As the second-quarter earnings season kicks into high gear, savvy investors should be tuning in closely—not just to the headline giants, but to a select group of under-the-radar stocks that Wall Street might be sleeping on. Jefferies recently spotlighted some intriguing opportunities that could deliver outsized returns in the near term, and at Extreme Investor Network, we’re diving deeper to give you the actionable insights others miss.
Earnings Season: More Than Just the Usual Suspects
This week alone, a staggering 30% of the S&P 500—151 companies—are set to report earnings, including nine Dow Jones Industrial Average stalwarts. The “Magnificent Seven” tech giants will dominate headlines, but the true alpha may come from companies flying under the radar. Jefferies’ analysts, armed with channel checks, alternative data, and industry intel, have identified four standout names poised for potential upside surprises. Here’s what you need to know—and what you should do with this knowledge.
1. Spotify (SPOT): Streaming Upbeat Despite Margin Pressures
Spotify has already surged 54% year-to-date, yet Jefferies’ James Heaney sees another 25% upside, targeting $845 per share. Why? While Spotify’s gross margin growth has slowed due to investments in video podcasts, its subscriber growth remains robust. The firm anticipates a subscriber beat in Q2 2025, forecasting an addition of over 5 million users.
Investor takeaway: Don’t be deterred by margin pressure if top-line growth remains strong. Spotify’s strategic pivot into video podcasts might dampen short-term profitability but positions it for long-term market leadership in audio-visual content. For advisors, this suggests a tactical overweight in growth names with evolving business models—especially those leveraging content diversification.
2. Boeing (BA): Aviation’s Takeoff Continues
Boeing’s stock has already climbed 32% this year, but Jefferies’ Sheila Kahyaoglu estimates a further 13% gain based on production ramp-ups. With an expected 413 total 737 deliveries in 2025 and a sustained production rate of 38 aircraft per month, each additional MAX plane could add $10 million in free cash flow.
Investor takeaway: Boeing’s resurgence underscores a broader industrial recovery and supply chain normalization. Investors should watch for sustained production momentum and free cash flow growth as key metrics. This also signals a potential shift in portfolio allocations toward cyclical industrials benefiting from post-pandemic demand rebounds.
3. Clorox (CLX): Defensive Play with Value Upside
Clorox shares have dropped 19% in 2025, trading at a 2-year forward P/E of 19x—well below its 10-year average of 24x. Jefferies expects a broad-based earnings beat in the fiscal fourth quarter, driven by shipment surges as retailers prepare for Clorox’s July ERP transition.
Investor takeaway: Clorox represents a classic value opportunity in a defensive sector. The sell-off appears overdone relative to fundamentals, presenting a potential entry point for income-focused investors. Advisors should consider adding Clorox as a portfolio stabilizer amid market volatility, especially given its pricing power in consumer staples.
4. LPL Financial & Fair Isaac: Financial and Tech Insights
Jefferies also flagged LPL Financial and Fair Isaac as names to watch. LPL, a key player in wealth management, stands to benefit from rising market volatility that typically drives advisory demand. Fair Isaac, known for its credit scoring and analytics, is well-positioned amid growing fintech adoption and data-driven lending trends.
Investor takeaway: Both firms highlight the intersection of finance and technology—a sector ripe for innovation-led growth. Investors should monitor regulatory developments and fintech adoption rates, which will be critical drivers in the coming quarters.
What’s Next? Strategic Moves for Investors and Advisors
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Expand Your Earnings Radar: Don’t just focus on headline tech giants. Look for companies with strong operational catalysts and undervalued multiples—Spotify’s subscriber growth and Clorox’s ERP-driven shipment surge are prime examples.
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Balance Growth and Value: The market is signaling a nuanced approach—growth names with evolving models (Spotify) alongside beaten-down value stocks with stable cash flows (Clorox) can offer portfolio resilience.
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Monitor Supply Chain and Production Trends: Boeing’s ramp-up is a bellwether for industrial recovery. Investors should track similar supply-side dynamics in other sectors for early signals of earnings momentum.
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Leverage Alternative Data: Jefferies’ use of channel checks and alt data underscores the growing importance of real-time, non-traditional information sources. Advisors should incorporate these insights to anticipate market moves before traditional earnings reports.
Unique Insight: The Hidden Power of ERP Transitions
Clorox’s ERP (Enterprise Resource Planning) system upgrade is a subtle but powerful earnings catalyst. Such transitions often lead to short-term shipment spikes as companies build inventory ahead of system changes. This is a pattern rarely discussed in mainstream financial coverage but can be a critical signal for investors seeking earnings surprises. Watch for similar ERP transitions in other sectors as potential alpha opportunities.
Final Word
With nearly one-third of the S&P 500 reporting this week, the earnings season is shaping up to be a pivotal moment for portfolio positioning. At Extreme Investor Network, we believe the key to outperforming lies in identifying overlooked winners and understanding the nuanced operational drivers behind earnings beats. Spotify, Boeing, Clorox, LPL Financial, and Fair Isaac are not just names on a list—they represent distinct investment themes that savvy investors must act on now.
Stay ahead of the curve: diversify your focus, leverage alternative data, and be ready to pivot as earnings season unfolds. The market’s next big winners may not be the ones shouting the loudest—but those with the strongest fundamental stories and strategic catalysts.
Sources: Jefferies Research, Bloomberg, FactSet, and company earnings guidance reports.
Source: Stocks Jefferies’ analysts like going into earnings against the Wall Street consensus