Earnings season is gaining momentum, with approximately 80 S&P 500 companies scheduled to report next week. So far, 87% of the 40 companies that have reported have surpassed analysts' expectations, according to FactSet data.
Among those with a strong track record of beating earnings estimates is Deckers Outdoors, which has exceeded expectations 94% of the time and typically sees a 1.54% increase in stock price on earnings release days. Jefferies recently upgraded Deckers to a buy rating, raising its price target to $130, suggesting a 22% upside from its recent close.
Analyst Blake Anderson highlighted Hoka's product innovation potential and UGG's resilience. ServiceNow, another company on the list, is expected to report earnings Wednesday and has an average stock jump of 2.7% post-earnings. Goldman Sachs reiterated its buy rating, emphasizing the importance of ServiceNow's relevance in the enterprise AI sector.
T-Mobile, reporting Thursday, has beaten estimates 82% of the time and received an upgrade from Bank of America, which maintains a $220 price target, indicating a 17% upside. Analysts generally view T-Mobile favorably, with 26 out of 31 giving it a buy or strong buy rating.
Overall, the upcoming earnings reports from these companies could present significant investment opportunities, particularly for those focused on firms with a history of exceeding expectations