As we approach another busy earnings week, several companies are poised to report results that could lead to potential gains. Earnings season has already exceeded last year’s performance, with S&P 500 companies showing an 8.2% increase in earnings and a 5.3% rise in revenue compared to the same quarter last year. Impressively, earnings have beaten expectations by 7.5%, while revenue has outperformed by 1.7%.
With several key players on the docket, we’ve identified stocks that have consistently surprised analysts and achieved solid post-earnings gains. These companies have historically beaten earnings expectations 75% of the time and recorded at least a 1% increase on earnings days. Among these, Nvidia stands out with an 86% success rate in surpassing earnings forecasts, alongside notable post-earnings gains. Here’s a closer look at our top picks for the upcoming week.
Nvidia Corporation (NASDAQ: NVDA): A Strong Performer in AI Hardware
Nvidia is set to announce its third-quarter fiscal 2025 earnings on Wednesday, November 20, 2024. The company has a remarkable track record of beating earnings expectations, doing so 86% of the time. Analysts anticipate earnings per share (EPS) of $0.69, reflecting an impressive 81.6% increase from the previous year. Given Nvidia’s pivotal role in the AI hardware sector, investors are highly anticipating its earnings report.
JD.com, Inc. (NASDAQ: JD): E-commerce Growth Ahead
JD.com is scheduled to release its third-quarter earnings on Friday, November 15, 2024. The company has consistently impressed investors with its earnings performance, beating estimates 83% of the time and achieving post-earnings gains of about 1.1%. Analysts are optimistic about JD.com’s growth prospects, especially in light of recent consumption stimulus measures in China. Loop Capital recently upgraded its rating on JD.com to ‘Buy’ from ‘Hold,’ citing the company’s potential to benefit from these economic policies.
Williams-Sonoma, Inc. (NYSE: WSM): Reliable Retailer with Strong Results
Williams-Sonoma will announce its third-quarter earnings on Thursday, November 14, 2024. The retailer boasts an impressive earnings surprise record, having beaten Wall Street expectations 88% of the time, with an average post-earnings gain of 1.4%. However, some analysts have adopted a more cautious stance ahead of the earnings release. Wedbush Securities recently moved to a ‘Neutral’ rating, citing concerns over recent trends despite the company’s previous guidance adjustments.
In summary, as earnings week unfolds, these stocks present intriguing opportunities for investors looking to capitalize on companies that have historically exceeded expectations. From Nvidia’s dominance in AI to JD.com’s e-commerce growth and Williams-Sonoma’s reliable retail performance, these picks are worth keeping an eye on as we approach their earnings announcements.
