Many companies are due to report earnings next week, including potential high-profile ones. Earnings season is in full swing, and 22% of the S&P 500’s members are expected to post their quarterly results next week. So far, most of the segments that have reported third-quarter earnings have exceeded earnings and revenue expectations, according to FactSet. Against this backdrop, CNBC Pro examined data from Bespoke Investment Group to find the names reported next week that tend to surprise investors and boast strong earnings performance. The companies below have exceeded the Street’s earnings per share expectations 70% of the time and are up 2% or more on earnings day. Here are the names that met these criteria: ServiceNow tends to make the most profit on listings at about 3.3%, the data shows. The business software giant also has the most reliable historical earnings performance, beating analysts’ earnings per share estimates 90% of the time. Wells Fargo analyst Michael Turrin is bearish on the stock. He recently reiterated his overweight rating on ServiceNow and raised his price target on the stock to $1,025 per share from $935. That new call suggests more than 11.5% potential for the stock, which is up 30.3% this year. “We continue to focus on the highest quality franchises, and look for those businesses with strong platform positions, balanced growth profiles, and management teams with proven track records – those NOW that meet all three criteria,” Turrin said on Oct. 6 note to customers. He added that the release of ServiceNow’s Xanadu product is a “huge step forward” in building the company’s vision for artificial intelligence. ServiceNow announced on Monday that it will invest £1.5 billion in the UK over the next five years, as it grows its UK business amid massive data center infrastructure and AI demand. Power circuits maker Monolithic Power has a strong price-to-earnings ratio of 88%. Shares of Monolithic Power are up more than 48.5% this year, outperforming the broader market. The stock tends to move about 2.6% on the earnings day, according to Bespoke. Monolithic is another term coined to exploit AI-related growth, according to Oppenheimer analyst Rick Schafer. He named Monolithic among his top semi picks on Tuesday and said he expects companies exposed to AI to deliver impressive results and vision following the group’s 2023 adjustment year. Impinj also makes the list, earnings beat expectations 88% of the time and the stock gains 3.2% in the average post-report period. The company, which makes radio frequency identification equipment, has been on a roll this year, gaining nearly 160.3% year to date. But analysts polled by FactSet think the shares could pull back, as their consensus price suggests a potential downside of 13.6%. However, they have a consensus buy rating on the stock. PI YTD mountain Impinj stock.
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