Top 10 Stocks Best Positioned to Break Out This Earnings Season

The second-quarter earnings season has begun, and stock-moving announcements are about to pick up.

While many investors will wait and react, experienced traders know it’s better to prepare early—by looking for stocks that could deliver strong results.

For investors seeking to identify high-potential setups ahead of earnings reports, Investing.com’s screener offers a valuable tool: the predefined “Consistent Earnings Growers” screen.

This ready-made screen highlights stocks that have already risen nearly 19% in the past three months—and all of them have a solid track record of consistently growing profits year after year.

In this article, we’ll show you how to use this screen to build a watchlist of stocks that are most likely to deliver an earnings beat and soar.

Let’s dive in.

How to Access the Consistent Earnings Growers Screen

The first step is to navigate to the Investing.com home page and click the “Stock Screener” button located at the top of the page, as shown in the image below.

Investing.com’s screener offers more than 20 predefined screens, allowing you to find stocks that match multiple criteria with a single click.

These predefined searches can be customized to meet the needs of any investor. To access the predefined screener searches, click the “Explore 20+ filters” button as highlighted in the image below:

You will then discover the catalog of available predefined searches:

Predefined Screens

NOTE: Some predefined searches are reserved for InvestingPro members. However, the “Consistent Earnings Growers” screener is completely free for all Investing.com users.

The image below shows that the stocks identified by the predefined “Consistent Earnings Growers” screen have collectively increased nearly 19% over the past three months.

This research uses the filters below to help investors build a watchlist of stocks most likely to surprise on the upside and soar on quarterly results:

A PEG ratio between 0 and 1
Positive EPS growth over 5 years
A positive return on equity
And a healthy operating margin

In terms of search criteria on the screener, here is what it gives:

Screener Filters

Together, these criteria identify companies that are experiencing efficient and consistent growth, with real strength in their results.

Currently, the predefined screen ’Consistent Earnings Growers’ yielded 696 stocks, including some of the biggest names in technology and all of the Magnificent 7 stocks.

Below are the 10 stocks on this list that performed best over the past three months:

List of Stocks Sorted by Returns

Tip: Sort the results by ‘Next Earnings Date’ under the Profile tab, then filter by ‘Today’ or ‘This Week,’ to surface high-profile names lined up to report.

This will help identify companies scheduled to report soon, making them a priority for investors eyeing a post-earnings pop.

However, we have noticed that most of these stocks display a negative upside potential according to InvestingPro’s Fair Value, which synthesizes several recognized valuation models. In other words, they are currently significantly overvalued.

To narrow things down, we sorted the results by Fair Value upside, a tool available to InvestingPro+ members only.

Fair Value calculates an intelligent average of several well-known valuation models to estimate a stock’s intrinsic worth.

We then sorted the list by Fair Value upside potential. Here are the top 10 results on the list:

Want to unlock the full list of stocks shown in the above image?

Now’s your chance – subscribe to InvestingPro (at up to 50% off as part of our limited-time-only Summer Sale) and gain instant access to this customized screen today.

Already a Pro+ member? Then see the full screen here.

InvestingPro members can upgrade to Pro+ here.

Conclusion

The “Steady Revenue Growth” pre-configured search is therefore an ideal basis for helping you identify the most promising stocks in the face of the Q2 earnings season that has just begun, and which promises to be eventful.

However, as we explained in this article, there are many other predefined screens, many of which are available for free. These could also help you identify the most relevant stocks to buy in the coming weeks.

Click here to access the Investing.com screener and explore predefined screens