Earnings season is in full swing, with many investors eagerly awaiting the financial results of their favorite companies. This article will highlight several stocks that have a history of outperforming analyst expectations and could potentially experience positive market reactions following their earnings announcements.
Customer relations management company HubSpot takes the top spot on our list, boasting a flawless record of beating earnings and revenue estimates. After announcing its results, the company’s shares have historically surged nearly 4.8%. Bank of America has recently named HubSpot as one of its top picks, citing potential tailwinds from increased interest in artificial intelligence. With its shares already up 93% year to date and currently trading above the consensus analyst price target, HubSpot seems to have captured investor attention.
Known for its iconic iPhone, iMac, and iPad, Apple is set to report its results this week. Over the years, the Cupertino-based company has consistently surpassed earnings estimates 89% of the time and revenue estimates 78% of the time. Following its earnings reports, Apple’s shares have risen an average of 1.37%. With approximately 80% of analysts rating the stock as a buy, there is a positive sentiment surrounding Apple. However, the consensus analyst price target suggests a potential pullback or an upward revision of targets.
Yum China: Tasty Earnings Potential
Yum China, the Chinese restaurant holdings company that operates popular chains like KFC and Pizza Hut, has a track record of beating earnings estimates 73% of the time. Historically, the stock has added approximately 1.13% after releasing its earnings report. While Yum China’s performance has lagged behind the wider market, the average price target on its shares suggests they could rally more than 21%. Investors will be closely following the company’s quarterly earnings announcement, scheduled for Monday after the bell.
Footwear maker Steve Madden has also made our list as a consistent outperformer. The company has beaten earnings estimates 75% of the time and surpassed revenue forecasts 71% of the time. On average, the stock has risen 1.67% on the day following its earnings announcement. Despite underperforming the broader market, with shares trading 6.3% and 5% higher in 2023 and over the past 12 months, respectively, Steve Madden remains a stock to watch. The company will release its results on Wednesday before the bell.
With earnings season hitting its peak, investors are eagerly anticipating the financial reports of numerous companies. While outperforming analyst expectations is not a guarantee of stock price appreciation, historical trends suggest that these companies have the potential to deliver positive market reactions following their earnings announcements. HubSpot, Apple, Yum China, and Steve Madden have demonstrated consistent performance and could be worth keeping an eye on during this earnings season. However, as with any investment, further due diligence is necessary to make informed decisions.
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