These stocks about to report earnings typically beat expectations and gain

Published Fri, Feb 9 20241:00 PM EST

After watching stocks like Meta and Amazon soar after topping Wall Street estimates, investors may want to scan the earnings calendar for stocks that have a solid track record of reporting strong results and seeing their shares rally. Although the fourth-quarter earnings season is more than halfway done, there are still plenty of names on the docket. So far technology stocks have led the market higher, with the benchmark S & P 500 reaching the 5,000 level on Thursday. Stocks have benefited from a still-strong economy, declining inflation and hopes for a central bank interest rate cut in 2024. CNBC Pro used Bespoke Investment Group data to screen for stocks ahead of their quarterly results that meet the following criteria: Average earnings per share beat rate of 75% or higher Shares typically gain an average of 1% or more on earnings day Cloud-based communication company RingCentral made the list. The company has historically outperformed Wall Street EPS estimates 98% of the time, and its stock has typically gained nearly 3% following quarterly results. RingCentral stock has slipped about 2% from the start of the year. RNG YTD mountain RingCentral stock. The company is set to report fourth-quarter results on Feb. 20. Analysts polled by FactSet forecast earnings of 82 cents per share on $570.5 million in revenue. About half of analysts polled by FactSet rate RingCentral stock as a buy, and their average price targets imply more than 22% upside moving forward. The company brought back former CEO and co-founder Vlad Shmunis in December. At that time, the company reiterated its full-year and fourth-quarter forecast, which estimated 2023 revenue would be in the range of $2.2 billion to $2.21 billion, or up about 11% year-over-year. Digital advertising company The Trade Desk also made the screener's cut. Shares are down less than 1% since the start of the year. TTD YTD mountain The Trade Desk stock. The company has a history of surpassing EPS estimates 97% of the time, while its stock has climbed more than 8% following quarterly results. The Trade Desk will report quarterly results on Thursday, while analysts polled by FactSet estimate fourth-quarter earnings per share of 41 cents per share on $582 million in revenue. Morgan Stanley analyst Matthew Cost reiterated an overweight rating on Trade Desk stock, and added that the company will likely remain a key player in the connected television advertising space even if the overall sector remains fragmented as Amazon launches an ad-supported tier of Prime. The vast majority, some 74%, of analysts surveyed by FactSet rate the stock a buy, with an average price target of $78.94 suggesting about 9% upside ahead. Other companies that made the cut include energy firm Generac and metals producer Reliance Steel & Aluminum .