In this article, we look at 10 Stocks With Rising Earnings Estimates and Fresh Catalysts.
Earnings estimate revisions have become a more important screen for investors as the market moves deeper into 2026 with profit expectations still rising. According to FactSet’s June 26 Earnings Insight report, the S&P 500 was expected to post year-over-year earnings growth of 23.1% for Q2 2026, up from 18.8% at the start of the quarter. Revenue expectations also improved, with projected Q2 revenue growth rising to 12.3% from 9.5% over the same period. FactSet noted that analysts also expected earnings growth of 26.7% for Q3 2026 and 24.3% for Q4 2026, suggesting that the revision cycle remains tied to forward demand rather than only backward-looking earnings beats.
The backdrop is not uniform, but several sectors are still benefiting from clearer catalysts. FactSet said 63 S&P 500 companies had issued positive EPS guidance for Q2 2026, above both the five-year and 10-year averages. Technology remains one of the major earnings drivers, with semiconductors expected to be the largest contributor to the sector’s profit growth, while AI continues to show up across corporate commentary. FactSet separately found that AI was mentioned on 337 S&P 500 earnings calls from March 15 through June 11, the highest level in at least a decade.
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Methodology
For this article, we screened U.S.-listed companies that had more upward than downward analyst EPS estimate revisions for the upcoming fiscal year over the past three months. Stocks also needed a company-specific development or a reputable news item within the last 42 days. The final list was ranked by net upward revisions to EPS estimates.
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10. AppLovin Corporation (NASDAQ:APP)
AppLovin Corporation (NASDAQ:APP) is one of the stocks with rising earnings estimates and fresh catalysts. The stock has 2 upward EPS revisions and no downward revisions for the upcoming fiscal year over the last three months, while revenue estimates show 23 upward revisions and 2 downward revisions. That makes AppLovin a lower-ranked name on earnings revision breadth, but still a good fit because the catalyst is unusually direct.
On June 29, Raymond James initiated coverage with a Strong Buy rating and tied its bullish view to AppLovin’s expansion into e-commerce advertising. The firm said the move gives AppLovin a significant long-term growth opportunity beyond its legacy mobile app advertising base. The catalyst is the opening of Applovin Ads, powered by Axon, to a broader advertiser pool, which could turn a curated, access-constrained channel into a more scalable self-serve ad platform. The key watch item is whether e-commerce budgets can add durable revenue without weakening the margin profile that helped drive estimates higher.
AppLovin Corporation (NASDAQ:APP) operates a software platform for mobile app developers and advertisers, including advertising, monetization, and AI-powered campaign optimization tools.
9. Reddit, Inc. (NYSE:RDDT)
Reddit, Inc. (NYSE:RDDT) is one of the stocks with rising earnings estimates and fresh catalysts. The stock has 6 upward EPS revisions and 1 downward revision for the upcoming fiscal year over the last three months, while revenue estimates show 27 upward revisions and 2 downward revisions. The revision mix is stronger on revenue than earnings, which fits a company still building out its monetization model.
On June 22, Axios reported that Reddit expanded its “community intelligence” advertising strategy at Cannes Lions with new tools tied to shopping research and product discovery. Reddit also said nearly half of shoppers verify AI-generated recommendations on the platform before buying, and that 1 in 4 Redditors buy a product after seeing their decision validated there. The catalyst is Reddit’s attempt to turn user discussions into a more valuable ad signal as AI changes search and shopping behavior. That makes the estimate story less about raw user growth and more about improving ad products, higher commercial intent, and better monetization of existing communities.
Reddit, Inc. (NYSE:RDDT) operates an online community platform where users create, discuss, rank, and search content across interest-based forums.
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