These companies have momentum heading into quarterly reports next week
Some companies reporting earnings next week have forward earnings momentum that investors may be able to ride. Next week will be busy for fourth-quarter earnings, with 90 companies in the S & P 500 index — and eight members of the Dow Jones Industrial Average — on the docket to report quarterly results. With companies reporting from a variety of sectors, investors will get the latest read on the health of the U.S. consumer. Against this backdrop, CNBC Pro screened for the S & P 500 companies reporting results next week that have earnings momentum at their back. For inclusion in the following table, stocks had to meet the following criteria: Have buy ratings from at least 55% of analysts covering the stock An average analyst price target offering upside of at least 10% Earnings have been revised higher by at least 15% in the past three and six months Nearly 80% of the analysts covering Amazon rate the e-commerce platform and web services provider a buy. Shares in the ” Magnificent Seven ” member have soared 25% over the past three months, and the average price target still implies nearly 31% potential upside. JPMorgan analyst Doug Anmuth named Amazon one of his top picks heading into this earnings season. “Amazon Web Services [AWS] & Stores growth acceleration, North America & International operating income margin expansion, strong AWS margins, & cost discipline support free cash flow ramp despite meaningful 2025 capex growth,” the analyst wrote. “Secular growth, new workloads, & growing GenAI contribution drive AWS growth acceleration, & we came away from re:Invent believing AWS is tightening the GenAI gap through its full-stack approach.” Amazon is scheduled to report its latest earnings next Thursday. Earnings momentum could also boost shares of Visa . The digital payments and credit card processor has surged 29% in just the past six months through Thursday. Approximately 61% of analysts covering San Francisco-based Visa rate the stock a buy, while the average price target for the stock is 16% above where shares are currently trading. Visa is due to report its latest earnings on Tuesday. Last month, Morgan Stanley analyst James Faucette called Visa his top pick in the payments and processing sector heading into 2025. “We are adding V as our Top Pick into 2025 given attractive valuation, benefits from travel + value added services, easing regulatory scrutiny and favorable tactical trading dynamics,” he wrote. Consumer financial services provider Synchrony Financial will also report earnings next Tuesday. Nearly 61% of analysts covering the Stamford, Connecticut-based financial services provider rate it a buy, and the consensus price target implies 24% upside. Synchrony Financial has surged 41% over the past six months and 85% over the past year. Earlier this month, Barclays analyst Terry Ma upgraded Synchrony to overweight from equal weight, citing its cheap valuation among other catalysts. Higher revenue from steps taken to mitigate losses, “(from higher annual percentage rate and incremental fees) started to be realized in 2H24 and should ramp more meaningfully through next year,” the analyst wrote. “We note that our estimate of mitigant contribution to FY26 earnings would have to decline by ~40% in 2026 for SYF shares to be trading at its historical average.” Other companies reporting results next week that have recent earnings momentum at their back include telecommunications provider T-Mobile and health insurer Cigna .
