JPMorgan Identifies Top Stocks Ahead of Earnings Season

JPMorgan has identified three stocks as potential buys ahead of their earnings reports in August.

The first is Walmart (WMT), which has lost nearly 20% since mid-May and is seen by JPMorgan analysts as a buying opportunity. They expect the company to report $0.74 per share in earnings on August 20th, with a price target of $137 and potential upside of 25%. The analysts view Walmart's AI-driven ultra-fast delivery network as an underappreciated competitive edge that should show up in demand and margins.

The second stock is Eli Lilly (LLY), which has lost about 9% since early July. JPMorgan analysts expect the company to report $6.71 a share of earnings on August 5th, with a price target of $1,400 and potential upside of roughly 25%. They believe that next-gen obesity treatments will continue to drive financial upside for Eli Lilly.

The third stock is Caterpillar (CAT), which is seen as a premier cyclical and industrial play. JPMorgan analysts maintain an Overweight rating on CAT stock, with a price target of $6.25 per share in earnings on August 5th.