A handful of stocks reporting results in the coming days could give them an edge over their rivals. The week ahead will be another busy one for third-quarter earnings, with nearly one-fifth of the companies in the S&P 500, or 96 companies, set to report their latest results. Various semiconductor manufacturers, travel companies and restaurant names will dominate the results in the coming days. Earnings season has been a success so far. Among the 325 companies in the S&P 500 Index that have announced results, more than 74% have exceeded profit expectations, while 61% of companies have also exceeded analysts’ revenue expectations. The S&P composite earnings growth rate is currently 3.6%, marking the fifth consecutive quarter of annual profit growth. To try to find stocks that could outperform, CNBC Pro sifted through data from Bespoke Investment Group to find stocks reporting next week that have a history of beating analyst estimates and subsequently outperforming. To be included in the table below, stocks must meet the following criteria: Report earnings next week EPS of more than 80% or higher Average daily earnings gain of at least 1.5% Online real estate marketplace Zillow is up 2% The company has had a stellar year this year. Zillow beat profit estimates 83% of the time and gained an average of 1.6% since then. 11 analysts covering Zillow rate it a Strong Buy or Buy, while 11 rate it as a Hold. The average price target represents potential upside of 7%. Last month, Wedbush upgraded Zillow to outperform from neutral. “In addition to potential positive catalysts from lower mortgage rates in Zillow’s core brokerage business, we believe Zillow’s software and services (S&S) initiatives add to the potential upside risks to our expectations,” analyst Jay McCanless wrote. The price target was raised 60% from $50 to $80. This updated forecast means Zillow stock could rise 39% from Wednesday’s closing price. Pinterest has beaten analyst estimates 86% of the time and has historically gained 3% on the back of strong results. The social media platform’s shares have fallen nearly 14% this year. Most analysts are bullish on the platform, and the average price target implies 33% upside potential. Earlier this month, Bank of America reiterated a buy rating and $45 price target, about 38% above Pinterest’s closing price on Wednesday. Analyst Justin Post said he’s optimistic about the new artificial intelligence tools the company showed off at its Pinterest Presents event. “Products outlined at the event include: 1) Performance+ suite (a growing set of artificial intelligence and automation tools), 2) ROAS bidding solution, 3) Promotional features, 4) CAPI Connect, 5) Advertising expansion to 30 new countries /region, and 6) a new directory upload tool (still under development),” he wrote. Marketing software developer HubSpot beat profit expectations and typically rises nearly 4% after quarterly results. Shares have fallen 4% this year. Last week, Evercore ISI added HubSpot to its Tactical Outperform list while keeping its official rating unchanged. Analyst Kirk Materne’s $610 price target is about 9% higher than where HubSpot stock currently trades. “After underperforming the S&P and (iShares Expanded Tech-Software Sector ETF) over the past 1 and 3 years, we believe the risk/reward associated with HUBS has improved at current levels and in our most recent partner surveys. Becoming more attractive suggests business levels appear to be stabilizing,” Evercore ISI analysts wrote. Analysts are generally bullish on HubSpot, with the average price target likely to rise 11%.
