18 Rallying Stocks Releasing Earnings Next Week With a History Of Strong Earnings Surprises

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 |  Includes: ADS, ALXN, CB, EBAY, EXPO, ISRG, MANH, MSFT, PENN, PII, RLI, SCSS, STBC, SYNA, TIN, TSCO, WDC, WNS
by: Kapitall

Whenever a company releases earnings data that beats analyst expectations, the stock will often rise in value to price in the good news. If you believe that company characteristics can cause EPS surprises to persist across time, this list may be very interesting to you.

We ran a screen on the companies reporting their quarter 3 earnings next week for those that are rallying above their 20-day, 50-day, and 200-day moving averages.

We then screened these stocks for those that have consistently beaten their EPS estimates over the last four quarters.‪

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think these companies will surprise the market again? Use this list as a starting-off point for your own analysis.

List sorted by average earnings surprise.

1. State Bancorp Inc. (NASDAQ:STBC): Operates as the holding company for State Bank of Long Island that offers a range of banking services to commercial real estate owners and developers, small to middle market businesses, professional service firms, municipalities, and consumers in New York. Market cap of $188.09M. Earnings to be announced on 10/18. The stock is currently trading at 5.88%above its 20-Day SMA, 2.56% above its 50-Day SMA, and 1.13% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.17 vs. estimate at 0.06 (surprise of 183.3%). In Dec 2010: Reported EPS at 0.21 vs. estimate at 0.14 (surprise of 50%). In Mar 2011: Reported EPS at 0.15 vs. estimate at 0.13 (surprise of 15.4%). In Jun 2011: Reported 0.19 vs. estimate at 0.14 (surprise of 35.7%. [Average earnings surprise at 71.1%]. The stock has had a couple of great days, gaining 12.79% over the last week.

2. RLI Corp. (NYSE:RLI): Underwrites property and casualty insurance primarily in the United States. Market cap of $1.43B. Earnings to be announced on 10/18. The stock is currently trading at 7.37%above its 20-Day SMA, 9.86% above its 50-Day SMA, and 16.21% above its 200-Day SMA. In Sep 2010: Reported EPS at 1.19 vs. estimate at 0.96 (surprise of 24%). In Dec 2010: Reported EPS at 1.66 vs. estimate at 0.98 (surprise of 69.4%). In Mar 2011: Reported EPS at 1.11 vs. estimate at 0.92 (surprise of 20.7%). In Jun 2011: Reported 1.91 vs. estimate at 1.03 (surprise of 85.4%. [Average earnings surprise at 49.88%]. The stock is a short squeeze candidate, with a short float at 10.05% (equivalent to 16.85 days of average volume). The stock has had a couple of great days, gaining 10.37% over the last week.

3. Polaris Industries, Inc. (NYSE:PII): Designs, engineers, and manufactures off-road vehicles. Market cap of $3.88B. Earnings to be announced on 10/18. The stock is currently trading at 6.10%above its 20-Day SMA, 7.78% above its 50-Day SMA, and 17.85% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.69 vs. estimate at 0.57 (surprise of 21.1%). In Dec 2010: Reported EPS at 0.78 vs. estimate at 0.74 (surprise of 5.4%). In Mar 2011: Reported EPS at 0.67 vs. estimate at 0.35 (surprise of 91.4%). In Jun 2011: Reported 0.69 vs. estimate at 0.59 (surprise of 16.9%. [Average earnings surprise at 33.7%]. The stock is a short squeeze candidate, with a short float at 8.93% (equivalent to 5.16 days of average volume). The stock has had a couple of great days, gaining 15.48% over the last week.

