3 Stocks With Analyst Revisions That Could Drive Earnings Surprises

The fourth quarter earnings season will begin in mid-January. Earnings growth is one of the most reliable signals of future stock price growth. However, many investors get caught unaware after a company posts strong results. That can be frustrating, as the largest moves in a stock often occur immediately after earnings.

That means you’ll want to have a position in a particular stock before the earnings report. But that requires you to have conviction that a stock is going to deliver strong results. One tool that can help with that is analyst revisions.

There are times when companies release financial information ahead of their earnings report as a signal to analysts, who may then issue a bullish revision. When analysts consistently raise their forward earnings expectations, it reflects improving business conditions, stronger-than-expected demand, or better operating leverage. Over time, stocks with positive revision momentum tend to outperform those with stagnant or declining estimates.

Currently, with economic data sending mixed signals and corporate executives remaining cautious, earnings momentum—rather than headline guidance—is becoming a more reliable indicator. Here are three stocks where estimate revisions suggest improving fundamentals beneath the surface.

Arista Networks: Networking Demand Keeps Surprising to the Upside

Arista Networks Inc. (NYSE: ANET) remains one of the strongest beneficiaries of enterprise networking upgrades and AI-driven data center expansion. The key driver is Arista’s positioning in high-speed switching, where AI workloads require increasingly sophisticated networking infrastructure. As hyperscalers expand capacity and enterprises modernize their networks, Arista’s revenue visibility has improved.

What stands out is not just top-line growth, but operating leverage. Margins have remained resilient despite competitive pressures, prompting analysts to revise earnings upward across multiple reporting periods.

Since Arista reported earnings in November, analyst sentiment was mixed. Some of that may have been due to broader concerns about the pace of AI adoption. However, on Jan. 5, ANET stock got a bullish upgrade from Piper Sandler.

The firm upgraded the stock to Overweight from Neutral and raised its price target to $159 from $145. That price target is slightly below the consensus price of $164.44, which represents a 22% gain for ANET stock.

In a research note, the company cited its belief that 2026 would be a year of refresh for enterprise customers. Piper Sandler believes Arista is holding market share, which supports the company’s premium valuation.

Lennox International: HVAC Visibility Driving Higher Expectations

Lennox International Inc. (NYSE: LII) may seem like a contrarian play. The company is a leader in residential and commercial HVAC systems, which have faced significant macroeconomic uncertainty in recent years.

However, Lennox is managing to deliver solid year-over-year (YOY) earnings growth even though YOY revenue is soft. Analysts are forecasting 12% earnings growth in the next 12 months, which could be higher if the company gets regulatory tailwinds and a bump in revenue from maintenance that has been put off in recent years.

To be fair, analyst opinions have been mixed since the company’s October earnings report. However, there have been a few notable bright spots.

Wolfe Research and Northcoast Research each upgraded the stock. And Barclays maintained its rating and has a $680 price target for LII stock. That’s down from its prior target of $730. However, it’s still 14% above the consensus target, which is 14% above the stock’s price as of this writing.

Deckers Outdoor: Brand Power Driving Earnings Surprises

Many retail stocks were market laggards in 2025, and Deckers Outdoor Corp. (NYSE: DECK) was no exception. DECK stock was down nearly 50% in 2025. However, the sell-off isn’t supported by the company’s earnings reports, which continue to show strong YOY growth.

Deckers has shown how brand strength translates into revenue momentum. The company’s UGG and HOKA brands have delivered consistent demand, allowing Deckers to beat expectations and force analysts to revise earnings higher. That includes Stifel Nicolas, which upgraded the stock in November.

Investors will get a better look at DECK stock when the company reports earnings at the end of January. However, before then, the stock may get a lift when the U.S. Supreme Court delivers its ruling on the legality of the Trump administration tariffs. If the tariffs are struck down, Decker would be one of the biggest winners.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "3 Stocks With Analyst Revisions That Could Drive Earnings Surprises" first appeared on MarketBeat.