![Stocks reporting next week have strong earnings momentum](https://news7g.com/wp-content/uploads/2024/07/107190373-1675796003229-gettyimages-1463870138-029a6771_ba1de0b3-c2ff-44a3-bf63-256169e7b95c-780x470.jpeg)
Several companies reporting quarterly results next week are likely to see their stocks rise after they release earnings. The second-quarter earnings season is expected to pick up steam next week, with 124 companies in the S&P 500 — or nearly a quarter of the benchmark’s components — set to report results. Seven are also components of the Dow Jones Industrial Average. Earnings so far have been positive. As of Thursday, 80% of the 61 companies in the S&P 500 that had reported had beaten analysts’ earnings estimates, according to FactSet data. Sixty-one percent also posted positive revenue surprises. FactSet also forecasts a 9.3% year-over-year composite earnings growth rate for the S&P 500 in the second quarter, which would mark the fastest pace in more than two years. CNBC Pro screened FactSet for S&P 500 companies on the schedule next week that are likely to rise, according to Wall Street analysts, and could also get a post-earnings boost to valuations. These stocks had to meet the following criteria: There were 15 or more upward earnings-per-share estimate revisions over the past three months There were 10 or more downward earnings-per-share estimate revisions over the past three months The consensus earnings-per-share estimate increased at least 10% over the past three months and increased at least 5% over the past six months The average analyst price target increased at least 5% over the past three months Here are the names CNBC Pro found: Analysts have raised Royal Caribbean’s earnings estimates by 15% and 17% over the past three and six months, respectively. The cruise operator’s average price target has increased by 12% over the past three months, and the company’s stock is up 26% year-to-date. Last month, JPMorgan reiterated its overweight rating on Royal Caribbean, raising its price target on the stock to $175 from $173. “Based on recent on-the-ground work and our access to management — we see RCL as best positioned to accelerate market share gains and continue to outperform/increase opportunities with improved and differentiated product/destinations,” the bank wrote. The company is scheduled to report quarterly results on Thursday. Another stock that could rise after its quarterly results is data storage company Seagate Technology. The stock has risen nearly 21% through 2024, and the consensus price target has increased by 8% in recent months. Analysts have revised their earnings estimates upward by 25% and 64% over the past three and six months, respectively. Ahead of Seagate’s earnings announcement after the closing bell on Tuesday, Bank of America maintained its bullish stance on the stock. “We reiterate Buy based on long-term demand trends from the Cloud, a rebound in revenue and margins from troughs, and a path to higher capacity HAMR drives,” analyst Wamsi Mohan wrote. Mohan’s $110 price target suggests the stock could rise another 5% from Thursday’s close. Footwear retailer Deckers Outdoor is expected to report first-quarter fiscal 2025 earnings after the market closes on Thursday. The stock’s consensus price target has increased 15% over the past three months, and analysts have increased their earnings estimates by 18% and 25% over the past three and six months, respectively. Deckers Outdoor shares have soared 33% in 2024. Ahead of the quarterly results, UBS reiterated its buy rating and 12-month price target of $1,265, about 42% above where the stock closed Thursday. Analyst Jay Sole said he expects the Hoka brand to maintain “strong revenue momentum,” which would give Deckers a good chance to beat earnings estimates and raise its guidance. “We believe this type of print will boost sentiment as: 1) Sentiment has weakened recently; and 2) DECK fundamentals are likely to outperform the market, which leaves us with a favorable upside/bearish bias around this event,” the analyst wrote. — CNBC’s Fred Imbert contributed to this report.