Major tech companies report earnings next week. These stocks usually beat expectations
As earnings season approaches its peak, multiple stocks consistently outperform analysts’ earnings estimates. More than 150 S & P 500 companies are due to report earnings next week, including four of the ‘Magnificent Seven’: Apple , Amazon , Microsoft , and Meta Platforms . According to FactSet, of the roughly 80 S & P 500 companies that have so far reported earnings, 88% have beaten analyst expectations. CNBC Pro screened data from Bespoke Investment Group looking for companies with a track record of beating analysts’ earnings estimates at least 75% of the time, and which then rise 2% or more in reaction. Grand Canyon Education is one, with an earnings beat rate of 90% and an average gain of 2.22% the day after reporting earnings. Truist Securities initiated research coverage on the education services provider in a June 9 note to clients, rating it a buy with a $200 price target — implying 46% upside from Wednesday’s close. Analyst Jasper Bibb believes Grand Canyon offers strong fundamentals and a competitive advantage in branding and costs. He also believes the market is “overly punishing LOPE for concerns around AI disruption of online education demand, uneven quarterly results from peers and the upcoming midterm [elections].” “We think these concerns are over-discounted in the lagging stock price and see a path for LOPE to deliver on ’26 expectations and re-rate toward historical valuation levels.” Bibb wrote. Grand Canyon shares have fallen 20% over the past three months, underperforming the 5% gain in the S & P 500, according to FactSet data. LOPE 3M line Grand Canyon over the past three months Generac Holdings typically beats Street earnings estimates 84% of the time, and rallies an average of 2.67% after reporting. In a Wednesday note, Cantor Fitzgerald initiated coverage of the power generator maker with an overweight rating and price target of $325 — implying a 52% gain from Wednesday’s close. Analyst Manish Somaiya wrote that Generac is transforming from “a weather-sensitive residential generator company into a broader power-resiliency platform.” He also noted that the current build cycle of data centers will leave the manufacturer with a better earnings mix for the future. According to LSEG, 14 of 21 analysts rate Wisconsin-based Generac a buy or strong buy. Wingstop , expected to post earnings next Wednesday, typically beats Wall Street consensus earnings estimates 80% of the time, and gains an average of 3.58% the next trading session. Bank of America lowered its price target to $234 from $264 (still implying 69% upside from Wednesday’s close) in a late June report, but said that Wingstop may grow alongside consumer wages. “Wingstop’s customer base overindexes to lower-income households, the cohort that has been under the greatest economic pressure,” analyst Sara Senatore wrote. “But a recent Bank of America Institute report suggests accelerating wage growth for lower- and middle-income households. WING should benefit disproportionately” She also noted that a recent change in marketing has improved Wingstop’s outlook and may herald future improvements. The Street consensus around Wingstop is a buy. According to LSEG, 24 of 29 analysts rate the Dallas-based company a buy.
