As the fourth quarter draws to a close, key players in the financial markets are closely monitoring an impressive slate of corporate earnings scheduled for release next week. With a total of 90 companies from the S&P 500 and eight from the Dow Jones Industrial Average slated to report, this week stands as a critical juncture for investors seeking insights into the health of the U.S. economy and consumer behavior. The upcoming reports are poised to provide valuable information that could sway market sentiment and investment strategies.
In anticipation of these earnings reports, analysts at CNBC Pro have identified companies that exhibit forward earnings momentum—key indicators that suggest strong future performance. These companies have not only received favorable ratings from analysts but also demonstrate an optimistic outlook based on recent earnings revisions and price targets. To qualify for this positive outlook, companies had to meet specific criteria: they must have at least 55% of analysts rating them with a “buy,” possess a price target suggesting a minimum 10% upside, and show earnings estimates revised upward by at least 15% in the last three to six months.
Among these momentum-driven stocks, Amazon stands out as a formidable player. With approximately 80% of analysts endorsing the e-commerce giant as a “buy,” the company has witnessed a remarkable 25% increase in stock price over the past three months. This performance is accompanied by a projected 31% upside based on average analyst price targets. JPMorgan analyst Doug Anmuth has placed significant emphasis on Amazon’s growth trajectory, particularly highlighting the acceleration in its Amazon Web Services (AWS) and retail operations. Anmuth’s confidence stems from the potential of AWS—widely regarded for its innovative approach to artificial intelligence and its solid financial performance—to bolster Amazon’s overall profitability in the face of escalating capital expenditures.
Visa also holds a promising position as it arrives at its earnings report next Tuesday. The digital payments leader has surged 29% over the past six months, maintaining a “buy” rating from about 61% of analysts. The market is buzzing with anticipation, particularly because the average price target suggests an attractive 16% upside. Morgan Stanley analyst James Faucette heralds Visa as his top pick in the payments sector, emphasizing the favorable dynamics stemming from travel resurgence, enhanced value-added services, and potential easing of regulatory scrutiny. Visa’s robust valuation and the current market sentiment further bolster its attractiveness leading into 2025.
Synchrony Financial is another name to watch closely as earnings are set to be reported on the same day as Visa. With an impressive 41% increase in stock value over the past six months and a staggering 85% surge in the past year, Synchrony has attracted attention from investors and analysts alike. Approximately 61% of the analysts covering Synchrony have labeled it a “buy,” and the consensus indicates a potential 24% upside from current prices. Barclays analyst Terry Ma recently upgraded Synchrony’s status, hailing its favorable valuation amidst favorable economic conditions. The company’s strategic initiatives to mitigate losses have started to bear fruit, with expectations for revenue growth to accelerate through 2025.
As investors gear up for a week filled with pivotal earnings announcements, the focus will undoubtedly be on these momentum-driven stocks that appear well-positioned to capitalize on evolving consumer trends. Companies like Amazon, Visa, and Synchrony Financial are not just on the radar for their solid past performances; they also present prospects of continued growth that could influence market dynamics into 2025 and beyond. By evaluating the underlying factors that contribute to earnings momentum, investors can better navigate the upcoming fiscal landscape and position themselves strategically for potential gains. Whether through robust performance metrics or positive analyst forecasts, the next week in earnings will provide critical insights for making informed investment decisions.