These 2 stocks could shock on earnings

More than three-quarters of S&P 500 companies have reported third-quarter earnings, but some traders say that there could still be some big surprises.

Gina Sanchez of Chantico Global said one of unexpected outperformer could be Toyota Motor, which is set to report earnings on Thursday.

With Volkswagen bogged down in its rigged emission test scandal, Toyota has reclaimed the mantle of world's largest automaker, Sanchez said.

"You're really starting to see Toyota picking up the slack there, and I do think there's potential for an upside surprise out of Toyota," she said Tuesday on CNBC's "Trading Nation."

Read More VW says fuel usage understated on some models; Porsche warns

On the other side, Erin Gibbs of S&P Investment Advisory has one name that she warns could be a disappointment for investors this earnings season.

Gibbs said Whole Foods Market is still struggling to come back from a mislabeling scandal in which the company overcharged for misstated weight on food products.

Whole Foods, which is set to report after the bell Wednesday, also has a history of missing on earnings, Gibbs said Tuesday.

Read More Whole Foods owns up overcharging of packaged goods

"They've missed the last three out of four for earnings estimates, and they've missed the last seven out of eight for revenue estimates," she said. "So based on their track record alone, I'm saying that they're going to be one of the ones that might miss."

This week has already seen some big moves, including Tesla, which soared 9 percent after its report, and Groupon and Fidelity which both plunged on earnings.

In a Wednesday report, Jonathan Golub of RBC Capital Markets noted that stock prices have been seeing more extreme moves on third-quarter earnings.

"Investors have rightly noted that companies missing expectations are being punished more harshly than normal this earnings season. However, the converse is also true. Companies that are positively surprising are also being rewarded more generously," Golub wrote.

Disclosure: Sanchez does not have any position in Toyota and Gibbs does not have any position in Whole Foods.

Want to be a part of the Trading Nation? If you'd like to call into our live Wednesday show, email your name, number, and a question to


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

Read more