These stocks reporting earnings next week have a history of beating Wall Street expectations

Published Fri, Apr 26 20247:24 AM EDTUpdated Fri, Apr 26 20248:37 AM EDT

A large group of stocks are reporting earnings next week — and some could be in for notable moves if history repeats itself. More than 150 companies in the S & P 500 will release financial reports next week, according to FactSet. It comes during what is shaping up to be a strong earnings season, with nearly 4 out of 5 companies that have reported exceeding Wall Street expectations. In the runup to next week, Bespoke Investment Group screened for names that are scheduled to report that could gain on the back of strong results. To find them, Bespoke looked for companies that have historically beaten earnings per share expectations at least 75% of the time, and whose stocks have gained at least 2% in a typical postearnings session. Here are the stocks reporting next week that passed the screen: By both measures, HubSpot shows the most promise of the companies reporting next week. The enterprise technology provider, due to report May 1, has surpassed earnings expectations 100% of the time and has historically gone on to advance nearly 3.9%. HubSpot has also garnered buzz in recent weeks as a potential acquisition target of Google parent Alphabet. Earlier this month, Bank of America named HubSpot one of its favorites within the customer relationship management and infrastructure sectors. Shares have advanced almost 10% this year through Thursday, after more than doubling in 2023. The average analyst polled by LSEG, with a buy rating, anticipates the stock adding another 10.3% over the next year. Wingstop , which reports May 2, is a consumer discretionary name on the Bespoke screen. The restaurant chain has topped forecasts for earnings per share 77% of the time, with an average advance following earnings of 3.75%. The Texas-based company's stock has surged more than 44% in 2024, adding to last year's 86% gain. But Wall Street anticipates shares pulling back a little more than 4% in the next 12 months, according to LSEG. While the majority of analysts have hold ratings, Stephens' Jim Salera came out earlier this month with an overweight rating ahead of Wingstop's earnings. He said it offers a "scarcity" play as one of the few restaurant stocks offering same-store sales growth and exposure to the chicken trend, which can help justify the premium valuation. "Across our restaurant coverage, we believe that WING has perhaps the most unique and attractive growth story," he wrote to clients. "The brand has delivered robust increases in [average unit volume], driven by a revamped marketing playbook and favorable shifts in consumer consumption trends away from beef and towards poultry." Booking Holdings also made the Bespoke list, exceeding Street predictions for earnings per share 90% of the time and climbing about 2.1% following a typical report. The Booking.com parent is off about 1% this year after soaring 76% in 2023. But analysts expect a rebound ahead, with the average price target implying Booking shares can climb more than 13%, per LSEG. The majority of analysts have a buy rating on the stock, which also releases earnings May 2. One of those analysts is Trevor Young of Barclays, who said he still prefers the stock and has an overweight rating despite lower growth prospects this year. While he said Booking is "out of favor," Barclays sees "some of these dynamics reversing and remain most constructive" on the stock.