According to FactSet’s John Butters, the S&P 500 is expected to report earnings growth exceeding 13% for the third quarter. This would mark the fourth consecutive quarter of double-digit profit growth for the broad market index. To identify companies with strong earnings momentum, CNBC Pro conducted a search for S&P 500 stocks that analysts have recently become more optimistic about.
The companies that made the list meet specific criteria:
- At least 10 upward earnings estimate revisions in the past three months
- Average price target from analysts revised up by 10% or more in the past three months
- Earnings estimates from analysts revised up by 10% or more in the past three months
Newmont has seen analysts revise earnings estimates a remarkable 26 times in the last three months. Additionally, the average analyst earnings estimate for the stock has increased by 21% during this period. The stock has been on an impressive upward trajectory this year, with gold prices reaching record highs. Year-to-date, Newmont’s shares are up more than 140%. However, shares fell 8% on Friday as gold prices pulled back from their all-time highs. Despite this, Wall Street remains optimistic about gold’s future as a safe-haven asset, especially amid ongoing central bank buying and broader market volatility.
Joe Terranova, chief market strategist for Virtus Investment Partners, reaffirmed his commitment to Newmont earlier this week. Speaking on CNBC’s “Fast Money,” he emphasized that gold continues to serve as a valuable diversifier in investment portfolios. UBS analyst Daniel Major also reiterated his buy rating on Newmont in a note to clients on Thursday. He stated, “We think NEM is well placed with expectations lower in 2026 and improving returns and buybacks to underpin the narrative of improving operational performance.”
Other companies in the AI hardware sector, such as Lam Research and Amphenol, are also experiencing significant momentum. Shares of both companies have surged approximately 96.5% and 80% this year, respectively. Analysts have revised Lam Research’s earnings estimates upwards 29 times in the last three months, while Amphenol has seen 21 upward revisions during the same period.
Bank of America recently upgraded Amphenol, setting a price target of $150, which is notably higher than the analysts’ average price target of $131, according to FactSet. This price target suggests that Amphenol shares could potentially rally more than 17% from Thursday’s close, driven by strong AI rack volume, increased data center buildout, and robust M&A activity.
Other stocks poised for potential gains following their upcoming earnings reports include Valero Energy and Globe Life.
