Earnings season often acts as a catalyst for sharp stock price movements, as investors react to fresh financial data and updated guidance.
With second-quarter results rolling in, the market is already showing signs of strength – roughly 12% of S&P 500 constituents have reported so far, and a striking 85% have delivered earnings that exceeded analyst expectations.
This upbeat start has set the tone for a potentially volatile week ahead, especially for companies with high options activity and recent analyst upgrades.
That said, here are three globally renowned stocks that appear primed for notable swings following their upcoming earnings reports.
Chipotle Mexican Grill Inc (NYSE: CMG)
Chipotle is scheduled to release its Q2 results on Wednesday, and options market data suggests a potential 6% move in either direction.
The burrito chain has struggled in 2025, with shares down nearly 13% year-to-date, but analysts are optimistic about a turnaround in the second half.
BMO recently upgraded the CMG shares, citing expectations for accelerating same-store sales and margin improvement.
In Q2, the American chain of fast-casual restaurants is expected to grow its revenue by 4.4% to $3.1 billion albeit with a 5.9% decline in earnings to 32 cents a share.
Investors will be watching closely to see if Chipotle’s digital and expansion strategies can offset inflationary pressures and soft comps.
Southwest Airlines Co (NYSE: LUV)
Southwest Airlines will also report its Q2 earnings on Wednesday, with a conference call scheduled for Thursday.
LUV shares have already rallied a whopping 50% over the past three months – but Deutsche Bank remains convinced they have more room to the upside.
In its latest report, the investment firm cited Southwest’s board-level changes and operational initiatives aimed at improving shareholder returns for the bullish view.
The airline is expected generate $7.3 billion in its fiscal second quarter and earn 52 cents a share.
Despite margin pressures from rising labor costs and flat unit revenue, LUV’s refreshed leadership and strategic focus on ROIC improvement have sparked renewed investor interest. A 5% post-earnings move is anticipated.
Charter Communications Inc (NASDAQ: CHTR)
Charter Communications is set to announce its Q2 financial results on Friday, and options traders are pricing in a 7% post-release swing.
CHTR shares are currently up more than 20% versus their April low but experts are increasingly bullish following news of its planned merger with Cox Communications – expected to close in 2026.
Loop Capital analysts recently raised their price target on Charter stock to $510, citing the deal’s potential to reduce debt and enhance scale.
In Q2, the American telecommunications and mass media firm is expected to earn $10.05 per share on $13.7 billion in revenue. Investors will be watching for updates on its Life Unlimited rebrand and rural broadband expansion.
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