Earnings season is heating up, and among the 22% of S&P 500 members set to report next week, there are several companies that have a strong track record of beating expectations. Historically, these companies tend to surprise investors on earnings day with better-than-anticipated results, often followed by a solid jump in their stock prices.
We’ve taken a close look at some of these standout names—companies that have exceeded earnings per share (EPS) estimates at least 70% of the time and tend to gain 2% or more on average in post-earnings trading. These stocks may be poised for another round of strong performances next week, making them worth watching.
ServiceNow (NOW): Positioned for AI Growth
ServiceNow (NOW) has consistently beaten analysts’ EPS estimates, doing so 90% of the time. The stock has risen an average of around 3.3% following its earnings reports, and it’s already up more than 30% in 2024. The company is set to report earnings on Wednesday after the close and recently announced it would invest $1.5 billion in the U.K. over the next five years, which could further solidify its market position.
With the launch of its new Xanadu product release, ServiceNow is moving full speed ahead in building its artificial intelligence (AI) capabilities, an area that is likely to drive significant growth in the future. Wells Fargo’s Michael Turrin is bullish on the stock, increasing his price target to $1,025, indicating about 11.5% upside from current levels. ServiceNow’s strong platform positioning and proven track record make it a standout in the enterprise software space, particularly as AI demand continues to surge.
Monolithic Power Systems (MPWR): Riding the AI Wave
Monolithic Power Systems (MPWR) is another name that has a strong history of beating earnings expectations—88% of the time, to be exact. The stock has increased an average of 2.6% after earnings and has surged 48.5% in 2024, outperforming the broader market.
Monolithic Power is poised to benefit from the ongoing AI revolution, with Oppenheimer analyst Rick Schafer naming it one of his top semiconductor picks. Schafer expects companies exposed to AI to deliver upside results, and Monolithic Power is well-positioned to capitalize on this trend. The company’s power circuits are vital for AI-related infrastructure, making it a compelling choice for investors looking to ride the AI growth wave. MPWR is slated to report on Friday after market close.
Impinj (PI): A High-Flyer with Momentum
Also scheduled to report quarterly earnings on Wednesday after market close is Impinj (PI), which manufactures radio-frequency identification (RFID) devices, has been on fire this year, with its stock soaring 160.3% year-to-date. Like ServiceNow and Monolithic Power, Impinj has a strong track record of exceeding earnings expectations, doing so 88% of the time. The stocks average gain after earnings is 3.2%, making it a volatile, yet rewarding, pick.
Despite its stellar performance in 2024, analysts are slightly cautious about the stock’s near-term outlook, with a consensus price target implying a 13.6% downside. However, analysts remain bullish on the company’s long-term prospects, particularly given its strong position in the growing RFID market. For investors with a higher risk tolerance, Impinj could present an intriguing opportunity.
