As earnings season begins ramping up, there are some early reports to watch that have historically beaten expectations and rallied as a result. Earnings season kicks into higher gear next week, with major names including Goldman Sachs , United Airlines and Netflix on the docket. Investors will be watching to see how these companies' reports and guidance stack up against Wall Street forecasts, while also keeping an eye out for any commentary about how consumers are faring.
Bespoke Investment Group screened for stocks reporting next week that have beaten the Street's consensus earnings estimate at least 75% of the time. From there, the firm narrowed down the names that have also climbed at least 1% during a typical postearnings trading session. Here are the nine names that made the list: Ally Financial , which reports Wednesday, is one name that made the cut.
The stock has surpassed earnings expectations nearly 4 out of every 5 times, which has catalyzed a typical gain of 1.2%. Evercore ISI analyst John Pancari named it one of his picks heading into the second-quarter release, noting that the banking stock's results could bolster confidence in its improving returns.
"We believe investor confidence in ALLY's guidance and medium term fundamental outlook/returns should improve with 2Q24 results — thereby supporting upside to the stock's discount valuation," Pancari wrote to clients late last month. Ally has jumped more than 18% so far this year, modestly outperforming the broade.
