Well-liked stocks such as Roblox could move sharply higher on the back of their upcoming earnings reports. Second-quarter earnings season is impressing Wall Street. According to FactSet, 80% of S & P 500 companies that have reported so far have posted a positive earnings and revenue surprise for the period, which is above the five-year average of 78%. The S & P 500 index is also notably reporting a net profit margin above 12% for the fifth consecutive quarter, and analysts believe net profit margins for the index will improve in the second half of the year. CNBC Pro screened for stocks that could outperform this week after the release of quarterly results. We found these names by examining forecast moves based on options market action. Below is the list of stocks that are expected to post notable swings: Roblox, up a whopping 105% this year, could see shares jump 11.3% after reporting second-quarter results on Thursday. Wedbush analyst Alicia Reese recently said Roblox is “the most compelling growth opportunity in the video game sector” given its recent games driving huge platform growth, along with its slew of new and upcoming products and other profit drivers. Reese is not alone in her bullish view on the stock, as 24 out of the 34 analysts covering the name rate shares a strong buy or buy, according to LSEG. RBLX 1Y mountain Roblox stock performance over the past year. Roku , which has rallied more than 25% year to date, could also continue its win streak and gain 9.5% on the back of its earnings out Thursday. Leading up to Roku’s results, JPMorgan on July 18 reiterated an overweight rating on the streaming company and raised its price target to $100 per share from $85. That new target implies nearly 11% potential upside. “We believe Roku is well positioned to deliver a beat/raise qtr, with ad spend largely stable in 2Q and China tariff de-escalation,” JPMorgan analyst Cory Carpenter said, adding that Roku’s previous decision to not incorporate its Frndly acquisition into its revenue guidance now appears as “overly conservative.” Carpenter is one of several analysts on the Street that remains bullish on Roku. Of the 33 analysts covering the stock, 7 rate it a strong buy while 12 maintain a buy rating and 13 a hold. E-commerce name Beyond and used car retailer Carvana are the two S & P 500 companies that are expected to gain the most from earnings, with respective anticipated moves of 18.3% and 11.6%. Both stocks have soared this year. Beyond is up nearly 109% year to date, while Carvana has rallied about 65%. Carvana received an upgrade on Friday to outperform from Oppenheimer , which said it sees nearly 40% upside ahead for the stock. “Following significant fundamental and financial repositioning, the CVNA business model is now ‘humming,’ generating meaningful cash, scaling, and capitalizing well upon improving, underlying demand trends, within the space,” said Oppenheimer analyst Brian Nagel, who previously held a perform rating on Carvana.