4. Select Comfort Corporation (NASDAQ:SCSS): Develops, manufactures, markets, and supports adjustable-firmness beds and other sleep-related accessory products in the U. Market cap of $867.85M. Earnings to be announced on 10/19. The stock is currently trading at 2.69%above its 20-Day SMA, 4.86% above its 50-Day SMA, and 11.25% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.19 vs. estimate at 0.16 (surprise of 18.8%). In Dec 2010: Reported EPS at 0.13 vs. estimate at 0.1 (surprise of 30%). In Mar 2011: Reported EPS at 0.3 vs. estimate at 0.19 (surprise of 57.9%). In Jun 2011: Reported 0.2 vs. estimate at 0.17 (surprise of 17.6%. [Average earnings surprise at 31.07%]. The stock has had a couple of great days, gaining 24.9% over the last week.

5. Temple-Inland Inc. (NYSE:TIN): Manufactures and sells corrugated packaging and building products primarily in the United States and Mexico. Market cap of $3.43B. Earnings to be announced on 10/21. The stock is currently trading at 0.69%above its 20-Day SMA, 10.83% above its 50-Day SMA, and 23.42% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.41 vs. estimate at 0.39 (surprise of 5.1%). In Dec 2010: Reported EPS at 0.31 vs. estimate at 0.27 (surprise of 14.8%). In Mar 2011: Reported EPS at 0.22 vs. estimate at 0.16 (surprise of 37.5%). In Jun 2011: Reported 0.21 vs. estimate at 0.17 (surprise of 23.5%. [Average earnings surprise at 20.22%]. This is a risky stock that is significantly more volatile than the overall market (beta = 2.39). The stock has gained 74.1% over the last year.

6. Tractor Supply Company (NASDAQ:TSCO): Operates retail farm and ranch stores in the United States. Market cap of $4.76B. Earnings to be announced on 10/19. The stock is currently trading at 1.03%above its 20-Day SMA, 7.27% above its 50-Day SMA, and 13.19% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.43 vs. estimate at 0.37 (surprise of 16.2%). In Dec 2010: Reported EPS at 0.67 vs. estimate at 0.62 (surprise of 8.1%). In Mar 2011: Reported EPS at 0.24 vs. estimate at 0.16 (surprise of 50%). In Jun 2011: Reported 1.23 vs. estimate at 1.2 (surprise of 2.5%. [Average earnings surprise at 19.2%]. The stock has had a couple of great days, gaining 10.74% over the last week.

7. Manhattan Associates, Inc. (NASDAQ:MANH): Develops and provides supply chain software solutions for the planning and execution of supply chain activities. Market cap of $767.05M. Earnings to be announced on 10/18. The stock is currently trading at 4.81%above its 20-Day SMA, 5.12% above its 50-Day SMA, and 8.29% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.32 vs. estimate at 0.27 (surprise of 18.5%). In Dec 2010: Reported EPS at 0.32 vs. estimate at 0.31 (surprise of 3.2%). In Mar 2011: Reported EPS at 0.41 vs. estimate at 0.39 (surprise of 5.1%). In Jun 2011: Reported 0.65 vs. estimate at 0.45 (surprise of 44.4%. [Average earnings surprise at 17.8%]. The stock has had a couple of great days, gaining 14.53% over the last week.

8. The Chubb Corporation (NYSE:CB): Provides property and casualty insurance to businesses and individuals. Market cap of $17.70B. Earnings to be announced on 10/20. The stock is currently trading at 4.27%above its 20-Day SMA, 3.67% above its 50-Day SMA, and 2.52% above its 200-Day SMA. In Sep 2010: Reported EPS at 1.69 vs. estimate at 1.44 (surprise of 17.4%). In Dec 2010: Reported EPS at 1.69 vs. estimate at 1.57 (surprise of 7.6%). In Mar 2011: Reported EPS at 1.35 vs. estimate at 1.14 (surprise of 18.4%). In Jun 2011: Reported 1.27 vs. estimate at 1 (surprise of 27%. [Average earnings surprise at 17.6%]. The stock has had a couple of great days, gaining 6.52% over the last week.

