07-08-2025
These stocks reporting earnings next week have a history of topping analyst estimates
Companies reporting earnings next week with a track record of beating Wall Street's expectations include Applied Materials and Cardinal Health . Second-quarter earnings thus far have pointed to a still-resilient U.S. economy, despite recent elevated volatility on the back of President Donald Trump's sweeping universal tariffs. Of the 440 companies in the S & P 500 that have already reported, about 82% have exceeded Wall Street analysts' earnings expectations, according to data compiled by FactSet. More than 79% have also posted an upside revenue surprise. Although there are exceptions, as a general rule individual stocks tend to rally when their earnings top estimates. With this in mind, CNBC Pro screened data from Bespoke Investment Group to search for companies in the S & P 1500 (the S & P 500, MidCap 400 and Smallcap 600) reporting next week with a history of beating earnings expectations. Specifically, the tickers listed in the table below have beaten earnings expectations on average 65% of the time. One company on the list was semiconductor maker Applied Materials, up 13% this year. The company has beaten earnings estimates 81% of the time and boasts an average post-earnings gain of 0.5%. Last month, Citigroup added the name to its U.S. focus list. "We are adding Buy-rated Applied Materials to the US Focus list, which is reserved for stocks that screen attractive on valuation, consensus crowding and risk-reward. AMAT stock is up 17% YTD but has lagged U.S. semi cap peers KLAC/LRCX by 25% on tougher 1H sales comps," wrote analyst Atif Malik. "We expect comps to improve on better end market mix and stock to close the valuation discount vs peers in 2H25." Citi's $220 per share target price implies upside of 24% from the stock's Wednesday close. Cardinal Health also has a history of beating analysts' earnings expectations, in its case 78% of the time. The health care stock has surged 28% this year. In June, Wells Fargo Securities upgraded the health supplies distributor to an overweight rating from equal weight. Analyst Stephen Baxter lifted his price target to $179 per share from $136, implying 14% upside ahead. "We think the improvement in valuation and tighter spread vs peers is justified by a combination of a strong industry backdrop, improving business mix, and impressive execution," Baxter wrote. "Our ests are above consensus and there would be upward bias if recent outperformance in Pharma continues or if [Global Medical Products and Distribution] tariff headwinds are ultimately less than peak levels." Other names on the list of past outperformers include Cava Group , Brinker International and Tapestry .
