A slew of companies, spanning from Google-parent Alphabet to medical supplier McKesson , are bucking this stagnant market and are on the verge of breaking out to new 52-week highs. Upcoming earnings could be the catalyst that pushes them over the top. About 23% of the companies in the S & P 500 have reported their latest quarterly results, and of these 77% posted a beat on earnings, according to FactSet data as of Tuesday afternoon. The action is picking up this week, with reports from Microsoft , Amazon and Intel on deck. Despite these stellar results, the overall market has been stuck this month, down 1%. CNBC Pro looked for stocks that are within 5% of a 52-week high and are up more than 1% so far this month. We then looked for the names where Wall Street believes the breakout is coming soon. That is, the consensus price target on these stocks call for a gain of at least 5%. Here are the stocks that made the cut, and what analysts have to say about them. Shares of Alphabet could pop following results, providing relief to investors amid a choppy month for markets, analysts believe. Shares are currently 3.3% off from the 52-week high. The Big Tech company will report earnings after the closing bell on Tuesday, with Wall Street watching for updates around the company’s digital ad demand and cloud revenue growth . Investors also want to hear the latest news on Alphabet’s artificial intelligence products . The stock has jumped 57% this year, and analysts have a consensus price target on the stock that implies about 11% gain. Diamondback Energy is just 3.5% away from its 52-week high. The stock has soared by 20% this year, and it’s added about 6% this month. Analysts covering the stock see additional upside of about 9% from here, based on the consensus price target. Citi downgraded Diamondback Energy to neutral from buy on Monday, however, saying the company lacks many opportunities to reduce its operating costs or improve its efficiency faster than peers. The firm’s $170 price target on the stock suggests only 2.8% upside from Monday’s close. “The scarcity value of being the lone remaining large-cap Permian producer should allow FANG to hold its current multiple, but further upside appears limited,” Citi analyst Scott Gruber wrote in the recent note. Diamondback is set to report third-quarter earnings on Nov. 6 after market close. Another name that made the list is McKesson , which is set to report earnings after the closing bell on Nov. 1. The company is just 3.4% away from its 52-week high. Shares are up 3.7% in October, and they are up 20% in 2023. As a pharmaceutical and health-care provider, McKesson could be a beneficiary from the distribution of weight loss drugs, according to a Citi Research note from Sept. 29. Wall Street sees further gains for the name, as analysts’ consensus price target suggests upside of 8% from here. Other names on the verge of a breakout include drug wholesale company Cencora , Vertex Pharmaceuticals and natural gas company Targa Resources . – CNBC’s Michael Bloom contributed reporting.
