Next week, several companies in the S&P 500, including Nvidia and Ralph Lauren, are expected to report their earnings, which could lead to a positive reaction in their stock prices based on historical trends. According to Bespoke Investment Group, over a dozen firms will release their financial results starting May 18, as the first-quarter earnings season approaches its conclusion.
Currently, about 90% of S&P 500 companies have reported their earnings, with 84% exceeding analysts' earnings per share (EPS) estimates, indicating a robust earnings season. Bespoke identified stocks likely to see gains based on criteria such as a 75% or higher EPS beat rate and an average earnings day gain of at least 1%.
Nvidia, scheduled to report on May 20, has seen its stock rise 74% over the past year, driven by growth in its data center business, which constitutes about 90% of its revenue. Historically, Nvidia has surpassed EPS estimates 86% of the time, with an average post-earnings gain of 1.81%.
Ralph Lauren, reporting on May 21, has beaten profit expectations 87% of the time and typically sees an average increase of 1.22% in its stock price following earnings beats, although it has experienced a nearly 6% decline year-to-date despite a 23% rise over the past year.
This upcoming earnings week could provide further momentum for these stocks, reflecting broader trends in their respective sectors