Wolf Research found that Wall Street is in the midst of earnings season, and some companies that have already reported earnings may perform better in the future. More than 40% of S&P 500 companies have reported their latest quarterly results. FactSet data shows that nearly 76% of these companies experienced an unexpected rise in profits. On the revenue side, 60% of companies beat expectations. “The price action trend re-emerged last quarter as companies posted strong relative results on both top and bottom lines,” Wolf said. “The third-quarter earnings season coincides with the U.S. election, and we are watching closely to see if this trend will continue. “Our sense is that in addition to positive price action around reports, companies that outperform on top and bottom lines should have a greater chance of outperforming their peers in the coming months,” Wolf said. . With that in mind, the company shared a basket of S&P 500 stocks that beat earnings and revenue estimates and posted strong gains on the back of those reports. Here’s a look at those on Wolfe’s list Some names: One stock on the list is Goldman Sachs, which has surged 36% this year. Most analysts covering the stock are bullish, 16 of 24 analysts covering the stock, according to LSEG. With a buy or strong buy rating, Wells Fargo reiterated its overweight rating on Goldman Sachs stock following its latest earnings report on October 15. Wells Fargo analyst Mike Mayo wrote: “Goldman Sachs is on the move. Transform into a more stable company with a greater contribution from durable revenue streams. “Goldman Sachs also hopes to expand its addressable market in areas of strength such as investment banking and lending to corporate clients. Molina Healthcare also made the list. Shares jumped nearly 18% on Thursday after the healthcare company reported better-than-expected earnings and revenue. Molina Healthcare had adjusted earnings of $6.01 per share, while the LSEG consensus EPS estimate was Revenues of $10.34 billion also beat estimates of $9.91 billion, with most analysts covering the company giving it a Hold rating. That said, the average price target indicated about $16. % upside. Shares of Molina Healthcare are down 11% this year. Software company ServiceNow also rose 5% on Thursday after reporting third-quarter earnings of $3.72 per share, according to LSEG. It beat Wall Street expectations of $3.46 per share, while its $2.8 billion in revenue also beat forecasts of $2.74 billion. Analyst Brad Sills wrote: “Reliable execution of the broad suite of ServiceNow applications and end-customer demand drove another boost. A strong quarter of growth and funding. “So far this year, ServiceNow stock has risen more than 35%.
Wolfe Research says these stocks beat earnings estimates and should outperform the market | Real Time Headlines
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