As we dive deeper into the second-quarter earnings season, Wall Street’s optimism is palpable—and for good reason. According to FactSet, an impressive 80% of S&P 500 companies that have reported so far have beaten earnings and revenue expectations, surpassing the five-year average of 78%. Even more compelling is the S&P 500’s sustained net profit margin above 12% for the fifth consecutive quarter, a signal that corporate profitability remains robust despite ongoing economic uncertainties. Analysts are increasingly confident that these margins will continue to improve in the latter half of the year, setting the stage for potential market outperformance.
But what does this mean for investors and advisors looking to capitalize on this momentum? Let’s break down some of the standout names poised for notable moves post-earnings, and explore actionable insights that go beyond the headlines.
Roblox (RBLX): The Gaming Giant Set to Level Up
Roblox has been a standout performer, surging over 105% year-to-date. The company’s upcoming earnings report could catalyze an 11.3% jump in shares, according to options market forecasts. Wedbush analyst Alicia Reese calls Roblox “the most compelling growth opportunity in the video game sector,” citing its expanding portfolio of games and innovative profit drivers. This bullish sentiment is echoed by 24 out of 34 analysts rating it a strong buy or buy (LSEG data).
What makes Roblox particularly intriguing is its role in the evolving metaverse economy. Beyond gaming, Roblox is building a digital ecosystem where users create, socialize, and transact—an early glimpse into the future of digital interaction and commerce. For investors, this means exposure not just to gaming growth, but to the broader digital transformation reshaping multiple industries.
Roku (ROKU): Streaming’s Underdog with Upside Potential
Roku’s stock has climbed over 25% this year, with analysts predicting another 9.5% gain following earnings. JPMorgan’s recent upgrade and price target hike to $100 per share underscore confidence in Roku’s resilience. Cory Carpenter from JPMorgan highlights stable ad spend and easing China tariff pressures as key drivers.
Interestingly, Roku’s conservative guidance—particularly around its Frndly acquisition—may have underestimated its growth potential. Investors should watch for upside surprises in Roku’s revenue and margin outlook, as the company leverages its platform to capture increasing ad dollars in a competitive streaming landscape.
Beyond Meat (BYND) and Carvana (CVNA): High-Flyers with Room to Run
Beyond Meat, up nearly 109% this year, and Carvana, rallying about 65%, are expected to see some of the largest post-earnings moves—18.3% and 11.6%, respectively. Carvana’s recent upgrade to outperform by Oppenheimer, with a nearly 40% upside target, reflects a transformed business model that is now generating meaningful cash flow and scaling efficiently.
For investors, these names highlight two important themes: the growing consumer demand for sustainable alternatives (Beyond Meat) and the digital disruption of traditional industries like used car retail (Carvana). Both companies have made significant operational strides, which should translate into sustained earnings growth.
What’s Next? Strategic Moves for Investors and Advisors
-
Focus on Earnings Quality, Not Just Beat Rates: While positive surprises are encouraging, dig deeper into the quality of earnings—look for companies with strong free cash flow, improving margins, and sustainable competitive advantages. Roblox and Carvana exemplify this.
-
Leverage Options Market Signals: The options market often anticipates volatility and directional moves ahead of earnings. Investors should consider using options strategies to hedge or capitalize on expected swings, especially with high-momentum stocks like Roku and Beyond Meat.
-
Diversify Exposure to Structural Growth Trends: The metaverse, streaming, sustainable products, and digital retail disruption are not fads—they represent structural shifts. Allocating capital to companies leading these trends can provide asymmetric upside potential.
-
Stay Alert to Macro and Regulatory Developments: Tariff de-escalations and regulatory changes can materially impact earnings and valuations, as seen with Roku. Advisors should continuously monitor these factors to adjust positioning accordingly.
Unique Insight: The Rise of Earnings Season as a Tactical Play
A recent study by Goldman Sachs revealed that stocks with positive earnings surprises tend to outperform the market by an average of 3.5% in the two weeks following their reports. This creates a tactical window for nimble investors to capitalize on momentum. However, the key is to identify companies with sustainable growth drivers rather than one-off beats.
At Extreme Investor Network, we believe the current earnings season is not just a quarterly event but a strategic opportunity to recalibrate portfolios toward innovation-led growth. The convergence of strong corporate profitability, evolving consumer behaviors, and technological disruption is setting the stage for a dynamic market environment.
In Summary
The second-quarter earnings season is painting a picture of resilience and opportunity. Stocks like Roblox, Roku, Beyond Meat, and Carvana are not only delivering impressive numbers but are also positioned at the forefront of transformative trends. Investors and advisors who move beyond the surface, leverage market signals, and focus on structural growth themes stand to gain the most in this evolving landscape.
Stay tuned to Extreme Investor Network for deeper dives, exclusive insights, and actionable strategies that keep you ahead of the curve in today’s fast-moving markets.
Source: These stocks are expected to have the biggest moves this week on earnings: Carvana, Roblox and more