- Q2 earnings season is in full swing.
- Some stocks are soaring, while others are plummeting.
- Discover 10 undervalued opportunities with earnings reports coming soon.
Earnings season is gathering pace in the US. After the major banks, including , , , , and , reported on July 14, attention now shifts to Big Tech. Alphabet and Tesla report on July 22, followed by Microsoft and Meta on July 29, with Amazon and Apple scheduled for July 30.
This reporting season carries added significance. According to FactSet, S&P 500 companies are expected to deliver earnings growth of 23.6% year over year, marking a second consecutive quarter of growth above 20%. Beyond the headline figures, investors will be looking for evidence that the technology giants are generating meaningful returns from their massive AI investments.
With the five largest hyperscalers expected to spend roughly $700 billion on AI infrastructure this year, the focus has shifted from spending plans to monetization.
The macro backdrop also adds another layer of importance. This is the first earnings season since the end of the Iran conflict, which had clouded corporate outlooks during first-quarter reporting. Guidance for the second half of the year will therefore be closely watched, particularly as markets remain heavily positioned for the AI-driven rally to continue.
Against that backdrop, investors may benefit from looking beyond the highest-profile names and focusing on large-cap US stocks that already combine attractive valuations with strong financial fundamentals ahead of their earnings releases.
These Undervalued Stocks Could Surprise This Earnings Season
Using the Investing.com stock screener, we searched for US stocks that met the following criteria:
- Market capitalization greater than $10 billion
- Earnings release by the end of July
- Upside potential of more than 30% based on InvestingPro’s Fair Value
- Upside potential of more than 30% based on the average analyst price target
- Financial health score greater than 2.5/5
This research identified 9 opportunities.
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Specifically, these US stocks offer upside potential ranging from 31.6% to 61.5% based on InvestingPro Fair Value estimates and 31.3% to 59% based on analyst price targets.
Among them are:
- is the world’s largest miner by market capitalization, making it well positioned to benefit from renewed strength in gold prices. The company is expected to report second-quarter earnings on July 22 or 23 after posting a strong first quarter, with adjusted EPS of $2.90 topping expectations and revenue climbing 45.8% to $7.3 billion. While another solid quarter is anticipated, expectations are already high, leaving less room for upside surprises.
- , which operates the KFC and Pizza Hut brands in China, reports second-quarter results on July 30. In the previous quarter, the company delivered EPS in line with expectations while revenue rose 9.7% year over year and slightly exceeded forecasts. Its defensive business model, dividend yield of around 2%, and attractive valuation make it a noteworthy candidate ahead of earnings.
That said, several other companies on the list offer even more compelling combinations of valuation, financial quality, and upside potential.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.
