MarketMoodz
Datadog, Lumentum and Block lead next-week earnings momentum as revisions surge
CNBC Pro flags Datadog, Lumentum and Block as among S&P 500 names with accelerating earnings momentum heading into next week. The watchdog highlights revisions, upside targets and buy ratings that could lift near-term performance, even as earnings season offers mixed visibility.
Key Takeaways
- CNBC Pro identifies 121 S&P 500 stocks reporting next week with earnings momentum, including Datadog, Lumentum and Block.
- Momentum criteria require revisions up at least 10% over 3 and 6 months, upside targets of at least 25%, and Buy ratings from 55%+ of analysts.
- Datadog reports next Thursday; Lumentum reports next Tuesday; Block’s date is in the upcoming cycle.
- YTD gains: Datadog +3%; Lumentum +158%; Block +10%.
- Target prices imply upside: Datadog ~$170 (~21%); Lumentum ~$1,270 (~34%); Block ~$100 (~39%).
People Involved
- Matthew O'NeillBank of America Analyst
Entities Involved
- Datadog, Inc. (DDOG)Cloud monitoring software provider
- Lumentum Holdings Inc. (LITE)Optical and photonics components maker
- Block, Inc. (SQ)Financial services and digital payments
- Bank of AmericaBrokerage firm with Buy stance on Block (via Matthew O'Neill)
- Rothschild & Co RedburnAnalyst coverage cited for Datadog and Lumentum
MarketMoodz Analysis
The momentum setup signals potential near-term outperformance for the trio if earnings land above estimates and management raises the outlook. Analysts’ price targets imply meaningful upside, and the Buy ratings bolster the case for a positive earnings reaction in a market still sensitive to AI-related demand and software spend.
Historically, earnings-beat-driven rallies tend to fade if forward guidance disappoints, so the risk is that lofty targets are baked into prices. Still, the names cited sit in software, AI infrastructure and gig-economy/payments ecosystems that have shown resilience amid rate volatility, providing a multi-year growth backdrop while investors test how much of the AI lift is already priced in.
Source: Original Article