We’re into the second week of the earnings season, and some of the top banking companies and other big guns have reported results. The start of the season looks good, and every investor hopes to see the same momentum as their favorite companies report. The earnings season also sees a lot of volatility in the market due to the reaction to the results, and if you want to make the most of this volatility, you want to find stocks to buy before earnings reports are filed.
I believe these some of the biggest and most well-known companies will keep up their winning ways and report strong growth, taking the stocks higher. Since the market reaction to the results is temporary and could sometimes be extreme, it is important to make the most of the dip and pounce on these high-quality stocks in time.
These are excellent businesses with the potential to grow your money in the coming quarters. With that in mind, let’s look at the seven stocks.
Nvidia (NVDA)
If you are only buying one stock before the earnings, it should be Nvidia (NASDAQ:NVDA). The tech giant is growing at an incredible rate, and the company’s results often take the market higher. NVDA stock often jumps following its earnings reports and the same could happen again.
It is expected that the company will beat expectations and meet its revenue estimate of $28 billion. Nvidia hasn’t announced an earnings release date, but Nasdaq estimates it will report on or about August 28.
Additionally, Goldman Sachs has reported that Nvidia could show how their customers make money using AI chips and this could be a game-changer for the business. As one of the largest market shareholders in the AI segment, Nvidia is here to stay and the sooner you buy the stock, the bigger your profits.
I do not think the tighter restrictions on China will impact Nvidia’s business. There could be a temporary slump, but that’s all that will be, temporary. Trading at $113, the stock is up 128% year-to-date. Buy NVDA before it skyrockets again.
Amazon (AMZN)
I am certain Amazon (NASDAQ:AMZN) will report blockbuster earnings this season. The company, which announced it will post earnings on August 1, is on a roll and has had an excellent 2024. The earnings, driven by cloud services and advertising will see a strong jump and could take the stock higher.
Amazon recently held a Prime Day event, which saw $14.2 billion in sales in two days. This led to an 11% jump in the company’s e-commerce market, which shows its strength as an e-commerce player.
However, the majority of its revenue comes from cloud computing, and this segment will continue to report impressive growth as companies transition towards the cloud. As one of the best tech stocks to own, Amazon has dominated the market over the past few months.
Up 20% so far in 2024, AMZN stock is exchanging hands for $182 and is a solid bet below $200. This stock is going beyond $200 very soon and is one of the best stocks to buy before earnings.
JMP Securities has a buy rating for the stock and a price target of $225, while Morgan Stanley has an overweight rating and a price target of $240 per share.
Eli Lilly (LLY)
Eli Lilly (NYSE:LLY) is a pharmacy company raking in big money through its weight loss drugs. As one of the top industry players, Eli Lilly’s weight loss drugs, Zepbound and Mounjaro, generate the majority of its revenue. The obesity industry is lucrative and the demand for its drugs is only going to rise. To keep up with this, the company has already invested $9 billion in a new manufacturing facility.
Eli Lilly reports on August 8 and could beat expectations. In the previous quarter, the company saw a revenue of $1.8 billion from Mounjaro and $517 million from Zepbound. It has also received the FDA approval for its Alzheimer’s drug. We could see Eli Lilly soar higher from here and the results could give it a strong push. It is one of the best stocks to buy before earnings.
Trading for $804, the stock is up 38% YTD and 76% in the past 12 months. This is one stock to buy before it inches closer to $1,000. The lofty stock price also makes it an ideal stock split candidate.
Walmart (WMT)
Up 32% so far this year, Walmart (NYSE:WMT) stock is trading for $70 as of writing and is on an impressive rally. The biggest grocery and retail giant has thousands of locations, which makes it easier for customers to pop into a store quickly. It is also known for offering products at low prices. The company saw a 6% revenue growth in the first quarter and announced a 9% dividend hike.
Walmart is investing in automation and e-commerce to remain relevant. The company saw a 22% jump in e-commerce sales in the recent quarter. To maintain market dominance, Walmart is also opening five distribution centers for fresh food across the country. By 2026, management aims to have about two-thirds of the stores achieve some sort of automation.
I believe Walmart will continue to display strength in the competitive industry and if you are a passive income investor, this stock will not disappoint you. BMO analyst has a price target of $80 for the stock and enjoys a dividend yield of 1.2%. Walmart plans to report earnings before the opening bell August 15.
McDonald’s (MCD)
A long-term restaurant stock, McDonald’s (NYSE:MCD) will report results before the market opens on July 29. The company hasn’t had a good 2024 and the stock is down 15% YTD.
Trading at $252, the stock is a buy in the dip. The company reported flat revenue in the previous quarter, which led to the downfall of the stock. However, the company is not the one to sit back and bleed. In response to customer complaints about higher prices, it introduced a value $5 meal, which is a huge hit and it is being extended.
The company has suffered more than it deserved due to low consumer spending, high interest rates, and price hikes. However, this will pass and MCD will remain a solid stock for the long term. Such issues are temporary and it is hard to imagine that McDonald’s doesn’t have the resources to rebuild from here. It has been in a similar situation in the past and has handled it well.
The company can bounce back and any dip is a chance to buy. Additionally, it also enjoys a dividend yield of 2.6% and has a history of increasing dividends for 48 consecutive years.
Palantir Technologies (PLTR)
The smartest AI stock to buy right now, Palantir Technologies (NYSE:PLTR) has been on a rally all year. Up 58% in 2024, PLTR stock is exchanging hands for $26 and is a leader in the AI space.
If you think Nvidia is too expensive, buy PLTR and hold for the long term. The company reported terrific results for the first quarter with a 74% year-over-year jump in remaining performance obligations. It will be looking for similar performance when Palantir reports earnings August 5 after the market closes.
The company saw a 21% jump in revenue in the first quarter to $634 million, but management issued a lower-than-expected guidance. It is now aiming for revenue in the range of $649 million to $653 million. I believe Palantir will beat expectations with a strong increase in its commercial client count. Its deal momentum has impressed the market and the company has proved its strength in the competitive industry.
Its growing client base, profitability, and exceptional product make it one of the best tech companies to own.
DraftKings (DKNG)
Online sports betting platform DraftKings (NASDAQ:DKNG) holds about 30% market share in the U.S. and operates in 26 states. With the growing popularity of sports betting, the company has become highly popular, and this is reflected in its revenue growth.
As states continue to legalize online betting, DraftKings will have bigger expansion opportunities. The company is also aiming for expansion in its current markets and is planning to launch a sports betting app in Washington D.C.
Fundamentally, DraftKings has shown strong progress with a 53% year-over-year jump in revenue in the first quarter. It lifted the annual guidance and is now aiming for revenue in a range from $4.8 billion to $5 billion. The company is steadily moving from losses to profit, and this will change its narrative.
A solid long-term play, DKNG is a bet you won’t regret. Exchanging hands for $36, DKNG stock is up 3% in 2024 and is a buy before it reports earnings on August 1.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA, AMZN and PLTR.