Most S&P 500 stocks have reported acceptable third-quarter earnings, but some companies are blowing away investor expectations. A recent analysis by Investor’s Business Daily found that seven S&P 500 companies, including Southwest Airlines, Uber Technologies, and International Paper, exceeded analyst profit forecasts by 60% or more.
According to FactSet, roughly three-quarters of the S&P 500 companies have reported quarterly profits, with only 25% topping expectations. However, those that did beat expectations did so by an average margin of 4.6%, which is below the five-year average of 8.5%.
Southwest Airlines stands out as a top performer, with its earnings beating expectations by a staggering 275%. The company’s stock is up only 6% this year, but analysts predict a significant decline in profit.
Other notable performers include Uber Technologies, International Paper, and Pfizer, which reported profits exceeding analyst forecasts by 127%, 76%, and 73.7%, respectively.
These results suggest that some S&P 500 companies are under-promising and over-delivering, despite not receiving the same level of attention as more popular stocks like the Magnificent Seven.
Source: https://www.investors.com/etfs-and-funds/sectors/sp500-stocks-earnings-surpass-investors-wildest-dreams