Here are companies reporting next week and consistently beating expectations

Investors facing a difficult earnings season in the coming week can hold onto several stocks that have historically beaten earnings expectations, according to Bespoke Investment Group. Investors and market observers are expecting a difficult reporting season for shares in the fourth quarter. S&P 500 earnings are expected to fall 2.7% in the fourth quarter, marking seven consecutive quarters of growth, according to UBS strategist Keith Parker. Of the 56 S&P 500 companies that have reported so far, according to FactSet data, about 69% have surprised to the upside, while 31% have missed expectations. These results have already weighed on the key averages. This week, after a strong start to the year, the Dow Jones Industrial Average gave back gains from early January after a strong start to 2023. The average is now little changed over the year due to some disappointing earnings. Conversely, the S&P 500 and Nasdaq Composite remain positive for the year, with the latter boosted by positive signals in Netflix’s latest earnings report on Friday. With the fourth quarter earnings season just beginning, Bespoke Investment has found names to report next week that have a solid track record of beating expectations in the past. Here are six such stocks. Homebuilder DR Horton typically surprises to the upside during earnings season. Out of 85 previous reports, the Texas-based company beat earnings per share forecasts 75% of the time and exceeded revenue expectations 69% of the time, according to Bespoke. Additionally, it raised guidance 13% of the time. And the stock typically climbs 1.66% on the day it reports earnings. In a note this month, UBS said DR Horton remains the top pick for homebuilders in 2023 “given the company’s size/scale, focus on first time/entry level and consistent execution.” Cloud computing company ServiceNow also made the screen. In the last 42 reports, ServiceNow has exceeded profit and revenue expectations 88% and 93% of the time, respectively. In addition, it raised its guidance 24% of the time. Another stock that has historically outperformed expectations is Mondelez. The Oreo and Chips Ahoy! Cookie Maker had upside earnings per share surprises in 83% of its 41 previous reports and upside sell surprises in 56% of the cases. The company raised guidance 2% of the time. Jefferies considers Mondelez one of his top large-cap food stocks because it “has upside revision potential for the topline due to EM/FX strength,” according to a note this month. Meanwhile, in 69 previous reports, computer peripherals maker Logitech beat earnings expectations 75% of the time and exceeded sales expectations 67% of the time. However, Logitech only raised guidance 1% of the time. Other stocks included on the list are F5 and Visa.
https://www.cnbc.com/2023/01/20/here-are-companies-reporting-next-week-that-regularly-top-expectations.html Here are companies reporting next week and consistently beating expectations