About 25% of companies in the S&P 500 report their earnings for the quarter ending December.
Collectively, the group has seen a 31% increase in annualized earnings.
Some of the names scheduled to release their financial results in the next week have a track record of beating Street expectations and seeing positive stock price movement.
Chipotle Monolithic Power are two of the most attractive brands to buy.
Let’s look at each of these in more detail to see what they have in store for investors.
Chipotle Mexican Grill Inc. (NYSE: CMG).
Chipotle will report its fourth-quarter earnings to the public on February 4 .
It is expected to earn 24 cents per share in the recently completed quarter, compared to 21 cents a year earlier.
The stock price of the chain of fast casual restaurants rose by an average of 1.6% the day following the release.
Analysts are bullish about Chipotle stock heading into its Q4 report. RBC expects it to reach $75 by 2025.
The price target indicates that there is potential for a further 30% increase from current levels.
The investment firm is confident in CMG’s ability to perform well, regardless of the macroeconomic background.
Investors were told in a recent investor note that the potential for operational efficiencies and growth of international units could help drive up the company’s stock price this year.
Chipotle’s stock is still not cheap to buy, despite a 10% drop since its recent peak.
At the time of writing, it also does not pay a dividend.
Chipotle is a particularly attractive stock to own as it is currently down 10% from its recent high.
At the time of writing, it does not pay a dividend.
Monolithic Power Systems Inc. (NASDAQ: MPWR).
Another name that has a history of beating earnings estimates and tends to push up a day after is Kirkland-headquartered Monolithic Power.
The company that designs and develops power solutions for electronic systems, usually gains more than 2.0% the following day. It exceeds Street estimates over 85% of the times.
MPWR has lost around 30% in the last three months, which makes the risk-reward ratio all the more favorable for investing in it.
Monolithic Power will report its fiscal fourth quarter results on February 6 .
It is expected to earn $3.13 a share, which is significantly more than the $2.04 it earned during the same quarter of last year.
Wall Street’s consensus rating for Monolithic Power is “overweight” before its earnings announcement.
The Street-high target price of $1,100 suggests a potential 70% increase from current levels.
MPWR, unlike Chipotle pays a current dividend yield of 0.78 % as well. This makes it even more appealing for investors looking for an additional source passive income.
This post These 2 stocks reporting next week earnings often beat estimates first appeared on ICD
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