As Wall Street gears up for another busy week of earnings reports, it is evident that the current earnings season has been positive so far. With over 160 companies in the S & P 500 expected to post their results, and six of them also being included in the Dow Jones Industrial Average, the halfway point of the first quarter earnings season is fast approaching. According to FactSet, as of Friday, 77% of companies have exceeded analyst estimates for their quarterly earnings, while 60% have also beaten expectations.
One of the companies that analysts have high hopes for is Amazon. Analysts have significantly increased Amazon’s three- and six-month earnings estimates by 139% and 309%, respectively. This has led to a consensus price target that suggests a potential upside of 31% for the e-commerce giant. With shares already up 18% for the year, the owner of Amazon Web Services (AWS) is expected to release its first-quarter earnings after markets close on Tuesday. Both UBS and Citi have reiterated buy ratings on Amazon and raised their 12-month price targets, with Citi analyst Ronald Josey highlighting the company as one of his top picks in the Internet sector.
Another company to keep an eye on is Mastercard, which has seen its earnings estimates rise by 12% in the past three months and 20% over the past six months. Analysts believe that the stock could rally 18% based on average price targets. Earlier this month, TD Cowen initiated coverage of the credit card company with a buy rating and a price target of $545. With shares already up 8% for the year, Mastercard is set to release its results before Wednesday’s stock market open.
Equinix, a data center company, has also caught the attention of analysts. With earnings estimates raised by 29% over the past three and six months, the Silicon Valley real estate investment trust is one to watch. Despite shares falling 9% this year, analysts predict that the stock could rally 11% from its current levels. As Wall Street continues to analyze and anticipate the upcoming earnings reports, it is clear that these three companies are among those expected to make significant moves in the stock market based on their financial performance.
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