Some of the companies reporting quarterly results next week are more likely to see their stocks get a post-earnings bump. The second-quarter earnings season is due to ramp up in the week ahead, with 124 companies in the S & P 500 — or nearly one-quarter of the benchmark’s constituents — on the slate to post results. Seven are also components of the Dow Jones Industrial Average. Quarterly earnings so far have been positive. FactSet data showed that as of Thursday, 80% of the 61 companies in the S & P 500 that had already reported topped analyst earnings estimates. Sixty-one percent also posted a positive revenue surprise. FactSet also predicts a blended year-over-year earnings growth rate of 9.3% for the S & P 500 in the second quarter, which would mark its highest rate in more than two years. CNBC Pro screened FactSet for the S & P 500 companies on next week’s calendar that could have potential upside, according to Wall Street analysts, and could also receive a post-earnings boost in valuation. These stocks had to meet the following criteria: Have 15 or more upward earnings per share estimate revisions in the past three months Have 10 or less downward earnings per share estimate revisions in the past three months Consensus earnings per share estimates up at least 10% in the past three months, and up at least 5% in the past six months Average analyst price target is up at least 5% in the past three months Here are the names CNBC Pro found: Analysts have lifted Royal Caribbean ‘s earnings estimates in the past three and six months by 15% and 17%, respectively. The cruise operator’s average price target has grown 12% over the last three months, and its stock has jumped 26% year to date. Last month, JPMorgan reiterated its overweight rating on Royal Caribbean, simultaneously lifting its price target on the stock to $175 from $173. “Based on our recent fieldwork and mgmt access — we see RCL as best positioned for accelerating market share gains and continued beat/raise opportunity given its improved & differentiated product/destination offering,” the bank wrote. The company is expected to release its quarterly results on Thursday. Another stock that could rise after its quarterly results come out is data storage firm Seagate Technology . Shares have rallied nearly 21% in 2024, and the consensus price target has gained 8% in recent months. Analysts have revised their earnings estimates upwards by 25% and 64%, respectively, in the past three and six months. Ahead of Seagate’s earnings announcement after the closing bell on Tuesday, Bank of America stood by its bullish view for the stock. “We reiterate Buy on secular demand trends from Cloud, rev and margin recovery from trough levels and path to higher capacity HAMR HDDs,” wrote analyst Wamsi Mohan. Mohan’s price target of $110 indicates the stock could add another 5% from its Thursday close. Footwear retailer Deckers Outdoor is due to report its fiscal first-quarter 2025 earnings after the market closes on Thursday. The stock’s consensus price target is up 15% over the last three months, and analysts have boosted their earnings estimates by 18% and 25% over the last three and six months, respectively. Shares of Deckers Outdoor have soared 33% in 2024. Ahead of its quarterly results, UBS reiterated its buy rating and 12-month price target of $1,265, which is about 42% higher than where the stock closed on Thursday. Analyst Jay Sole said he expects the Hoka brand has maintained “robust revenue momentum,” which should give Deckers a good chance of beating earnings estimates and raising its forecast. “We believe this type of print will boost sentiment because: 1) Sentiment has weakened recently; and 2) DECK’s fundamentals likely clear the market’s bar. This causes us to see a favorable upside/downside skew around the event,” the analyst wrote. — CNBC’s Fred Imbert contributed to this report.
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