These companies reporting next week have a history of beating earnings expectations

Published Sat, Jan 20 20248:55 AM EST

Fourth-quarter earnings season is in full swing and a few stocks could get a boost next week if history is any indication. A diverse group of firms will report results next week, with nearly one-third of companies within the Dow Jones Industrial Average and 63 S & P 500 companies on the docket. Investors will be particularly keen to see how chipmakers fare, but reports will also come from telecommunications and defense companies. Tesla , Netflix , IBM , Verizon and Intel are just a few of the big-name stocks slated to release financials. Earnings from credit card giant Visa and denim clothing maker Levi Strauss will also be a good measure for investors to gauge the health of the U.S. consumer. As every investor knows, earnings results are integral to a stock's performance. An earnings beat and optimistic outlook could send shares flying on market enthusiasm, while a miss could drag stocks down. With that in mind, among the companies reporting their results next week, CNBC Pro screened for the ones with a history of beating the market's expectations. The following stocks have all topped earnings forecasts at least 75% of the time and have averaged a subsequent post-earnings day rise of 1% or greater, according to data from Bespoke Investment Group. Homebuilding firm D.R. Horton has topped estimates for earnings and revenue 76% and 70% of the time, respectively. The company is slated to announce its quarterly results before Tuesday's trading session. Traditionally, the company's stock has risen 1.68% on average within a day of its earnings announcement. Shares of D.R. Horton are already up 2% in 2024 after advancing more than 70% in 2023. Another name on the list is ServiceNow , which is scheduled to release quarterly earnings on Wednesday after the bell. The software company has a record of beating earnings expectations 89% of the time and revenue expectations 93% of the time. Shares of ServiceNow have historically risen 3.33% after posting its earnings, and have already gained more than 6% this year. The stock was up 82% in 2023. Earlier this month, Bank of America listed the stock as a top pick for 2024. "ServiceNow is a key beneficiary from the three secular themes outlined in our year ahead: AI, Consolidation & Cloud," the bank wrote. "Best-in-class growth likely to move higher with AI and ongoing consolidation of the large IT & custom apps markets." Valero Energy also has a track record of earnings outperformance, respectively topping earnings and revenue forecasts 87% and 81% of the time. The energy company is due to release its results before Thursday's trading session. Shares of Valero gained only 2.5% in 2023, and have slipped 1.4% so far this year, but could be boosted by an earnings beat. Valero stock has traditionally gained 1.1% on average following its earnings. Industrial firm Teledyne Technologies is the most consistent earnings outperformer on the list, with a record of beating earnings 100% of the time. On the other hand, it has topped revenue estimates only 60% of the time. To date, Teledyne has slid 2.4% this year, but it tallied an 11.6% gain last year. The company's shares have risen an average of 1.8% following an earnings announcement. Teledyne is slated to report its earnings next Wednesday before the market open. — CNBC's Fred Imbert contributed to this report.