9. Exponent Inc. (NASDAQ:EXPO): Provides engineering and scientific consulting services worldwide. Market cap of $595.82M. Earnings to be announced on 10/19. The stock is currently trading at 5.51%above its 20-Day SMA, 7.64% above its 50-Day SMA, and 6.85% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.52 vs. estimate at 0.43 (surprise of 20.9%). In Dec 2010: Reported EPS at 0.41 vs. estimate at 0.34 (surprise of 20.6%). In Mar 2011: Reported EPS at 0.53 vs. estimate at 0.47 (surprise of 12.8%). In Jun 2011: Reported 0.55 vs. estimate at 0.51 (surprise of 7.8%. [Average earnings surprise at 15.52%]. The stock has had a couple of great days, gaining 11.89% over the last week.

10. SanDisk Corp. (SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap of $10.75B. Earnings to be announced on 10/20. The stock is currently trading at 6.94%above its 20-Day SMA, 14.91% above its 50-Day SMA, and 0.54% above its 200-Day SMA. In Sep 2010: Reported EPS at 1.3 vs. estimate at 1.05 (surprise of 23.8%). In Dec 2010: Reported EPS at 1.27 vs. estimate at 1.1 (surprise of 15.5%). In Mar 2011: Reported EPS at 1.03 vs. estimate at 1 (surprise of 3%). In Jun 2011: Reported 1.14 vs. estimate at 1 (surprise of 14%. [Average earnings surprise at 14.08%]. Might be undervalued at current levels, with a PEG ratio at 0.64, and P/FCF ratio at 8.43. The stock has had a couple of great days, gaining 15.42% over the last week.

11. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $227.35B. Earnings to be announced on 10/20. The stock is currently trading at 3.97%above its 20-Day SMA, 4.97% above its 50-Day SMA, and 4.24% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.62 vs. estimate at 0.55 (surprise of 12.7%). In Dec 2010: Reported EPS at 0.77 vs. estimate at 0.68 (surprise of 13.2%). In Mar 2011: Reported EPS at 0.61 vs. estimate at 0.56 (surprise of 8.9%). In Jun 2011: Reported 0.69 vs. estimate at 0.58 (surprise of 19%. [Average earnings surprise at 13.45%]. Might be undervalued at current levels, with a PEG ratio at 0.89, and P/FCF ratio at 11.68. The stock has had a couple of great days, gaining 9.82% over the last week.

12. Penn National Gaming Inc. (NASDAQ:PENN): Owns and manages gaming and pari-mutuel properties in the United States. Market cap of $3.01B. Earnings to be announced on 10/20. The stock is currently trading at 7.81%above its 20-Day SMA, 3.51% above its 50-Day SMA, and 1.75% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.37 vs. estimate at 0.33 (surprise of 12.1%). In Dec 2010: Reported EPS at 0.3 vs. estimate at 0.28 (surprise of 7.1%). In Mar 2011: Reported EPS at 0.48 vs. estimate at 0.41 (surprise of 17.1%). In Jun 2011: Reported 0.55 vs. estimate at 0.47 (surprise of 17%. [Average earnings surprise at 13.33%]. The stock is a short squeeze candidate, with a short float at 7.16% (equivalent to 6.54 days of average volume). The stock has had a couple of great days, gaining 17.86% over the last week.

13. Intuitive Surgical, Inc. (NASDAQ:ISRG): Designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Market cap of $14.83B. Earnings to be announced on 10/18. The stock is currently trading at 0.81%above its 20-Day SMA, 3.54% above its 50-Day SMA, and 9.77% above its 200-Day SMA. In Sep 2010: Reported EPS at 2.14 vs. estimate at 2.1 (surprise of 1.9%). In Dec 2010: Reported EPS at 3.02 vs. estimate at 2.25 (surprise of 34.2%). In Mar 2011: Reported EPS at 2.59 vs. estimate at 2.49 (surprise of 4%). In Jun 2011: Reported 2.91 vs. estimate at 2.71 (surprise of 7.4%. [Average earnings surprise at 11.88%]. The stock has had a couple of great days, gaining 8.78% over the last week.

