This earnings season has been rocky, at best, but some companies have stood out and are expected to see strong gains going forward. With roughly 90% of the S & P 500 having posted fourth-quarter results, just 69% of those companies have beaten analyst expectations. That beat rate is below a three-year average of 79%, according to The Earnings Scout. There have been some high-profile disappointments, including Apple and Google-parent Alphabet. Others crushed it this season, and analysts see more upside from them. CNBC Pro set out to find this earnings season’s winners by screening the S & P 500 for stocks that met the following criteria: Up 10% or more since the start of the earnings season Upside to average price target of 10% or more Buy ratings from at least 51% of analysts covering them 2023 earnings per share growth estimates have improved since the season began Check out the four stocks that made the cut. Earlier this month, Analog Devices reported quarterly earnings and revenue that beat expectations. During the earnings season, the stock has gained 14%. Earnings growth estimates have also grown by more than 10 percentage points since then. Bank of America’s Vivek Arya called Analog Devices a “best-in-class share gainer” following the release. “ADI should be able to sustain profitability growth in an industry downturn. More importantly, with capital intensity peaking likely at 8%-9% and coming down over time, we see a path to 40%+ [free cash flow] margins, well above analog peer Texas Instruments.” Another stock that made the cut is Meta Platforms. The stock is up more than 20% this earnings season, and analysts see the stock rising about 20% over the next 12 months, FactSet data shows . The social media giant on Feb. 1 posted fourth-quarter revenue that beat estimates . Analysts also lauded the company for its shift toward efficiency. Analysts now expect 2023 earnings for the company to grow by 11.9%. Before the earnings season, they forecast a 34% profit decline. “Importantly, we expect this recently-found discipline to drive a stronger and more nimble organization over the long-run, not just for the next 12 months,” JPMorgan analyst Doug Anmuth wrote. Aptiv and Microchip Technology also made the list. Shares of Aptiv, which develops automotive tech, are up more than 17% since the earnings season began, and analysts see nearly 20% more upside, FactSet data shows. Meanwhile, Microchip technology has popped more than 10% in th to hour. — CNBC’s Michael Bloom contributed reporting.
