S&P 500 Earnings Momentum Builds as Key Companies Approach Quarterly Reports

Earnings Season Momentum Builds

More than a dozen S&P 500 companies are reportedly riding strong momentum as they prepare to report quarterly earnings next week, which analysts suggest could be a bullish indicator for their stock performance. According to reports, the third-quarter earnings season has maintained strength since beginning in early October, with S&P 500 companies positioned to report cumulative earnings growth exceeding 13% for the September quarter.

Selection Criteria Revealed

Analysis reportedly identified 15 stocks with notable earnings momentum scheduled to report next week using specific criteria. Sources indicate the screening required at least 20% growth in earnings-per-share estimates by Wall Street analysts over both three- and six-month periods, plus minimum 15% upside to reach consensus 12-month price targets among analysts.

Alphabet Shows Strong Estimates

Alphabet Inc., parent company of Google and YouTube, is expected to report significant earnings growth according to analyst projections. Reports state the company is anticipated to earn $2.28 per share in the third quarter, with the consensus 12-month price target of $252 suggesting approximately 18% upside potential.

The analysis reportedly shows the current earnings estimate is nearly 71% higher than projections from three months ago and 112% above estimates from six months prior. According to market data, Alphabet’s stock has increased 33% over the past three months and 63% over the past six months.

Visa Earnings Forecast Revised Upward

Visa, the global payments processor, is reportedly expected to post earnings of $2.97 per share for the third quarter. Analyst consensus indicates a 12-month price target of $393, which would translate to approximately 16% upside from current levels according to the data.

The report states that Visa’s current EPS forecast is nearly 41% higher than the estimate from three months ago and approximately 50% above the projection from six months prior. Despite these upward revisions, sources note the financial technology stock has generally lagged the market this year by most metrics, except for the past month.

Cigna Demonstrates Improved Trajectory

The health insurer is now estimated to earn $7.64 per share in the third quarter, according to the analysis. The Street’s consensus price target of $361 reportedly suggests a 32% potential advance for the stock over the coming year.

Cigna’s third-quarter EPS forecast is reportedly almost 27% higher than estimates from three months ago and 45% above projections from April. Although the company has reportedly trailed the S&P 500 over various periods this year, analysts note improved momentum with Cigna outperforming the broader index over the past month.

Broader Market Context

According to data from FactSet, the S&P 500 is positioned to notch its fourth consecutive quarter of earnings growth. The current earnings season has reportedly maintained strength since beginning in early October, with multiple sectors contributing to the overall performance.

Market analysts suggest that companies showing significant upward revisions in earnings estimates often demonstrate momentum that can translate to stock price appreciation, though they caution that past performance doesn’t guarantee future results and investors should consider multiple factors when evaluating investment opportunities.

References

• http://en.wikipedia.org/wiki/S&P_500_Index
• http://en.wikipedia.org/wiki/Wall_Street
• http://en.wikipedia.org/wiki/Stock
• http://en.wikipedia.org/wiki/Alphabet_Inc.
• http://en.wikipedia.org/wiki/FactSet

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