Big Rallies Brewing? 3 Analyst Favorites to Watch Closely

Key Points

• Three companies recently reporting earnings saw noticeable spikes in share price, drawing investor interest.
• SkyWater Technology, Emergent BioSolutions, and Backblaze enjoy analyst support and have room for further upside.
• These firms represent critical industries including U.S. semiconductor manufacturing, public health, and cloud storage.

While timing a rally is notoriously tricky, catalyzing events like earnings reports can sometimes be helpful landmarks for investors.

Companies can receive a big boost on impressive results or promising news, and then it is a matter of maintaining momentum to ensure those gains aren't given back shortly after.

Below, we look at three companies that may be positioned to continue to flourish after recent price spikes, thanks to promising emerging fundamentals and strong bullish sentiment from analysts.

A Dominant Position in U.S. Semiconductor Manufacturing

SkyWater Technology Inc. NASDAQ: SKYT provides semiconductor manufacturing services. The company had what was in many ways a lackluster period for the second quarter of 2025. Reporting in early August, SkyWater revealed that losses per share widened considerably as revenue dropped by 37% year-over-year (YOY). One bright spot in SkyWater's financials was gross margin, which improved by 20 basis points YOY to 18.5%. Nonetheless, SkyWater said its results were at the upper end of its expectations.

Investors responded to the earnings news by sending SKYT shares skyrocketing by about 30% in the last month. So why the bullish response? It could be that SkyWater also announced in its report that it had completed the acquisition of a flagship manufacturing facility, Fab 25, from German semiconductor maker Infineon Technologies AG OTCMKTS: IFNNY. Fab 25 is expected to contribute at least $300 million in annual revenue and to give a big boost to EBITDA, with the impact likely emerging as early as the current quarter.

SkyWater's Fab 25 purchase will help to facilitate its multi-year supply agreement of over $1 billion and, perhaps even more importantly, positions the firm exceptionally well to deliver as changing U.S. regulations push firms toward onshore manufacturing of semiconductors and related components. Given that, it's no surprise that all three analysts reviewing SKYT shares have assigned them a Buy rating, and the rally over the last several weeks, which is already massive, could have reason to continue.

Growing International Business and Successful Expense Trimming

Life sciences firm Emergent BioSolutions Inc. NYSE: EBS is known for public health products, including NARCAN nasal spray for treatment of opioid overdose and vaccines and treatments for cholera, typhoid fever, and a range of other diseases. Emergent is coming off of a second quarter that, while yielding mixed results, nonetheless shows important advancements that could yield benefits into the future.

The company missed on revenue in the last quarter, but made notable improvements in EPS, reporting a positive figure when analysts expected a loss and beating predictions by 42 cents per share. The improvement was driven by strong NARCAN sales and, notably, cost optimization strategies and divestments, which substantially reduced expenses and allowed Emergent to launch a $50-million share repurchase program. Liquidity and net leverage are also improving.

Emergent's international medical countermeasures business is rapidly growing. The company recently secured a $65-million contract with the Ontario Ministry of Health for NARCAN and additional revenue-generating contract modifications. With all three analysts reviewing EBS shares rating them a Buy, the company has upside potential of more than 62% despite already climbing more than 21% in the past month.

Despite Mixed Earnings, a Strong Growth Trajectory and Improving Profitability Metrics

Cloud storage provider Backblaze Inc. NASDAQ: BLZE noted 16% YOY revenue improvement and a top-line beat in its latest earnings, delivered early in August 2025. The company has netted new high-ARR customers thanks to increasing demand due to AI, helping its storage revenue to surge by 29%. On the other hand, GAAP losses per share came in wider than expected.

Still, profitability metrics like adjusted EBITDA margin are improving overall, and the company's B2 OverDrive platform has launched successfully, including an early six-figure customer in the first weeks of launch. This is a positive sign that Backblaze will be able to continue to build out its infrastructure and scale its offerings. Investors will certainly keep an eye on the company's free cash flow in this process, however, as that has so far remained frustratingly negative.

With one-month gains of more than 48%, Backblaze shares seem to have lit a fire. The company has a unanimous Buy rating from all seven analysts, and a consensus price target above $10 per share would suggest an additional 31% in upside is possible.