JPMorgan Picks Top Stocks for Earnings Season

JPMorgan analysts have named three stocks that they think are worth buying ahead of their upcoming earnings reports in August.

The first stock on their list is Walmart, which has seen its shares decline by nearly 20% since mid-May. JPMorgan believes that Walmart's AI-driven ultra-fast delivery network is an underappreciated competitive edge that will drive demand and margins higher.

The investment firm currently holds an Overweight rating on Walmart shares with a price target of $137, indicating potential upside of nearly 25% from current levels. With a dividend yield of 0.89%, the setup is seen as a classic 'selloff + improving execution' earnings catch-up.

The second stock on JPMorgan's list is Eli Lilly, which has lost about 9% since early July. The analysts expect the upcoming earnings report to kick off a recovery, driven by next-gen obesity drugs that will continue to drive strong earnings power.

JPMorgan maintains an Overweight rating on Eli Lilly shares with a price target of $1,400, signaling potential upside of roughly 25% from current levels. Peer Goldman Sachs also recommends loading up on Lilly on the recent pullback as its next-gen obesity treatments will continue to drive financial upside.

The third stock on JPMorgan's list is Caterpillar, which continues to capture tailwinds from global infrastructure modernization, data center expansion, and power grid buildouts. The investment firm emphasizes that Caterpillar's exceptionally solid balance sheet and pricing power allow the manufacturer to preserve operating margins even during broader macroeconomic uncertainty.