As we move further into the third-quarter earnings season, several stocks are gaining momentum with notable analyst upgrades and strong growth forecasts. With 64% of S&P 500 companies reporting, earnings growth for the quarter has surpassed 9%, suggesting companies with positive earnings momentum could be poised for even more upside. This watchlist focuses on stocks with increasing analyst earnings forecasts, substantial upside to price targets, and strong buy ratings from at least half of analysts. Here’s what to watch as these companies head into their earnings reports next week:
Constellation Energy (NASDAQ: CEG) – A Strong Performer in Clean Energy
Constellation Energy stands out as a leading carbon-free energy producer in the U.S., with shares soaring 125% in 2024. The stock has received several recent analyst upgrades, including “Overweight” ratings from KeyBanc and Barclays, as well as initiation by JPMorgan with an “Overweight” stance. Analysts expect a year-over-year EPS growth of 20.35% this quarter, reflecting a highly positive outlook for CEG as it focuses on expanding nuclear generation contracts. Though high growth rates can sometimes bring increased volatility, Constellation’s solid balance sheet and diversified capital allocation strategy—including share repurchases, dividend growth, and expansion projects—are key strengths as the company looks to its earnings release on Monday, November 4. With earnings estimates up 215% in the last three months, Constellation is gaining traction as a key player in clean energy heading into earnings.
DuPont (NYSE: DD) – Optimism in Chemicals
Shares of DuPont have advanced over 8% in 2024, with analysts raising earnings forecasts more than 23% in the last six months. Several recent upgrades highlight strong confidence in DuPont’s growth outlook.
Citigroup recently upgraded DuPont to “Buy” with a price target of $95, while Deutsche Bank raised its target to $92, both expressing confidence in the company’s strategic direction and financial health. DuPont’s anticipated earnings per share for the third quarter is $0.92, a slight decrease from last year, but analysts are hopeful about future growth drivers, especially with potential clarity in its electronics and water management segments. While the company faces challenges with fluctuating demand, the focus on innovation and critical markets could lead to positive catalysts in 2025.
DuPont, a global leader in materials and specialty solutions, is set to report its third-quarter 2024 earnings on Tuesday, November 5, before the bell.
Emerson Electric (NYSE: EMR) – Automation Leader with Strong Upside Potential
Global technology firm Emerson Electric, known for its automation and engineering solutions, is set to announce its fourth-quarter earnings on Tuesday, November 5. Analysts project EPS of $1.47, a 13.95% increase year-over-year. Emerson has recently earned a rating upgrade from Oppenheimer, which raised the price target to $125, underscoring the company’s growth potential in the industrial and residential sectors. With a diversified product portfolio and increased demand in automation, Emerson’s current trading price of around $108.44 gives it room for upside, as analysts place its average 12-month price target at $125.81. Investors will be closely watching to see if Emerson’s results align with these optimistic projections.
Howmet Aerospace (NYSE: HWM) – Momentum in Aerospace and Defense
Howmet Aerospace, a key supplier to the aerospace and defense industries, will release its earnings on Wednesday, November 6, with analysts expecting EPS of $0.65—a strong 41.3% year-over-year increase. Last quarter, Howmet beat consensus expectations with revenue growth of 14.1%, and earnings are projected to grow by over 20% in the coming year. With 13 of 16 analysts rating it a “Buy,” Howmet’s momentum is being driven by demand for its high-performance components across commercial and defense markets. The average price target sits at $99.43, slightly below the current trading price, but continued strong performance could signal additional growth for this momentum-driven stock.
Air Products and Chemicals (NYSE: APD) – Industrial Strength
Air Products and Chemicals, a leading provider of industrial gases, has benefited from favorable pricing and a solid business mix, with a 17% increase in GAAP EPS in its previous quarter. Analysts have set a 12-month price target averaging $335.65, offering potential upside from the current price, although the stock has been less volatile than some of its peers. With fourth-quarter earnings expected on Thursday, November 7, investors will be closely watching APD’s report for continued strength in revenue and income. While economic factors like inflation could weigh on future results, APD’s diversified market presence across industries offers a strong foundation. Investors are likely to focus on whether APD’s pricing strategy and business diversification will continue to deliver results.
