Datadog and Block are among the companies reporting their latest quarterly results next week that can count on earnings momentum as a catalyst. While most of the big names have already reported results, earnings season continues next week, with 121 companies in the S & P 500 on the docket to post earnings. Two that are also components of the Dow Jones Industrial Average — McDonald’s and Walt Disney Co — are the week’s headliners, while restaurant chains, media companies and gig economy platforms will also have a big showing. CNBC Pro screened data from FactSet to identify the S & P 500 companies reporting results next week that have seen accelerated earnings momentum lately. The stocks below had to meet the following criteria: Earnings estimates revised up by at least 10% in the past three and past six months Have an average analyst price target implying upside of at least 25% Have buy ratings from at least 55% of analysts covering the company One stock seeing improved earnings estimates is Datadog, which reports next Thursday . Shares of the software company have added 3% this year. Rothschild & Co. Redburn initiated coverage of the stock at a buy rating on April 23. “With a near-worst-case AI scenario priced in, we see Datadog as a structural winner due to its success in delivering product-led growth and its go-to-market track record,” the firm wrote. “Despite demonstrating a recovery in growth after a macro-driven optimization cycle (2022-23), we believe Datadog’s growth profile — among the highest-quality in the infrastructure software ecosystem — is not fully reflected by the market.” Analyst Daniel Sepahi’s $170 price target offers upside of 21% from where shares of Datadog closed on Friday. Lumentum , up a staggering 158% this year, could also get a post-earnings boost. The photonic play reports earnings next Tuesday . On Friday, Rothschild & Co. Redburn launched its coverage of the name at a buy rating and price target of $1,270, calling for upside of about 34%. “Recent revenue growth has catalyzed significant margin recovery,” wrote analyst Mike Harrison. “Lumentum plays a pivotal role in the optical supply chain. The expansion in AI data center capex has transformed the company’s revenue trajectory.” Fintech stock Block was another name on the list. Bank of America analyst Matthew O’Neill reiterated his buy rating on the stock ahead of its next earnings report. “We are leaning toward XYZ into the print, as the setup appears more fundamentally supportive with expectations looking achievable,” O’Neill wrote in an April 22 note. “We believe clean execution and disciplined messaging around margins, monetization, and capital allocation could support a constructive stock reaction, even without material top line upside.” The analyst’s price objective of $100 implies a 39% rally ahead for shares of Block. Shares have added 10% this year.
