3 Stocks to Buy BEFORE They Report Earnings

Stocks to buy

The earnings season can be an exciting time for investors. While a few can be disappointing, many others can generate solid gains for you. Since it is impossible to time the market, investors should identify companies that have a solid history of beating market expectations. When they do this, the stock often rallies. In this earnings season, here are the three stocks to buy before earnings this week. With a high chance of beating the projections, these stocks could generate strong returns for you. 

Li Auto (LI)

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A hot electric vehicle (EV) stock today, Li Auto (NASDAQ:LI) has shown impressive strength and resilience throughout the year. While other Chinese EV makers were struggling, Li Auto was shining. The company has been reporting impressive delivery numbers month after month, and its quarterly results are proof it is moving in the right direction.

In the second quarter, Li Auto reported 86,533 car deliveries and aimed at deliveries between 100,000 and 103,000 for the third quarter, representing a 277% to 288% rise from the second quarter. So far, the company has achieved the projections and delivered 105,108 units for the third quarter. That will also impact the financials since the management projected revenue between $4.46 billion and $4.59 billion for the quarter. I believe it will beat expectations in the quarterly results set to be announced on Nov 9. 

The company’s EPS stood at 36 cents in the second quarter and the revenue rose 228% year-over-year to hit $3.95 billion. 

Li Auto also set a target to deliver over 40,000 vehicles each month in the final quarter of the year, and it has already achieved the same for October with 40,422 cars. This is one Chinese EV maker that has a long way to go, and as it continues to expand its fleet, there will be a lot more to look forward to. 

Trading at $36 today, the stock is up 73% year-to-date but still looks undervalued to me. It has the potential to double your money in 2024. If it beats expectations in the quarterly results, you can expect the stock to soar higher in the coming weeks. It is doing better than all the competitors in the industry and is one EV stock you shouldn’t ignore. 

Walt Disney (DIS)

Disney (NYSE:DIS) has had a few rough days, and its immediate future does look uncertain, but I find the bigger picture much more attractive. The company’s biggest advantage is its diversified business, which ensures revenue generation. However, management is trying its best to make the streaming business profitable, and there is little progress on that front. It reported a loss of $512 million in the third quarter while the revenue increased to $5.5 billion, up 9% year over year. 

On the other hand, Disney Networks and Parks saw a 13% revenue increase. It saw a 17% increase in the theme park admission revenue, and most of it was from the increased attendance. I think the holiday season could benefit this segment.

DIS stock has dropped 4% year-to-date and looks very cheap to me. It is trading at $85 right now and is much lower than the 52-week high of $118. The world’s largest entertainment company has had to go through more than anyone can imagine. But it will bounce back, and this is when investors will be able to make the most of their money. If the company manages to report a lower loss, we could see the stock move further, but it will need a few more months to recover fully. 

The hopes for Disney are high, and until the management achieves its goals, the stock is available for cheap. The company is set to report results on November 8. Wall Street Analysts have mixed opinions about the stock, with an Evercore ISI analyst lowering the price target to $100 while a Seaport Research analyst raised it to $96. The upside is certain from here, but its timeline remains uncertain. 

Uber Technologies (UBER)

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I expect Uber Technologies (NYSE:UBER) to report strong quarterly results this week and shatter the sales record with more people using its services. That will lead to an upside in the stock price, now trading at $47. While the stock is already up 88% year-to-date and very close to the 52-week high of $49, I think there is ample upside potential from here. Wall Street expects Uber to earn $0.13 a share and turn profitable from a loss in the prior year period. 

It also expects the revenue to come in at $9.47 billion, a 13.5% annual jump, and if it does report these strong numbers, that will make the highest quarterly sales total ever for the business. One solid reason to invest in Uber is its strong presence in the field of transportation and delivery. It is a highly relevant business that will continue to stay in demand in the future as well. 

Its success was visible in the second quarter earnings, which showcased about a 14% revenue hike year over year and a net income of $394 million, leading to an impressive growth rate. Even its food delivery segment, Uber Eats, has been showing strong momentum. It reported a 12% rise in gross delivery bookings and generated $15.6 billion. The upcoming results will only solidify the company’s dominating position in the industry. UBER stock will hit a new 52-week high this week, and buying it before the results is a very smart move. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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