Datadog and Block are among the companies reporting their latest quarterly results next week, and earnings momentum could be counted on as a catalyst. Most big-name companies have already announced their earnings, but earnings season continues next week with 121 S&P 500 companies scheduled to report results. McDonald’s and Walt Disney, two companies that are members of the Dow Jones Industrial Average, will be the headliners this week, with restaurant chains, media companies and gig economy platforms also expected to get a lot of attention. CNBC Pro screened FactSet data to identify which S&P 500 companies reporting earnings next week have seen earnings momentum accelerate recently. The following stocks had to meet the following criteria: Earnings estimates had to be revised upward by at least 10% in the past three months and the past six months Have an average analyst price target suggesting an upside of at least 25% Have a Buy rating from at least 55% of the analysts covering the company One of the stocks seeing improved earnings estimates is Datadog, which will be released next Thursday. The software company’s stock has increased 3% this year. Rothschild & Company Redburn initiated coverage on the stock on April 23 with a buy rating. “With near-worst-case AI scenarios priced in, we see Datadog as a structural winner due to its successful product-led growth and go-to-market track record,” the company wrote. “We believe the market has not fully reflected Datadog’s growth profile, which is of the highest quality in the infrastructure software ecosystem, despite an indication of a return to growth after a macro-driven optimization cycle (2022-23).” Analyst Daniel Sepahi’s $170 price target suggests a 21% upside from Datadog stock’s Friday close. Lumentum, which is up an impressive 158% this year, could also receive a post-earnings boost. Photonic Play will report earnings next Tuesday. On Friday, Rothschild & Co. Redburn initiated coverage on the name with a buy rating and price target of $1,270, calling for an upside of approximately 34%. “Recent revenue growth has driven a strong margin recovery,” analyst Mike Harrison said. “Lumentum plays a critical role in the optical supply chain. Increased capital spending in AI data centers has changed the company’s revenue trajectory.” Fintech stocks also made the list. Bank of America analyst Matthew O’Neill reiterated his buy rating on the stock ahead of its next earnings report. “We’re leaning toward XYZ in print because the plan has more fundamental support and expectations look more achievable,” O’Neill wrote in an April 22 memo. “We believe that clean execution and disciplined messaging on margins, monetization, and capital allocation can support a constructive stock price reaction, even without significant top-line upside.” The analyst’s $100 price target implies 39% upside for Block stock going forward. The stock is up 10% this year.
