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Earnings Season Shows Strong Start
The third-quarter earnings season is reportedly off to a robust beginning, with major bank results earlier this week helping lift markets despite ongoing volatility tied to macroeconomic concerns. According to analysis from FactSet’s John Butters, the S&P 500 Index will likely report earnings growth above 13% for the third quarter. This would mark the fourth consecutive quarter of double-digit profit growth for the broad market benchmark, sources indicate.
Companies With Upward Momentum
Analysis reportedly identified several companies with significant earnings momentum heading into their upcoming reports. The screening criteria required companies to have at least 10 upward earnings estimate revisions in the past three months, along with average price targets and earnings estimates both revised upward by 10% or more during the same period. This methodology highlights firms where analyst sentiment has turned increasingly bullish ahead of their financial disclosures.
Gold Miner Newmont Shows Strength
Newmont Corporation, the world’s leading gold producer, has reportedly seen analysts revise earnings estimates upward 26 times in the past three months. According to the analysis, average analyst earnings estimates for the stock have grown by 21% during that period. The company has benefited from gold prices reaching record highs, with shares up more than 140% year-to-date despite an 8% pullback on Friday as gold retreated from its peak levels.
Wall Street remains reportedly bullish on gold’s trajectory as the safe-haven asset continues to attract interest amid central bank buying and broader market volatility. Virtus Investment Partners’ chief market strategist Joe Terranova maintained his ownership of Newmont earlier this week, telling CNBC that gold continues to serve as a diversifier in investment portfolios. UBS analyst Daniel Major reportedly reiterated his buy rating on Newmont in a Thursday note to clients, suggesting the company is “well placed with expectations lower in 2026 and improving returns and buybacks to underpin the narrative of improving operational performance.”
AI Hardware Suppliers Gain Traction
Technology firms positioned in the artificial intelligence hardware space are also showing strong momentum, according to reports. Amphenol Corporation and Lam Research, both suppliers to the AI industry, have seen their shares rise approximately 80% and 96.5% this year, respectively.
Analysts have reportedly revised Lam Research’s earnings estimates upward 29 times in the last three months, while Amphenol has seen 21 upward revisions during the same period. Bank of America recently upgraded Amphenol and set a price target of $150, significantly higher than the analysts’ average price target of $131 per FactSet data. The firm’s analysis suggests Amphenol shares could rally more than 17% from Thursday’s close as the company benefits from strong AI rack volume, increased data center buildout, and robust merger and acquisition activity amid broader industry developments.
Broader Market Context
The positive earnings momentum comes amid various market trends and economic crosscurrents. While the earnings picture appears strong, analysts suggest investors should monitor several external factors that could influence market performance, including energy sector developments, technology policy changes, and financial market conditions.
Other companies identified with potential for positive earnings surprises include Valero Energy and Globe Life, both of which meet the screening criteria for upward estimate revisions and analyst optimism. The report states that these companies represent diverse sectors, suggesting the earnings strength may be broadly based rather than concentrated in specific industries.
Looking Ahead
As earnings season progresses, market participants will be watching to see if the optimistic analyst projections translate into actual results. The combination of upward estimate revisions, rising price targets, and strong year-to-date performance creates elevated expectations for these companies’ upcoming reports. According to analysts, the continued strength in earnings could help support markets amid ongoing concerns about economic growth, interest rates, and geopolitical uncertainty, while related innovations in various sectors continue to evolve.
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