Stocks to buy now, before they report earnings

Top Stocks to Watch Before Earnings Reports That Could Impact Investor Returns

Picking stocks before earnings season is kind of like picking your team for a big game—you want players who are already strong but also ready to surprise everyone. Getting the right mix can make a big difference for your investment “scoreboard.”

Why Earnings Reports Matter for Investors

When companies report their earnings, it’s like opening the results envelope on a game show. Will they beat expectations, or will they disappoint? These moments can send stock prices up or down fast, which is why investors pay close attention.

Bank of America and CNBC Pro recently pointed out several companies they think are good bets before and after their earnings come out. These include Spotify, RB Global, Ralph Lauren, DoorDash, and Cisco.

Reasons to Be Positive (Bullish)

  • Spotify: Analysts feel good about Spotify’s steady growth and new ideas, especially with its push into AI. The company’s revenue is expected to speed up as currency problems calm down. Spotify’s shares jumped 9% in July, showing some early excitement.
  • RB Global: This company, which sells used vehicles and equipment online, has room to grow. Experts think that even with higher fuel costs, RB Global’s earnings could get better in 2025 and 2026 as the used equipment market improves and the company wins new customers.
  • Ralph Lauren: Bank of America thinks this clothing company can keep beating expectations. Strong sales and better profit margins are expected, especially with more favorable tariffs helping out.
  • DoorDash: Even though the stock hasn’t done great this year, analysts see a chance for a comeback as the company gets better at controlling expenses and improving profits.
  • Cisco: Investors are watching for continued strength in AI orders and improvements in revenue and profit margins. Cisco is also expected to give guidance for next year, which could help boost confidence.
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Reasons to Be Careful (Bearish)

  • Spotify: While there’s excitement about AI, it’s still early days. If Spotify’s new tech doesn’t pay off, growth could slow down.
  • RB Global: Higher fuel prices and a slow recovery in the used equipment market could hold the company back for a while.
  • Ralph Lauren: Some worry that sales could slow down, and if tariffs or costs go up again, profits might take a hit.
  • DoorDash: Competition is fierce in food delivery, and if DoorDash can’t keep up with rivals or control costs, the stock could struggle.
  • Cisco: Rising memory costs and a shift toward cloud infrastructure could squeeze profit margins. If demand for AI slows, growth could be weaker than hoped.

What the Numbers Say

Historically, stocks that beat earnings expectations see an average price jump of about 2.5% on the day after results, according to a Nasdaq study. But stocks that miss can drop just as quickly. This shows why picking the right stocks ahead of earnings is so important.

Investor Takeaway

  • Watch earnings dates closely and know when your stocks are reporting.
  • Consider both the upside (growth, new products, strong sectors) and the risks (competition, costs, market slowdowns).
  • Look for companies with a track record of beating expectations and signs of steady growth.
  • Diversify across sectors like tech (Spotify, Cisco), retail (Ralph Lauren), and services (DoorDash, RB Global) to help manage risk.
  • Stay updated—news and numbers can change quickly around earnings season. Use reputable sources for the latest info.

For the full original report, see CNBC

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