Results for: Earnings Season

As the earnings season continues, CNBC Pro has identified several stocks with a history of beating earnings expectations and experiencing significant post-earnings gains.

RingCentral, Dine Brands, and Datadog are among the stocks that meet these criteria. RingCentral has historically surpassed earnings estimates 98% of the time, resulting in an average gain of nearly 3%. Dine Brands has a history of beating earnings 81% of the time, with an average post-earnings gain of 2.1%. Datadog has an unblemished record of surpassing analysts’ estimates for quarterly results, with an average post-earnings gain of nearly 4%.

As earnings season progresses, investors should be cautious of companies that have experienced significant reductions in analyst earnings estimates. CNBC Pro has identified 10 S&P 500 companies set to report next week with the most substantial declines in average analyst earnings estimates over the past three months. These companies may struggle to meet market expectations and could face further sell-offs.

Recent earnings reports have triggered significant price movements in major tech stocks. Analysts are monitoring these gaps and breaks to assess their potential impact on future market direction. Meta Platforms and Nvidia are highlighted as examples of post-earnings gaps and recovery attempts. The S&P 500’s overall performance masks the volatility experienced by individual stocks.

First-quarter earnings reports have surpassed expectations, with about 78% of companies reporting positive results, exceeding estimates by a significant margin of 9.5%. This exceeds the long-term average of 4.2% and the average of 7% for the previous four quarters. Major companies such as Alphabet, Meta, Netflix, Goldman Sachs, JPMorgan Chase, GE Aerospace, Caterpillar, and Microsoft have all reported notable earnings beats. Despite ongoing concerns about higher interest rates, the strong economy and job market continue to support earnings growth, with S&P 500 earnings expectations for Q2, Q3, and Q4 all trending upwards.

As the earnings season provides insights into the impact of macroeconomic challenges on companies, industry experts have identified three stocks favored by top analysts for their long-term prospects: Netflix (NFLX), General Motors (GM), and Wingstop (WING). These companies have demonstrated strong performance in their respective sectors and have the potential for continued growth and value creation.

The week of April 18-21, 2023, marks a pivotal juncture in the earnings season, with about 160 S&P 500 companies scheduled to disclose their financial results. Among the highly anticipated reports are those from Apple, Amazon, McDonald’s, Pfizer, and Coca-Cola. As of Friday’s market close, over 200 S&P 500 members had released their first-quarter earnings, with 80% surpassing analyst expectations. However, tech titans like Meta Platforms and IBM have recently stumbled after announcing their financial performance.

CNBC’s ‘Mad Money’ host Jim Cramer highlights the significant events that will influence market movements in the coming week. These events include the highly anticipated Consumer Price Index (CPI) data, the Federal Open Market Committee (FOMC) meeting, and several major earnings reports from prominent companies.

The CNN Money Fear and Greed index showed some improvement, but remains in the “Fear” zone. The S&P 500 closed slightly higher, while the Dow Jones and Nasdaq Composite gained marginally. Tesla shares jumped 12% after strong earnings, while Boeing fell 2.9% following financial results. Over 25% of S&P 500 companies have reported quarterly results, with 79% exceeding estimates. Most sectors closed positive, with consumer staples, consumer discretionary, and utilities leading the gains. Dow Jones, S&P 500, and Nasdaq Composite closed with mixed results. Investors await earnings from Caterpillar, Alphabet, Intel, and Microsoft today.

Prashant Bhayani, an experienced investment professional, recently shared his views on the current economic landscape, offering valuable insights on monetary policy and the upcoming earnings season. His expertise in Asian markets makes his perspectives particularly relevant to investors in the region.

UBS analysts have released a snippet on US stocks, projecting the strongest quarterly earnings growth in over two years. While the earnings season is still ongoing, UBS notes that earnings have surpassed estimates by 8.3% thus far. This is a significant improvement over the 9.7% growth witnessed in Q3 2021, marking the most robust performance since then. UBS anticipates further improvement in Q1 earnings as more data becomes available.