Stocks with a Strong Balance Sheet History: Investment Opportunities

Stocks with a Strong Earnings History

As the fourth-quarter earnings season approaches rapidly, some companies that have become favorites on Wall Street continue to provide hope to investors. Giants like Delta Air Lines and Bank of America are preparing to announce their financial results this week. These firms are known for their strong performance in exceeding analyst forecasts in the past.

Potential for Stock Price Increase

Fourteen companies in the S&P 500 index are set to announce their results in the coming days. Analysts indicate that if the stocks report numbers that exceed Wall Street's expectations, they are typically rewarded with price increases. According to Bespoke Investment Group data, among those companies preparing to announce earnings this week and have historically exceeded profit forecasts by at least 65% are Taiwan Semiconductor Manufacturing Company (**TSM**) and Commerce Bancshares (**CBSH**).

Delta Air Lines and Bank of America's Announcements

Delta Air Lines will announce its quarterly results tomorrow, and the company has historically managed to exceed analysts' estimates by 69%. Considering that there has been an average increase of 1.6% following each earnings announcement, investors will focus their attention on this release. Goldman Sachs reiterated its “**BUY**” rating for Delta's stock, predicting fourth-quarter earnings of $1.48 per share. However, this figure is likely to fall short of FactSet's consensus estimate of $1.57.

On the other hand, Bank of America is preparing to announce results on Wednesday, paying attention to its financial performance. This bank has a history of exceeding profit estimates by 80%. However, the stock has typically declined by an average of 0.6% following results.

Market Analysis and Future Expectations

HSBC upgraded Bank of America's rating to “**BUY**” and raised its 12-month average price target from $45 to $50. Analyst Saul Martinez noted that the recent decline in the stock presents an attractive opportunity for investors. Bank of America's forecasts for 2026 show it trading at only 10.4 times earnings. This situation offers significant potential worth considering for investors.

In conclusion, companies with a strong earnings history can present significant opportunities for investors. However, following market movements and timing investments appropriately is always crucial for informed investment decisions.