Earnings season is on the horizon, with nearly 30 S&P 500 companies preparing to announce their results next week. Among them are notable firms like Bank of America, Goldman Sachs, and Netflix.
According to data from Bespoke Investment Group, companies that have historically beaten analysts' estimates at least 65% of the time and experienced a subsequent share price increase of at least 1% include Intuitive Surgical and Morgan Stanley. Intuitive Surgical leads this group, having surpassed expectations 89% of the time, with an average post-report gain of 2.58%.
BMO Capital Markets recently initiated coverage on Intuitive Surgical, rating it as outperform, citing its strong growth in procedures and a robust recurring revenue model. Analyst Vik Chopra emphasized the ongoing upgrade cycle of the Da Vinci surgical system and its potential for sustained revenue growth.
Meanwhile, Morgan Stanley has a track record of beating expectations 80% of the time, with a typical post-earnings gain of 1.07%. Bank of America has raised its earnings estimates for Morgan Stanley to $2.81 per share and increased its price target to $250, indicating over 12% upside potential.
Analyst Ebrahim Poonawala highlighted the bank's growth in wealth management and trading, particularly in Asia, suggesting a positive outlook ahead of its earnings report