The 5 Most Important Stocks to Watch During Q2 Earnings Season
While thousands of companies will report second quarter earnings in the next few weeks, there are a handful of companies that are “must-see” earnings reports. These are some of the best known, and most popular, companies.
All eyes will be on these five for a variety of reasons. Several are part of the Magnificent 7. Many investors own those 7 large cap stocks. But several others are simply popular growth stocks that have hit new all-time highs in 2024.
Q2’s Must-See Earnings Reports
What will they say about the US, and global, economies? Is the recession here or will the Fed achieve a soft landing?
Several companies are booming thanks to the AI revolution. Will AI still be a driver of earnings and sales in Q2?
While there are a lot of companies that people will be tuning into during this earnings season, these 5 are the most important of all. You won’t want to miss them.
The 5 Most Important Stocks to Watch During Q2 Earnings Season
1. Apple Inc. (AAPL) has surprised on earnings 5 quarters in a row. In fact, it has a great earnings surprise track record with just 1 miss in the last 5 years and that was in early 2023.
Apple shares are up 19% year-to-date and are hitting all-time highs. Yet Apple trades at 35x forward earnings. Is Apple too hot to handle?
2. Eli Lilly and Co. (LLY) has beat 4 quarters in a row. That is a turnaround from a string of misses in 2021 and 2022.
Eli Lilly has been one of the hottest stocks on the Street. It is up 55.4% year-to-date. Eli Lilly is trading with a high valuation, as it has a forward P/E of 70. Will Eli Lilly continue to execute?
3. Chipotle Mexican Grill, Inc. (CMG) has beat 5 quarters in a row. It also has a solid 5-year earnings surprise track record, with just 3 misses during that time. That is impressive given the pandemic.
Shares of Chipotle are up 21% year-to-date and hit new all-time highs. However, Chipotle isn’t cheap. It trades with a forward P/E of 51. Can Chipotle continue with the 20%+ earnings growth this quarter?
4. Microsoft Corp. (MSFT) has a great earnings surprise record. Microsoft has beat 7 quarters in a row. It has only missed once in the last 5 years and it was in 2022.
Microsoft shares hit new all-time highs in 2024. It is up 18% year-to-date. Microsoft isn’t cheap, however. It trades at 34x forward earnings. Will AI prove to be another catalyst for Microsoft in Q2?
5. Super Micro Computer, Inc. (SMCI) has an excellent earnings surprise track record. It’s beat 4 quarters in a row. Super Micro Computer has only missed once since 2020.
Shares of Super Micro Computer have been red-hot in 2024, gaining 187% year-to-date on the AI trade. It reports earnings in Aug 2024. Super Micro is trading at 26x. Is Super Micro Computer a good bellwether of what’s to come with the other AI stocks this earnings season?
[In full disclosure, Tracey owns shares of MSFT in her personal portfolio.]
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report