These stocks reporting earnings have history of beating expectations

Several regional financials set to report this week could rally after their earnings reports, according to Bespoke Investment Group. Earnings season is heating up, and investors’ expectations are strong leading up to several financial reports due next week. For the third quarter, the estimated year-over-year earnings growth rate for the S & P 500 is 4.2%, which would mark the fifth straight quarter of year-over-year earnings growth for the index if it happens, according to FactSet. Nearly half the S & P 500 companies that will report earnings this week are financials. The group is expected to report a year-over-year earnings decline of 0.4% for the third quarter. With this in mind, Bespoke Investment Group screened for companies reporting next week that have beat consensus analyst estimates at least 70% of the time. These stocks — many of which are financials — have each gained, on average, 1% the day of or following their earnings release. Citizens Financial , which reports on Wednesday, is one of the names on the list. The regional bank has managed to outperform analysts’ earnings expectations 80% of the time, which has led to an average daily jump of 1.5% following its quarterly report. Shares have risen about 25.1% year to date. Analysts polled by FactSet have an average overweight rating on Citizens Financial, with a price target that implies 10.8% potential upside. The stock is also considered a high-dividend name with strong upside potential, according to a recent CNBC Pro stock screener . The company has a 4.14% dividend yield and low debt-to-equity ratio of 52.5%, making it an attractive play as the Federal Reserve’s rate-cutting cycle kicks off. Western Alliance , another regional banking stock, has a strong earnings beat rate of 88% and average move of roughly 2.1% following earnings. It is set to report results Oct. 17. After central bankers announced a 50 basis point rate cut in mid-September and raised investors’ confidence in a soft landing, JPMorgan analyst Steven Alexopoulos named Western Alliance as a top financial stock pick. He said in a Sept. 19 note to clients that he expects the