Bet on these stocks to beat the Street with earnings season about to kick off, says Bank of America

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The outlook for this earnings season looks bleak, but Bank of America thinks there are some companies that can still deliver upside surprises.

Analysts on average expect S & P 500 earnings fell 7.2% during the second quarter from the year-earlier period, according to FactSet. If that's the case, it would mark the biggest year-over-year profit decline for the benchmark since the second quarter of 2020 — when earnings plunged 31.6%. The season kicks off this week, with banking giants JPMorgan Chase , Wells Fargo and Citigroup set to report. Delta Air Lines and Pepsico are also on deck.

The stock has been on fire this year, as the Instagram parent cuts costs and gains momentum from the artificial intelligence craze. In 2023, the stock has more than doubled, climbing 144%. Recently, Meta has also gotten a boost after launching Threads, a rival app to Twitter. Since its release last week, Threads has attracted more than 100 million users. Meta is slated to report second-quarter earnings on July 26. SolarEdge also made the cut. The solar stock is down more than 6% year to date.

 

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