Earnings season is heating up. UBS thinks these stocks could beat expectations

UBS identified 40 companies it expects could beat earnings estimates, including SharkNinja, Gen Digital and Labcorp; the article reports 27 S&P 500 companies had reported third-quarter results so far, with mixed results among major banks and UnitedHealth Group beating expectations. SharkNinja raised fiscal-year sales-growth guidance to 16%-17%, Gen Digital forecast fiscal 2027 revenue of $5.375B-$5.475B and EPS of $2.87-$2.97, and Labcorp forecast 2026 adjusted EPS of $18.10-$18.55 and revenue growth of 5.4%-6.3%; the anticipated earnings surprises are not yet reported.

Analysis

Treat UBS’s screen as a source of event candidates, not an earnings edge by itself: analyst estimates above consensus can already be reflected in prices, especially where the stock has rerated. The key is whether reported results change forward estimates and cash generation—not merely whether EPS clears a bar.

For SN, a beat may have limited upside after a strong run and prior guidance increase; product demand, promotional intensity, and gross-margin trajectory matter more than the headline. A miss or cautious holiday commentary could produce asymmetric downside. For LH, the more durable test is whether underlying testing volumes and pricing support guidance without relying on one-off mix or cost actions. A clean result could sustain relative defensiveness, but reimbursement and labor-cost pressure remain structural risks versus Quest Diagnostics.

GEN is the most event-skewed setup. The reported GoDaddy approach is not a completed transaction: a deal could create strategic value, but price, financing, integration, and distraction risk may overwhelm a modest operating beat. GDDY’s outcome is similarly binary; do not treat the reported approach as secured deal value.

Near term, earnings reactions may be dominated by positioning and guidance. Over 1–3 months, estimate revisions and any transaction clarification should matter more. Over 6–18 months, SN’s growth durability, LH’s volume/reimbursement mix, and GEN’s capital allocation are the real tests. Falsifiers: SN lowers its outlook or shows margin deterioration; LH misses its revenue-growth or adjusted-EPS outlook; GEN’s operating outlook weakens or a GoDaddy transaction advances on unattractive terms. No valuation or options-pricing data are provided, so avoid asserting target prices or a pre-event options edge.

Key Decisions for Investors

• Do not chase SN into the early-November report solely on the UBS beat call. Consider a post-report long only if sales trends support the raised outlook and margins hold; exit the thesis on guidance reduction or clear margin erosion.
• Keep LH on a post-earnings watchlist for a conditional long: require evidence that revenue growth and adjusted EPS are supported by testing demand and cash generation, not just cost effects. Reassess if guidance is cut or reimbursement/labor trends worsen.
• Avoid a directional GEN position ahead of the Oct. 28 event while the reported GoDaddy approach remains unresolved. Revisit after results and transaction terms are clarified; treat a high-premium, financing-heavy deal as a potential negative for GEN even if it expands the business.
• No forced trade across the three names: compare actual guidance revisions and post-report price action with the pre-event move before adding exposure; the central risk is a technically positive EPS surprise that fails to lift forward expectations.