Netflix (NFLX) - Get Netflix, Inc. Report, Procter & Gamble (PG) - Get Procter & Gamble Company Report and UnitedHealth (UNH) - Get UnitedHealth Group Incorporated Report have made a CNBC list of companies reporting earnings next week that beat analyst earnings estimates at least 80% of the time.
Stocks on the list also average one-day gains of at least 0.1% following the earnings news. The data come from Bespoke Investment Group.
Netflix tops estimates 81% of the time and has an average one-day gain of 0.3%. For P&G the numbers are 85% beats and a 0.2% return, and for UnitedHealth, it’s 93% beats and a 0.8% return.
Other stocks on the list include Union Pacific (UNP) - Get Union Pacific Corporation Report (84% beats and a 0.8% return), SVB Financial (SIVB) - Get SVB Financial Group Report (92% beats and a 2.2% return) and Intuitive Surgical (ISRG) - Get Intuitive Surgical, Inc. Report (89% beats and a 3% return).
As for Netflix, Morningstar analyst Neil Macker likes the company, assigning it a narrow moat. He raised his fair value estimate for the stock to $275 from $250 in October, “to account for slightly stronger margin expansion expectations due to lower marketing costs” in the third quarter.
But that estimate is still well below the stock’s recent price of $515.86, down 0.64%.
“While management expects to add 8.5 million net new customers during the fourth quarter, this mark would only be in line with last year’s fourth quarter and below the previous two years,” Macker said.
“We think the lower subscriber growth reflects not only saturation in its largest markets but strong competition in the regions with the most potential growth remaining, including Latin America and India.”