These companies have earnings momentum heading into their reports next week

Published Fri, Feb 2 20246:42 AM EST

Certain stocks reporting earnings next week have momentum, with analysts getting more bullish on their profit potential and share prices into the results. Roughly 20% of S & P 500 companies are set to report next week, including pharmaceutical titans such as Eli Lilly and Vertex Pharmaceuticals , and stocks ranging from McDonald's to Walt Disney to Uber Technologies . So far, more than 200 companies in the S & P 500 have reported fourth quarter earnings. But even though about 74% of companies in the S & P 500 have topped analyst expectations, earnings beats are the lowest in four quarters, London-based Societe Generale strategist Manish Kabra said in a Thursday note. Against this backdrop, CNBC Pro looked for S & P 500 names reporting next week that met the following criteria: At least 8 upward earnings-per-share estimate revisions in past 3 months Average earnings-per-share estimate is up 5% or more in past 3 months Average earnings-per-share estimate is up 1% or more in past 6 months Average analyst price target is up 10% or more in past three months Here are the companies that made the cut: Average price targets for Allstate have climbed nearly 25% in the past three months, the highest of any stock that surfaced in the screen. The insurer is set to report earnings on Feb. 7. Shares have soared 11.6% year-to-date and about 22% over the past year as the insurance market grew more attractive , benefiting from both strong premium pricing and easier inflationary pressures. Analysts' consensus price target of $161 suggests roughly 3% potential upside from Allstate's recent close. Morgan Stanley called Allstate an "underappreciated story in a favorable market environment" in a Jan. 4 note, upgrading the carrier to overweight from equal weight. According to analyst Bob Jian Huang, Allstate could see better earnings growth this year due to faster growth in the personal auto business coupled with smaller underwriting losses. Vertex Pharmaceuticals has gained favor among analysts over the past few months, as the stock has risen 6.6% since the start of the year and 36% over the past 12 months. Earnings are set for release on Feb. 5. The company's earnings per share estimates are up about 14% in the past three months, after analysts made 21 upward revisions. According to FactSet, analysts' consensus price target of $443 suggests an upside of 2.1% from Thursday's close. Goldman Sachs analyst Salveen Richter is bullish on Vertex's acute pain and chronic pain treatments, as well as data from its next potentially revenue-boosting cystic fibrosis therapy expected in the first quarter, she wrote in a Tuesday note. Richter maintained her buy rating on the company and raised her price target by $117 to $559, which implies nearly 29% potential upside. JPMorgan also raised its price target on the stock on Thursday. Ride-hailing company Uber Technologies , which reports earnings on Feb. 7, has seen its earnings estimates bumped higher 27 times by analysts in the past three months. Over the same span, analysts hiked their average price target by roughly 17%. Uber ended 2023 on a strong note and is seeing better profit margins, according to Bank of America analyst Justin Post, who recently raised his price target for Uber to $73 per share. That implies the stock, which entered the S & P 500 in December, could gain another 9% from Thursday's close. Shares soared more than 120% last year as Uber generated higher global operating cash flow higher and implemented cost-cutting efforts. "Looking forward, we see Uber as offering one of the best 3-5 year growth profiles in the Internet sector, with potential for mid-to-high teens bookings growth and 30% EBITDA growth," Post wrote in a Monday note. Other companies that have earnings momentum heading into next week include consulting company Gartner and risk management provider Assurant .