These companies are reporting earnings next week and have momentum on their side

The S&P 500 is projected to report over 13% earnings growth for Q3, marking a fourth consecutive quarter of double-digit expansion, with several companies demonstrating strong momentum ahead of their reports. Gold miner Newmont has seen 26 upward analyst earnings revisions and a 21% increase in average estimates over three months, driven by high gold prices and sustained bullish sentiment despite recent volatility. Similarly, AI hardware suppliers Lam Research and Amphenol have experienced numerous upward revisions and significant stock appreciation, with Bank of America upgrading Amphenol due to robust AI demand and data center expansion.

Analysis

The third-quarter earnings season is exhibiting robust performance, with the S&P 500 projected to achieve over 13% earnings growth, marking the fourth consecutive quarter of double-digit expansion. This positive momentum is supported by strong results from major banks and a selection of companies demonstrating significant upward revisions in analyst estimates and price targets.

Newmont (NEM), a gold miner, exemplifies this trend with 26 upward earnings estimate revisions and a 21% increase in average analyst estimates over the past three months. Despite an 8% share price decline on Friday following a gold price pullback, the stock remains up over 140% year-to-date, driven by record gold prices and sustained Wall Street bullishness on gold as a safe-haven asset amid central bank buying and market volatility.

In the technology sector, AI hardware suppliers Lam Research (LRCX) and Amphenol (APH) also show strong momentum, with shares up 96.5% and 80% year-to-date, respectively. Amphenol, in particular, received an upgrade from Bank of America to a $150 price target, suggesting over 17% upside from Thursday's close, fueled by strong AI rack volume, increased data center buildout, and robust M&A activity.

Key Decisions for Investors

• Investors should consider companies exhibiting strong analyst momentum and upward earnings revisions, particularly in high-growth sectors like AI hardware.
• For Newmont, monitor gold price stability and operational improvements, potentially viewing recent pullbacks as entry opportunities if the long-term bullish gold thesis remains intact.
• Evaluate AI hardware suppliers such as Amphenol and Lam Research for continued growth potential, acknowledging their significant year-to-date appreciation and the drivers from data center expansion and M&A.