14. WNS (Holdings) Ltd. (NYSE:WNS): Provides offshore business process outsourcing (NYSE:BPO) services. Market cap of $528.84M. Earnings to be announced on 10/19. The stock is currently trading at 3.73%above its 20-Day SMA, 11.09% above its 50-Day SMA, and 16.37% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.31 vs. estimate at 0.25 (surprise of 24%). In Dec 2010: Reported EPS at 0.33 vs. estimate at 0.3 (surprise of 10%). In Mar 2011: Reported EPS at 0.32 vs. estimate at 0.31 (surprise of 3.2%). In Jun 2011: Reported 0.22 vs. estimate at 0.2 (surprise of 10%. [Average earnings surprise at 11.8%]. The stock has had a good month, gaining 14.75%.

15. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Market cap of $12.53B. Earnings to be announced on 10/20. The stock is currently trading at 6.34%above its 20-Day SMA, 17.24% above its 50-Day SMA, and 36.32% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.25 vs. estimate at 0.22 (surprise of 13.6%). In Dec 2010: Reported EPS at 0.26 vs. estimate at 0.25 (surprise of 4%). In Mar 2011: Reported EPS at 0.3 vs. estimate at 0.25 (surprise of 20%). In Jun 2011: Reported 0.29 vs. estimate at 0.27 (surprise of 7.4%. [Average earnings surprise at 11.25%]. The stock has had a couple of great days, gaining 11.52% over the last week.

16. Alliance Data Systems Corporation (NYSE:ADS): Provides data-driven and transaction-based marketing, and customer loyalty solutions primarily in the United States and Canada. Market cap of $4.94B. Earnings to be announced on 10/20. The stock is currently trading at 4.01%above its 20-Day SMA, 6.31% above its 50-Day SMA, and 12.45% above its 200-Day SMA. In Sep 2010: Reported EPS at 1.55 vs. estimate at 1.51 (surprise of 2.6%). In Dec 2010: Reported EPS at 1.56 vs. estimate at 1.42 (surprise of 9.9%). In Mar 2011: Reported EPS at 2.03 vs. estimate at 1.68 (surprise of 20.8%). In Jun 2011: Reported 1.75 vs. estimate at 1.69 (surprise of 3.6%. [Average earnings surprise at 9.22%]. The stock is a short squeeze candidate, with a short float at 24.2% (equivalent to 12.59 days of average volume). The stock has had a couple of great days, gaining 10.2% over the last week.

17. Synaptics Inc. (NASDAQ:SYNA): Develops and supplies custom-designed human interface solutions that enable people to interact with various mobile computing, communications, entertainment, and other electronic devices. Market cap of $884.08M. Earnings to be announced on 10/20. The stock is currently trading at 13.0%above its 20-Day SMA, 13.03% above its 50-Day SMA, and 2.19% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.67 vs. estimate at 0.65 (surprise of 3.1%). In Dec 2010: Reported EPS at 0.72 vs. estimate at 0.68 (surprise of 5.9%). In Mar 2011: Reported EPS at 0.55 vs. estimate at 0.48 (surprise of 14.6%). In Jun 2011: Reported 0.57 vs. estimate at 0.54 (surprise of 5.6%. [Average earnings surprise at 7.3%]. The stock is a short squeeze candidate, with a short float at 21.69% (equivalent to 14.82 days of average volume). The stock has had a couple of great days, gaining 18.39% over the last week.

18. eBay Inc. (NASDAQ:EBAY): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap of $41.63B. Earnings to be announced on 10/19. The stock is currently trading at 3.55%above its 20-Day SMA, 6.26% above its 50-Day SMA, and 3.67% above its 200-Day SMA. In Sep 2010: Reported EPS at 0.4 vs. estimate at 0.37 (surprise of 8.1%). In Dec 2010: Reported EPS at 0.52 vs. estimate at 0.47 (surprise of 10.6%). In Mar 2011: Reported EPS at 0.47 vs. estimate at 0.46 (surprise of 2.2%). In Jun 2011: Reported 0.48 vs. estimate at 0.46 (surprise of 4.3%. [Average earnings surprise at 6.3%]. The stock has had a couple of great days, gaining 14.91% over the last week.

*Earnings surprise data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.