As we move further into the third-quarter earnings season, several stocks are gaining momentum with notable analyst upgrades and strong growth forecasts. With 64% of S&P 500 companies reporting, earnings growth for the quarter has surpassed 9%, suggesting companies with positive earnings momentum could be poised for even more upside. This watchlist focuses on stocks with increasing analyst earnings forecasts, substantial upside to price targets, and strong buy ratings from at least half of analysts. Here’s what to watch as these companies head into their earnings reports this week:
Emerson Electric (NYSE: EMR) – Automation Leader with Strong Upside Potential
Global technology firm Emerson Electric, known for its automation and engineering solutions, is set to announce its fourth-quarter earnings on Tuesday, November 5. Analysts project EPS of $1.47, a 13.95% increase year-over-year. Emerson has recently earned a rating upgrade from Oppenheimer, which raised the price target to $125, underscoring the company’s growth potential in the industrial and residential sectors. With a diversified product portfolio and increased demand in automation, Emerson’s current trading price of around $108.44 gives it room for upside, as analysts place its average 12-month price target at $125.81. Investors will be closely watching to see if Emerson’s results align with these optimistic projections.
Howmet Aerospace (NYSE: HWM) – Momentum in Aerospace and Defense
Howmet Aerospace, a key supplier to the aerospace and defense industries, will release its earnings on Wednesday, November 6, with analysts expecting EPS of $0.65—a strong 41.3% year-over-year increase. Last quarter, Howmet beat consensus expectations with revenue growth of 14.1%, and earnings are projected to grow by over 20% in the coming year. With 13 of 16 analysts rating it a “Buy,” Howmet’s momentum is being driven by demand for its high-performance components across commercial and defense markets. The average price target sits at $99.43, slightly below the current trading price, but continued strong performance could signal additional growth for this momentum-driven stock.
Air Products and Chemicals (NYSE: APD) – Industrial Strength
Air Products and Chemicals, a leading provider of industrial gases, has benefited from favorable pricing and a solid business mix, with a 17% increase in GAAP EPS in its previous quarter. Analysts have set a 12-month price target averaging $335.65, offering potential upside from the current price, although the stock has been less volatile than some of its peers. With fourth-quarter earnings expected on Thursday, November 7, investors will be closely watching APD’s report for continued strength in revenue and income. While economic factors like inflation could weigh on future results, APD’s diversified market presence across industries offers a strong foundation. Investors are likely to focus on whether APD’s pricing strategy and business diversification will continue to deliver results.