Earnings Momentum Builds for Key Players in Mining and AI Hardware Sectors

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Market Optimism Surrounds Upcoming Earnings Reports

As third-quarter earnings season gains momentum, several S&P 500 companies are positioned to report strong results amid favorable analyst sentiment and market conditions. The earnings period has commenced with notable strength, particularly from financial institutions, helping to buoy markets despite ongoing macroeconomic uncertainties and credit market concerns. According to FactSet data analyzed by John Butters, the S&P 500 is projected to deliver earnings growth exceeding 13% for the third quarter, marking the fourth consecutive quarter of double-digit profit expansion for the benchmark index.

Selection Criteria for Momentum Stocks

CNBC Pro identified companies with significant earnings momentum by screening for S&P 500 constituents meeting specific criteria: at least ten upward earnings estimate revisions during the past three months, average analyst price targets revised upward by 10% or more, and earnings estimates increased by 10% or more during the same period. This methodology highlights firms where Wall Street analysts have demonstrated growing confidence in both near-term performance and longer-term prospects. The screening process reveals interesting patterns in market momentum across different sectors.

Newmont: Riding the Gold Wave

Gold mining giant Newmont stands out with 26 upward earnings estimate revisions over the past three months, alongside a 21% increase in average analyst earnings estimates. The stock has delivered impressive year-to-date performance, climbing more than 140% as gold prices reached record highs, though shares experienced an 8% pullback on Friday as the precious metal retreated from its peak levels. Despite this temporary setback, Wall Street maintains a bullish outlook on gold’s trajectory, citing continued central bank purchasing and the metal’s role as a safe-haven asset during periods of market volatility.

Virtus Investment Partners’ chief market strategist Joe Terranova recently reaffirmed his position in Newmont, emphasizing gold’s diversification benefits within investment portfolios. In a Thursday client note, UBS analyst Daniel Major reiterated his buy rating, stating “We think NEM is well placed with expectations lower in 2026 and improving returns and buybacks to underpin the narrative of improving operational performance.” This positive sentiment reflects broader industry developments in resource management and commodity markets.

AI Hardware Suppliers Capitalize on Technology Boom

Lam Research and Amphenol, both critical hardware suppliers in the artificial intelligence ecosystem, have demonstrated remarkable momentum heading into their earnings reports. Their shares have surged approximately 96.5% and 80% year-to-date, respectively, reflecting investor enthusiasm for companies positioned to benefit from the ongoing AI revolution. Analysts have revised Lam Research’s earnings estimates upward 29 times during the past three months, while Amphenol has received 21 upward revisions during the same period.

Bank of America recently upgraded Amphenol and established a $150 price target, substantially above the FactSet consensus average of $131. This projection implies potential upside exceeding 17% from Thursday’s closing price, driven by robust AI rack volume, accelerated data center expansion, and vigorous merger and acquisition activity. These companies are at the forefront of recent technology infrastructure transformations that are reshaping data center economics and capabilities.

Broader Market Implications and Additional Names to Watch

The strong momentum exhibited by these companies reflects broader trends in the market, where specific sectors are benefiting from structural shifts in the global economy. Valero Energy and Globe Life represent additional names that could experience significant movement following their upcoming earnings releases, though their analyst revision patterns have been less pronounced than the highlighted momentum leaders.

The convergence of technological advancement and changing market dynamics is creating unique opportunities for investors. As companies adapt to evolving related innovations in workforce development and digital transformation, the earnings momentum demonstrated by these firms may indicate broader shifts in corporate performance drivers across multiple industries.

Investment Considerations and Risk Factors

While the momentum indicators appear compelling, investors should consider several factors when evaluating these opportunities:

Volatility management: Even strongly trending stocks can experience significant short-term pullbacks, as demonstrated by Newmont’s recent decline
Sector concentration: The momentum leaders span different industries, providing some diversification benefits
Earnings expectations: High expectations create potential for disappointment if results fail to meet elevated projections
Macroeconomic sensitivity: These companies remain exposed to broader economic conditions despite their strong individual positioning

As earnings season progresses, these momentum names will provide valuable insights into the health of key sectors and the sustainability of current market trends.

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