4 Recent Earnings Winners Riding Fresh Momentum in May

Key Points

• Earnings wins in the first quarter have prompted short-term rallies in a number of stocks across sectors.
• Four companies—Porch Group, SunOpta, Tutor Perini, and SI-BONE—have fundamentals that may support additional gains going forward.
• Investors should watch momentum stocks like these closely and consider the risks of mistiming an investment before instituting a new position.

The market turbulence in 2025 has sent stocks zig-zagging up and down. Despite the unavoidable impact of political developments on share price performance, some companies have seen major gains based on a more traditional driver of motion: strong earnings reports.

Four under-the-radar companies were major earnings winners in the year's first quarter and enjoyed especially notable momentum in May.

Porch Group Surges 114% YTD on Q1 Earnings Beat, Strong Insurance Moves, and Raised 2025 Guidance

Homeowner's insurance provider Porch Group Inc. NASDAQ: PRCH is also known for its software offerings catering to inspection, mortgage, and title companies. The company posted a stellar performance on revenue and earnings per share (EPS) for the year's first quarter. Porch reported revenue of almost $105 million for the quarter, more than $25 million above expectations; EPS of 2 cents per share was a positive surprise considering that analysts predicted losses of seven cents per share.

Porch's most recent quarter is characterized by the completion of its Porch Insurance Reciprocal Exchange (PIRE). Policyholders own a reciprocal exchange, and Porch is the operator. This structure helps to reduce Porch's direct exposure to weather risks and other claims.

A second key development in the quarter was Porch's sale of its Homeowners of America Insurance Company to PIRE based on an expected surplus of $105 million as of the end of 2024.

Porch executives expect to accelerate profitability and cash flow growth in the coming years and have increased 2025 guidance. Seven out of eight analysts agree and have assigned the firm a Buy rating. With the spike in interest post-earnings, PRCH shares have climbed a whopping 114% year-to-date (YTD).

SunOpta Beats Q1 Expectations, Hikes 2025 Guidance, and Sees 48% Upside Despite Post-Earnings Rally

SunOpta Inc. NASDAQ: STKL is a plant-based food and beverage manufacturer that beat expectations on both EPS and revenue in the first quarter. The company has been firing on all cylinders this year, seeing notable gains in volume production in its aseptic and fruit snacks segments and tripling its net cash from continuing operations and reported gross margin improved from fiscal year 2024 to first-quarter 2025 by 170 basis points on solid volume growth as well.

In its earnings report, SunOpta announced it would raise the lower end of its revenue guidance and now expects growth of 9% to 11% year-over-year (YOY) compared to fiscal 2024. Adjusted EBITDA is expected to climb at an even faster pace of as much as 16% over the same period.

Although SunOpta has only been reviewed by two analysts in the last year, both provided Buy ratings. Notably, despite a jump of more than 43% in the several days after its earnings report was released, SunOpta's consensus price target of $9.50 per share still represents upside potential of nearly 48%.

Major Projects and an Earnings Beat Fuel Tutor Perini Rally

Public works construction firm Tutor Perini Corp. NYSE: TPC has been a standout in its industry this year with a YTD return of more than 45%. These gains are largely due to an enthusiastic response in May after the company beat EPS estimates by an impressive 47 cents per share. This reflected operating income growth of 34% YOY as the company's backlog nearly doubled in the first quarter.

Tutor Perini has shifted its focus toward high-margin projects, though the company has also booked an impressive array of new projects. A $1.2-billion Manhattan tunnel project is a standout, and the company has maintained a book-to-burn ratio of 1.6x. The company also has major potential projects in its pipeline, including a multibillion-dollar bus terminal replacement project in New York City.

The firm has raised its full-year 2025 guidance and expects continued growth through 2026 and 2027 as well. Analysts agree, with each of the three firms assigning a Buy rating and suggesting the company still has 13% upside potential after its recent rally.

Impressive Adoption Rates and Gross Margin Improvement Support SI-BONE's Spike

Medical device maker SI-BONE Inc. NASDAQ: SIBN reported narrower-than-expected losses per share and a revenue beat in the first quarter, sending shares spiking by 35% YTD. Expanding gross margins combined with rapid adoption of its platform represent tailwinds driving outperformance.

SI-BONE also has a strong active pipeline under development as the company is not only growing its physician user base, but seeing its users perform multiple types of procedures using its products, improving density.

All four analysts who have rated SIBN have assigned it a Buy. Together, they see an additional 20% of upside potential in the near-term.