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3 Growth Stocks to Buy Before Q2 Earnings

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Today’s episode of Full Court Finance at Zacks explores the bullish case for the market as we start August amid a strong second quarter earnings season. The episode then dives into three growth-focused stocks—Roku, Etsy, Yeti—that might be worth buying ahead of their financial releases later this week.

The final week of July featured quarterly earnings reports from the largest companies in the world, including Apple AAPL, Microsoft MSFT, and countless other technology giants. Despite a few stocks popping, Wall Street’s response was largely tepid to blowout results that highlight tech’s impressive earnings and revenue growth (also read: Is Big Tech Growth Really Decelerating?).

Some sentiment points to slowing growth and possible big tech deceleration going forward. But those are more near-term concerns with technology set to dominate our lives and the market for the foreseeable future.

That said, it won’t be shocking to see more selling in the near term given the impressive run over the last several months. Plus, the market bounced back so quickly from its mid-July pullback that another healthy recalibration could be in the cards.  

Long-term investors shouldn’t be nervous about any second quarter earnings season pullbacks or more selling to end the summer because the bull case remains strong, despite some legitimate worries. And the low interest rate environment will likely keep Wall Street chasing returns in stocks even when the Fed starts to raise rates off rock-bottom levels—the 10-year U.S. Treasury has remained below 3% for nearly all of the last ten years.

With this in mind, now appears to be a solid time to consider adding a few strong growth stocks. First up is Roku ROKU ahead of its Q2 release on Wednesday. The streaming company is poised to benefit from the continued expansion of the industry and it won’t matter who wins the streaming wars between Disney DIS, Netflix NFLX, and other players.

Etsy ETSY also reports mid-week. The company has expanded from niche e-commerce site into a huge digital retailer with a growing and diversified portfolio. Yeti’s YETI earnings are due out Thursday. The company is far more than a high-end cooler maker these days and its stock price has surged to new highs to start August.


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Apple Inc. (AAPL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Etsy, Inc. (ETSY) : Free Stock Analysis Report
 
Roku, Inc. (ROKU) : Free Stock Analysis Report
 
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
 
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Zacks Investment Research