Analysts are getting more bullish on these names with strong earnings growth

Wolfe Research anticipates S&P 500 stocks exhibiting durable top and bottom-line growth and positive 2025 earnings revisions will outperform this earnings season, which commenced with major bank reports. Specific recommendations include natural gas producer EQT, initiated Overweight by Barclays due to improved free cash flow post-Equitrans reintegration, and semiconductor firms Lam Research and Broadcom, both initiated with Buy ratings by Goldman Sachs. Goldman highlights Lam Research's strong operational execution and market share capture, while noting Broadcom's dominant infrastructure software franchise, strategic M&A, and increasing AI revenue contribution, with analysts projecting double-digit upside for these names.

Analysis

According to Wolfe Research, companies demonstrating durable top and bottom-line growth alongside positive 2025 earnings-per-share revisions are positioned to outperform during the current earnings season. This thesis is supported by fresh bullish analyst coverage on several S&P 500 names. Natural gas producer EQT, up 26% year-to-date, was initiated with an 'overweight' rating by Barclays, which projects the planned reintegration of its former pipeline unit, Equitrans Midstream, will drive its all-in free cash flow breakeven below $2.00/Mcf by 2028. This strategic move is expected to ensure durable free cash flow generation even amid low natural gas prices. In the semiconductor space, Goldman Sachs initiated 'buy' ratings on both Lam Research and Broadcom. For Lam Research, up 40% in 2025, the bank highlights exceptional operational execution, noting the company achieved its highest gross margins since the Novellus merger despite revenue being approximately 11% below its 2022 peak. For Broadcom, up 21% this year, Goldman points to a dominant franchise position built through strategic M&A and expects its leadership in enterprise and custom silicon to drive AI-related business to over 40% of the company by 2026. Price targets from the analysts imply potential double-digit upside for all three highlighted stocks.

Key Decisions for Investors

• Investors should prioritize screening for companies with a combination of durable growth and positive forward earnings revisions, as this factor is identified as a key driver for outperformance this earnings season.
• EQT warrants consideration for energy portfolios, as its pending acquisition of Equitrans is a clear strategic catalyst aimed at lowering its cost structure and improving cash flow resilience to commodity price volatility.
• For technology exposure, Lam Research offers a play on operational efficiency and margin strength, while Broadcom presents a case for market dominance and a direct growth vector into the AI infrastructure buildout, with both recently receiving 'buy' initiations.
• Given the respective price targets, investors could consider initiating or adding to positions in EQT, Lam Research, and Broadcom, while closely monitoring the execution of EQT's M&A integration and the semiconductor firms' ability to maintain margin strength and capture projected market share.