As earnings season begins ramping up, there are some early reports to watch that have historically beaten expectations and rallied as a result. Earnings season kicks into higher gear next week, with major names including Goldman Sachs , United Airlines and Netflix on the docket. Investors will be watching to see how these companies’ reports and guidance stack up against Wall Street forecasts, while also keeping an eye out for any commentary about how consumers are faring. Bespoke Investment Group screened for stocks reporting next week that have beaten the Street’s consensus earnings estimate at least 75% of the time. From there, the firm narrowed down the names that have also climbed at least 1% during a typical post-earnings trading session. Here’s the nine names that made the list: Ally Financial , which reports Wednesday, is one name that made the cut. The stock has surpassed earnings expectations nearly four out of every five times, which has catalyzed a typical gain of 1.2%. Evercore ISI analyst John Pancari named it one of his picks heading into the second-quarter release, noting that the banking stock’s results could bolster confidence in its improving returns. “We believe investor confidence in ALLY’s guidance and medium term fundamental outlook/returns should improve with 2Q24 results – thereby supporting upside to the stock’s discount valuation,” Pancari wrote to clients late last month. Ally has jumped more than 18% so far this year, modestly outperforming the broader market. The average analyst polled by LSEG has a buy rating and expects shares to add more than 4% in further upside over the next year. ALLY YTD mountain Ally, year to date Homebuilder D.R. Horton also made the list, with a 76% beat rate and 1.5% average post-earnings return. The company is slated to report Thursday. Entering this earnings season, JPMorgan Michael Rehaut named the stock one of his longs. “We expect DHI to outperform its peers this earnings season, as we believe the buyside has focused more negatively recently on the company compared to its peers,” Rehaut told clients in a Wednesday note. D.R. Horton has dropped slightly more than 8% this year, bucking the broader market’s uptrend. But the average analyst surveyed by LSEG has a buy rating with a price target implying shares can rebound by more than 18%. Intuitive Surgical , which also reports Thursday, passed the screen with an 88% beat rate and average rally of 2.4%. Goldman Sachs analyst David Roman named the stock one of his top medical technology picks for the earnings season in a Wednesday note to clients. He cited room for positive earnings revision as a reason for that optimism. Intuitive’s earnings call comes amid a strong period for the stock, with shares climbing more than 31% in 2024. But the average analyst, while having a buy rating, sees a correction of more than 2% coming over the next year.
