The companies must outperform earnings expectations at least 90% of the time and have an average stock gain of at least 1%.
This week’s list includes a Big Tech name, a rapidly growing e-commerce company, and a major semiconductor player.
The most prominent name on the list is social media behemoth Facebook, which will release its latest earnings report on July 28. According to Bespoke, the company beats estimates more than 91 percent of the time and sees a typical post-earnings bump of about 2.7 percent.
Analysts on Wall Street are optimistic about Facebook ahead of its earnings report. According to FactSet, more than 80% of analysts rate the stock as a buy, with an average price target upside of nearly 12%.
Shopify, a Canadian e-commerce company, is another heavyweight on this list. During the pandemic, the company’s growth accelerated, and the stock has risen nearly 300 percent since the end of 2019. Shopify has also raised its guidance more than half of the time, which can help amplify the impact of a strong quarterly report on the stock.
Stock in Semiconductors Lam Research is another large-cap company on the list. This year, Lam has outperformed its industry and the broader market, rising approximately 35%. The stock typically rises 1.3 percent in the session following earnings announcements.
Chip stocks outperformed the market in June, with the VanEck Semiconductors index rising more than 5%, but have since retreated. Lam Research has lost about 2% since the end of June.
Six Flags, which reports on July 28, is one of the biggest names on this week’s list.
This report could be pivotal for Six Flags, which took a significant hit in 2020 as a result of the pandemic, as it will provide insight into how demand for amusement parks is rebounding as vaccines become more widely available in the United States. The company’s stock is trading lower than it was at the start of 2020.
According to FactSet, Wall Street analysts are split on the stock, with 58 percent rating it as a buy and the rest neutral. According to Bespoke, shares fall 2% on average after Six Flags reports earnings.
Clear Channel Outdoor, a billboard company, is also on the list. Historically, the company has missed earnings estimates less than 35% of the time, with the stock falling 2.2 percent on average.
The stock is not expected to perform well in its upcoming report on July 29.
Clear Channel shares are up more than 40% year to date, but down more than 20% since a mid-June peak.
Clear Channel, which has traded for less than $5 per share since 2019, should be avoided by investors. Stocks with low share prices and low volume may experience high volatility. The company has a market capitalization of slightly more than $1 billion.