about 19% potential upside for the data storage stock, which has already gained about 31% this year. “We believe Wall Street’s modeling of gross margin is fundamentally wrong and expect FY25 gross margin to hit 37%,” Woodring wrote. “We believe gross margin strength will be the driver for September and December Key to Quarterly Earnings Per Share Rise.” The data storage company is scheduled to report earnings after the market closes on Tuesday. Sentiment also improved for healthcare stocks Universal Health Services and HCA Healthcare, based on profit forecasts from the spring. Analyst consensus estimates for HCA Healthcare have increased by about 11% and 9% over the past three months and six months, respectively, a favorable sign ahead of the hospital chain’s scheduled earnings announcement on Oct. 25. Soared by more than 53%. Meanwhile, analysts at Universal Health Services have raised their profit estimates by about 20% over the past three months, and analyst consensus target price increases over the same period are the largest of any company on the list. TD Cowen raised its price targets on HCA and UHS last Wednesday, saying the stocks could get a near-term boost from state-guided increases in Medicaid payments. The investment bank maintained a buy rating while raising its price target on HCA by $75 to $450, implying a potential upside of 8% from Friday’s closing price. TD Cowen upgraded UHS to buy from hold and raised its price target by $63 to $283, suggesting the hospital services provider’s shares could rise another 20%. Shares of HCA Healthcare and Universal Health Services are up about 54% and 55% respectively this year.
