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4 stocks to watch on earnings next week

Ahead of another loaded earnings week, "Fast Money" traders picked stocks that could outperform their competitors.

Wendy's/Shake Shack

Burger restaurants Wendy's and Shake Shack post results on Wednesday and Thursday, respectively. Trader David Seaburg believes Wendy's shares have more long-term upside because Shake Shack trades at a "premium multiple."

Still, he believes Shake Shack should beat "easy" comparable sales numbers.

Shake Shack workers prepare orders on August 18, 2014 in Madison Square Park in New York City. Shake Shack is allegedly considering going public and holding an initial price offering (IPO).
Getty Images
Shake Shack workers prepare orders on August 18, 2014 in Madison Square Park in New York City. Shake Shack is allegedly considering going public and holding an initial price offering (IPO).

CBS/Walt Disney

CBS and Walt Disney report on Tuesday and Thursday, respectively. Both media giants have been hit by pessimism about the cable television business at times this year.

Read MoreThree stocks that almost always rise on earnings

Disney should recover from a tough earnings report that sent its shares lower this summer, said trader Guy Adami.

Tesla Motors/Toyota Motor

Tesla posts results Tuesday, while Toyota reports Thursday. Tesla—which has fallen 7 percent this year—reached an "oversold" level earlier this month, said trader Steve Grasso.

"Tesla is really ratcheted up to spike higher at this point," he said.

Kate Spade/Michael Kors

Fashion companies Kate Spade and Michael Kors both report next week. Shares of Michael Kors have fallen nearly 50 percent this year.

"The sentiment on Michael Kors is so bad it's set up for a pop," said trader Brian Kelly.

Disclosures:

Brian Kelly

Brian Kelly is long BBRY, GLD, Bitcoin, Canadian Dollar, Hong Kong Dollar, TLT, US Dollar; he is short Yuan, British Pound, Euro, Yen, EEM, EWC, EWH, EWU, EWG, SPY

Steve Grasso

Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long MCD, AMZN kids own EFA, EFG, EWJ, IJR, SPY

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Guy Adami

Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.