About 25% of the companies in the S&P 500 have so far reported their earnings for the December quarter.
Collectively, they’ve recorded a 31% annualized increase in earnings.
Among names that are now scheduled to report their financial results next week, a handful have a history of beating Street estimates and seeing a positive response in terms of stock price action.
Two of them that look particularly attractive to own at writing are: Chipotle and Monolithic Power.
Let’s take a closer look at what each of these has in store for investors.
Chipotle Mexican Grill Inc (NYSE: CMG)
Chipotle is scheduled to report its fourth-quarter earnings on February 4th.
The consensus is for it to earn 24 cents on a per-share basis in its recently concluded quarter versus 21 cents per share a year ago.
The chain of fast-casual restaurants exceeds Street estimates more than 75% of the time and sees its stock price climb some 1.6% on average on the day after the release.
Heading into its Q4 report, analysts are bullish on Chipotle stock. RBC sees it rallying to $75 by the end of 2025.
Its price target indicates the potential for another 30% gain from current levels.
The investment firm has immense confidence in CMG’s ability to do fairly well irrespective of the macroeconomic backdrop.
Potential for operational efficiencies and international unit growth could help drive the company’s share price up this year, it told investors in a recent note.
Despite a 10% decline since its recent high, Chipotle stock is not, however, inexpensive to own currently.
It also doesn’t pay a dividend at the time of writing.
Chipotle stock is particularly attractive to own at writing as it’s currently down about 10% versus its recent high.
It does not, however, pay a dividend at the time of writing.
Monolithic Power Systems Inc (NASDAQ: MPWR)
Another name that has a history of beating earnings estimates and tends to push up a day after is Kirkland-headquartered Monolithic Power.
The company that designs, develops, and markets power solutions for various electronic systems exceeds Street estimates more than 85% of the time and typically gains over 2.0% the next day.
MPWR has lost about 30% over the past three months which has made the risk-reward all the more favorable when it comes to investing in it.
Monolithic Power is scheduled to report its fiscal fourth-quarter results on February 6th.
The consensus is for it to earn $3.13 per share – significantly better than the $2.04 a share it earned in the same quarter last year.
Heading into its earnings release, Wall Street has a consensus “overweight” rating on Monolithic Power stock.
The Street-high price target of $1,100 indicates potential for an exciting 70% upside from current levels.
Unlike Chipotle, MPWR currently pays a dividend yield of 0.78% as well which makes it even more attractive for investors in search of an additional source of passive income.
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