Apple among the names reporting next week that typically beat on earnings, boosting shares

Published Fri, Jul 22 20221:33 PM EDTUpdated Fri, Jul 22 20222:34 PM EDT

The busiest week of the corporate earnings season is around the corner, and there are some companies that tend to outperform expectations and see their stocks pop. More than 150 S & P 500 components are slated to report next week, including Apple, Alphabet and Chipotle Mexican Grill. So far this earnings season, about 21% of S & P 500 companies have reported earnings. Of those that have release results, nearly 70% have beaten analyst expectations, according to FactSet. This earnings season, investors are watching closely to see how companies have fared amid high inflation that's potentially dragged consumers and stoked the potential of an upcoming recession as the Federal Reserve raises rates to reel in prices. In addition, investors are looking to see if companies have adjusted expectations to account for the changing landscape, which includes dollar strength not seen in 20 years and the continuing war in Ukraine. Considering this, CNBC Pro analyzed data from Bespoke Investment Group to find which companies have consistently outperformed expectations and traded higher after releasing financial results. Check out the names that made the cut: Chipotle Mexican Grill Chipotle Mexican Grill will report its quarterly results on Tuesday after market close. The fast-dining chain has beaten earnings per share and sales estimates 76% and 70% of the time, respectively. The stock typically performs well after earnings, averaging a gain 1.65%. Goldman Sachs sees opportunity to pick up Chipotle now given potential future spending. "We believe that consumer spending could look better in FY23 v. FY22 and see several opportunities to buy high-quality discretionary names that lie on the defensive end of the spectrum," wrote analyst Jason English. "Our top picks in the vein are TGT, CMG, and YUM." Alphabet Alphabet is slated to report earnings Tuesday after the bell. Alphabet beats earnings per share and sales estimates 70% and 75% of the time, according to Bespoke. However, the company's report comes after news that the company would slow hiring going forward, a potential warning for the upcoming results, according to Stifel. The firm also said that: "We expect volatility in results and estimates in the near-term given the degree of current macro uncertainty and recession risk, and our PT falls to $145 as we adjust estimates lower reflecting slower growth and recent FX headwinds." Shares of the tech giant have sharply this year, dropping 25% in that time. Steven Madden Steven Madden will announce its quarterly earnings Wednesday before markets open. The shoe maker beaten earnings per share and sales estimates 75% and 76% of the time, respectively. Steven Madden has averaged a gain of 1.7% after the company reports. Shares of Steve Madden have struggled in 2022, losing roughly a quarter of their value. MasterCard MasterCard is scheduled to report earnings Thursday before the opening bell. The credit card company has beaten earnings per share estimates 94% of the time, and sales expectations 81% of times. Shares of the credit card company generally rise more than 2% following earnings, according to Bespoke. Analysts at Morgan Stanley reiterated their overweight rating on the stock earlier this month, citing ongoing strength in travel demand along with strong fundamental. "We think V/MA are well positioned even in a recessionary environment from two angles. 1) The inflation pressure on higher income consumers, who make up 60% of all consumer spending, may be overestimated," they wrote. "2) Even if we were to enter a recession with persistent inflation, V/MA should benefit given ~2/3 of revenue is tied to volumes, with ~1/3 tied to number of transactions, which should both benefit from higher prices." Apple Apple is scheduled to report quarterly results on Thursday after market's close. The technology company has beaten earnings per share estimates 89% of the time in previous reports and has topped on sales 80% of the time. Shares average a rise of more than 1% following earnings. Even if Apple doesn't outperform this quarter, some analysts see it as a solid stock to own. "Apple remains a near-term bull/bear battleground and we aren't pounding the table into earnings, but remain OW as a flight-to-quality/best of breed name in a downturn," Morgan Stanley's Katy Huberty wrote in a July 19 note. World Wrestling Entertainment World Wrestling Entertainment is slated to report quarterly earnings on Thursday after the market closes, and could see shares rise more than 1% following a beat. In May, Benchmark added the company to its top ideas list with a buy rating and a $71 price target, a roughly 8% upside from where shares currently trade. "We believe WWE offers a compelling reopening trade and continues to deliver significant growth," wrote analyst Mike Hickey. "We are encouraged over live programming on streaming and believe WWE's live sports and entertainment content will attract multiple new bidders in FY23 for new FY24 deals." Bespoke data shows the company beat earnings estimates 70% of the time, while topping revenue forecasts 63% of the time.