These companies wowed investors with their earnings, and analysts say buy them now

Published Sun, May 2 20216:38 AM EDT

Companies are rolling out strong earnings this season, and Wall Street analysts say that could translate to big returns for investors. These stocks are likely heading higher, and shareholders should add them to their portfolio, analysts say. Of the S & P 500 companies that have reported so far, 86% topped Wall Street's estimates by an aggregated 23%, according to Credit Suisse. CNBC Pro combed through some of the top Wall Street research for stocks analysts say to buy during earnings season. They include: Valero, Goldman Sachs , Boston Beer, Newell Brand s and S & P Global. Goldman Sachs Goldman is coming off record earnings earlier this month in which the bank easily beat estimates on revenue and earnings per share. The upside is likely to continue too, Evercore ISI analyst Glenn Schorr said after a recent sit down with Goldman management. "A week after a sick quarter with $18.60 of EPS, 73% growth in I-Banking revenues with record pipelines and a strong economic outlook, it should be no shock that the meeting had a pretty bullish tone to it," he wrote. In fact, Schorr believes the classic phrase "sell in May" won't apply to Goldman. "While some investors may be concerned with the sustainability of those results, we came away from our meeting with confidence that GS is better positioned to maintain some of those share gains and achieve higher returns," he said. Schorr praised the company's M & A prospects saying it's an "ideal backdrop – expect more big and/or transformational deals ahead" as well as Goldman's ability to sustain its trading market share. "All that glitters is gold(man)," he said. Shares of the company finished April up about 6.5%. Boston Beer Meanwhile, at investment firm Morgan Stanley, analyst Filippo Falorni is getting bullish on shares of the beverage giant after its recent earnings report. Boston Beer reported strong first-quarter earnings on April 22, beating on sales and revenue estimates and aided in large part by the popularity of its hard seltzer brand, Truly. Falorni wrote in his follow-up note to clients that the stock has even more upside with an "attractive entry point in a compelling long-term story post Q1, with more compelling valuation vs. growth peers." The firm, which initiated coverage of the stock with an overweight rating on March 1, also said fears of a slowdown in the hard seltzer category were overblown. "We see upside to consensus and market expectation estimates longer-term for several years, driven by favorable secular growth drivers in the hard seltzer category and a best-in-class innovation track record at SAM," he wrote. While Truly captures a lot of consumer and investor attention, Falorni said shareholders shouldn't forget about the company's hard iced tea, Twisted Tea. "We see Twisted Tea as SAM's second growth engine after Truly, with solid growth potential in 2021 and beyond. Shares of the company are up 22% this year. S & P Global The financial services and business information company continued to deliver for shareholders, according to Oppenheimer analyst Owen Lau. S & P reported a strong first-quarter earlier this week, beating on revenue and earnings estimates in a report that Lau called "excellent." "This print again demonstrates the superior earnings power of its diversified model," he said. The firm believes S & P is on its way to becoming even more diversified as it works to complete its merger with information services company IHS Markit. "Overall, we believe that SPGI is well positioned for multiple expansion and earnings growth after the combination," he wrote. Lau also noted the company's progress and expansion in China market adding that S & P is proving itself much more than a ratings agency. "Even though SPGI is widely known as one of the largest rating agencies in the world, the non-rating agency businesses actually generate over 50% of revenue," Lau said. Crypto could also be in the company's future as well, he predicted. "SPGI has been doing research on crypto, and we believe it will launch a crypto index soon," he said. Shares of the company ended the month up 10.6%. Valero - Raymond James, Strong buy rating "Solid Outlook Confirms Recovery Trajectory; Top Pick on Bullish Refining Recovery. Valero remains the best-positioned refiner in our view to capitalize on what we see as a strong recovery for U.S./global oil demand this summer. The company's disciplined strategy in recent years has put the company at the forefront of top-tier refining operations, while the position in both renewable diesel and now carbon capture is well ahead of energy industry peers. We think both trends represent a 're-rate' story for the stock, while the broader macro pivots toward the refining industry's favor." Newell Brands - Jefferies, Buy rating "Stock Should Trade Higher on Strong 1Q and Upward Revision to Guidance: NWL delivered a strong 1Q with strength across regions and segments. We are encouraged by tangible signs progress on the turnaround, w/upwardly revised '21 guidance indicative of mgmt's efforts materializing. As we have written, the confluence of a favorable macro backdrop, tangible benefits from innovation, added mgmt. depth, a mended corporate culture, early stages of 'self-help,' and higher execution bar w/activist on board of directors are all coming together, and should drive the shares higher over near term." S & P Global - Oppenheimer, Outperform rating "This print again demonstrates the superior earnings power of its diversified model. SPGI continues to focus on the closing of the INFO acquisition, which it expects in 2H21. ... Overall, we believe that SPGI is well positioned for multiple expansion and earnings growth after the combination. ... Even though SPGI is widely known as one of the largest rating agencies in the world, the non-rating agency businesses actually generate over 50% of revenue. SPGI is much more than a rating agency; in our view, the company strives to become a benchmark business." Goldman Sachs - Evercore ISI, Outperform rating "A week after a sick quarter with $18.60 of EPS, 73% growth in I-Banking revenues with record pipelines & a strong economic outlook, it should be no shock that the meeting had a pretty bullish tone to it. While some investors may be concerned with the sustainability of those results, we came away from our meeting with confidence that GS is better positioned to maintain some of those share gains & achieve higher returns. Management maintained its medium term targets set at last year's investor day even though the company is seeing strong momentum & an ideal backdrop." Boston Beer - Morgan Stanley, Overweight rating "Post Q1 results, we review five key reasons why we are Overweight on SAM, with an attractive entry point in a compelling long-term story post Q1, with more compelling valuation vs. growth peers. ... However, we see upside to consensus and market expectation estimates longer-term for several years, driven by favorable secular growth drivers in the hard seltzer category and a best-in-class innovation track record at SAM. ... We see Twisted Tea as SAM's second growth engine after Truly, with solid growth potential in 2021 and beyond."

Jim Koch, co-founder and chairman of the Boston Beer Company

Source: The Boston Beer Company

Companies are rolling out strong earnings this season, and Wall Street analysts say that could translate to big returns for investors.

These stocks are likely heading higher, and shareholders should add them to their portfolio, analysts say.

Of the S&P 500 companies that have reported so far, 86% topped Wall Street's estimates by an aggregated 23%, according to Credit Suisse.

CNBC Pro combed through some of the top Wall Street research for stocks analysts say to buy during earnings season.