Many stocks are scheduled to report earnings next week, and if history repeats itself, some could make notable moves. More than 150 companies in the S&P 500 are scheduled to release financial reports next week, according to FactSet. This comes during what is shaping up to be a strong earnings season, with nearly four out of five companies reporting that they beat Wall Street expectations. Looking ahead to next week, Bespoke Investment Group has selected stocks that are scheduled to report with the potential to benefit from strong earnings. To find these, Bespoke looked for companies that have historically outperformed their earnings per share at least 75% of the time and whose stock price has risen at least 2% in a typical post-earnings session. Among the stocks that will be reported next week, the stocks that passed the examination are as follows. By both metrics, HubSpot appears to be the most promising of the companies reporting next week. The enterprise technology provider, which is scheduled to report on May 1, beat revenue estimates by 100% and historically has continued to grow at nearly 3.9%. HubSpot has also been in the news in recent weeks as a potential acquisition target for Google’s parent company, Alphabet. Earlier this month, Bank of America named HubSpot one of its favorites in customer relationship management and infrastructure. The stock is up almost 10% through Thursday this year, after more than doubling in 2023. The average analyst surveyed by LSEG rates the stock a Buy and expects the stock to rise another 10.3% next year. Wingstop reported on May 2nd that he is one of the bespoke screens that consumers can choose at will. This restaurant chain beats its earnings per share expectations 77% of the time, and its average after-earnings increase is 3.75%. The Texas-based company’s stock has soared more than 44% in 2024, adding to its 86% rise last year. But Wall Street expects the stock to fall more than 4% over the next 12 months, according to LSEG. Most analysts have maintained their ratings, but Stevens’ Jim Salera issued an Overweight rating earlier this month ahead of Wingstop’s earnings. He said the company offers “scarcity” as one of the few restaurant stocks that offers same-store sales growth and exposure to poultry trends, which could help justify the premium valuation. said. “Of all the restaurants we covered, we believe that WING has perhaps the most unique and compelling growth story,” he wrote to customers. “This brand is [average unit volume]Booking Holdings was also named to the Bespoke list, with earnings per share beating street estimates by 90% and rising about 2.1%, following a typical performance. Booking.com’s parent company is down about 1% this year after soaring 76% in 2023, according to LSEG, but the majority of analysts believe Booking.com stock has an average price target of 13%. This suggests that there is a possibility for the stock price to rise further, and we expect it to rebound in the future. The company will report its results on May 2nd, and one of the analysts reporting is Barclays’ Trevor Young, who still likes the stock despite its weak growth outlook this year and rates it Overweight. “Booking is difficult,” he said. Barclays believes that “some of these dynamics have reversed and remains the most constructive situation” for stocks.
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