As we enter the heart of earnings season, investors are eagerly anticipating the results from a wide range of companies in the S & P 500 index. According to FactSet, 78% of the companies that have reported so far have posted an earnings surprise to the upside, while 59% have also beaten revenue expectations. This is a positive sign for the overall health of the market, as it suggests that companies are performing better than expected.
One company that investors should keep an eye on is ride-hailing platform Uber Technologies. Despite slipping 4% this year, Uber has received 24 upwards revisions in the past three months. This indicates that analysts are bullish on the company’s prospects and expect it to outperform in the coming quarter. Similarly, computing company Super Micro Computer is another name to watch, with analysts revising earnings estimates 13 times in the last three months. With a soaring stock price of 120% in 2024, Super Micro Computer has proven itself as a strong player in the market.
Analysts at Goldman Sachs, Mizuho, and Barclays have all reiterated their buy ratings on Uber Technologies and Super Micro Computer, respectively. These endorsements from reputable financial institutions further validate the potential for these companies to deliver a positive earnings surprise and receive a price boost. In particular, Barclays analyst George Wang expects Super Micro Computer to raise its revenue forecast for the September quarter and fiscal 2025, driven by increased AI server deployment.
Other Contenders
In addition to Uber Technologies and Super Micro Computer, other companies on the list that could see a post-earnings price boost include energy company Vistra, financial services stock Fidelity National Information Services, and logistics firm Expeditors International of Washington. These companies have met the criteria of having at least five upwards earnings estimate revisions in the past three months and a consensus estimate percentage change of at least 5% in the past three and six months.
The upcoming week presents an opportunity for investors to capitalize on potential winners in the third-quarter earnings season. Companies like Uber Technologies, Super Micro Computer, Vistra, Fidelity National Information Services, and Expeditors International of Washington are all poised to deliver strong results and could see their stocks soar as a result. Investors should pay close attention to these companies and consider the recommendations of analysts to make informed investment decisions.