Corporate reporting season is in full swing, and some companies are outperforming in the past when it comes to earnings, which could give investors an edge. CNBC reviewed data from Bespoke Investment Group, which will release a report next week, targeting companies that have outperformed expectations in terms of profits or sales. Stock prices typically trend up on outperformance news. Listed stocks beat analyst estimates by at least 65%, with an average gain of more than 1% on the day of earnings. DR Horton, America’s largest homebuilder, beat analyst expectations by 74%. The company announced its earnings on Tuesday, and its stock price rose an average of 1.6% after the announcement. However, the stock has risen more than 6% over the past year, lagging the broader market’s 17% rise in that time. Despite DR Horton’s strong earnings, Wells Fargo downgraded the stock from overweight to equal weight on January 6th. “DHI is one of the best-managed production builders with unparalleled scale, an enviable manufacturing model and an attractive land strategy,” said analyst Sam Read. “However, the continued peer discounting (LEN took another step down in this month’s scrape; Example 1) and DHI’s investment in its own spec inventory (+4% m/m in December based on our data; Example 2) makes it too harsh to recommend an entry-level builder, even with good management.” DHI 1Y Mountain DHI 1 Year Chart Citizens Financial, which is scheduled to report results on Wednesday, also made the list. The bank beat analyst expectations 80% of the time, and its stock rose an average of 1.4% on earnings day. Last week, Barclays upgraded the stock from equal weight to overweight and set a price target of $77, up 40% from its previous target of $55. Analyst Jason Goldberg said: “We are upgrading CFG from EW to OW as the company is expected to deliver the highest organic revenue growth in the peer group and above-average profit growth in 2026, but its valuation is below its peers.” The number of citizens has jumped 30% in the last month.
