3 Stocks to Buy Ahead of the Upcoming Earnings Season

Key Points

• After a steep sell-off and lowered guidance, UNH stock is showing technical signs of bottoming; a strong earnings report on July 15 could trigger a rebound toward analysts’ 38% upside target.
• Despite leadership controversies and slowing EV demand, Tesla’s upcoming earnings on July 23 may offer clarity, with shares trading near critical technical support and consensus valuations.
• NFLX stock is consolidating after a major run-up, but consistent 22% earnings growth and a possible stock split following its July 17 report could drive renewed momentum.

Next week marks the beginning of another earnings season. This is a time when stocks can move sharply as investors process and act on a company’s results and guidance.

However, experienced investors know that the time to act is frequently before a company reports. This is particularly true when you believe a company is likely to deliver strong results and/or guidance. Taking this active approach positions them for the strong gains that may occur in the days and weeks after the company releases earnings.

This quarter, there are three stocks that investors may want to consider buying before the companies report earnings. Two of these companies are beaten down, but the sell-off is likely overdone. Another has been one of the best consumer discretionary stocks to own in the last three years and shows no signs of slowing down.

The Sell-Off in UNH Stock May Be Ready to Reverse

The problems of UnitedHealth Group Inc. NYSE: UNH have been discussed in detail. They certainly warranted the steep 48% pullback in UNH stock over the past three months. It didn’t help that the company missed on the top and bottom lines and lowered guidance in its first quarter earnings report in April.

However, the chart is showing that UNH stock formed a clear bottom in the middle of May. But the stock has been consolidating since then with a slightly bullish conviction. Investors should be eyeing an area of resistance around $325, which corresponds to the stock’s 50-day simple moving average (SMA).

That catalyst could come from the company’s upcoming earnings report on July 15. A beat-and-raise quarter would support the analysts’ Moderate Buy rating and $415.57 consensus price target, which is a 38% increase from its close on July 8. Notably, while many analysts have downgraded UNH stock since its last earnings report, JPMorgan Chase & Co. NYSE: JPM raised its price target to $418 from $405.

Tesla’s Biggest Strength Continues to Be Its Biggest Weakness

Tesla Inc. NASDAQ: TSLA stock has been on a roller coaster ride in 2025. That’s not new to long-time shareholders. However, it’s a reminder that the company’s greatest asset (i.e., the visionary leadership of Elon Musk) is also its greatest weakness.

That’s because investors sold the stock (and, in some cases, their Tesla vehicles) in protest of Musk’s involvement with the Trump administration. They also felt that the chief executive officer (CEO) wasn’t spending enough time on the business.

The reality is less clear. Tesla remains a leading player in the global electric vehicle market. However, demand is noticeably slowing, especially in China. That creates a challenge for TSLA stock. Despite the excitement around Tesla’s robotics and autonomous driving ventures, its EV business continues to be the main source of revenue and profit.

Tesla stock is trading just below the consensus price of analysts that report to MarketBeat. It’s also trading right around its 50-day SMA, which has acted as both support and resistance for the stock at different times. Ratings and price targets are all over the map, but the company’s earnings on July 23 should bring some short-term clarity.

NFLX Stock Is Chilling, But Maybe Not for Long

After a strong run-up after last quarter’s strong earnings report, Netflix Inc. NASDAQ: NFLX stock is taking a breather. That’s not to say that the stock is giving off bearish vibes. It just looks like buyers are a little exhausted and looking for a reason to move the stock higher.

That reason may come on July 17 when Netflix reports earnings. Some analysts believe there’s limited upside to NFLX stock at its current level. However, similar remarks were made when the stock was trading right around $1,000. If the company continues to deliver earnings growth around the 22% that analysts are forecasting, there’s no reason to believe the stock can’t push higher.

Plus, although the company has not made it a priority, the stock is trading at a level where a stock split is a possibility. The company has split its stock twice, but not since a 7-for-1 split in 2015. For now, the company is focusing on content creation and international growth. However, at a price of over $1,200 per share, it will continue to be a source of speculation.