JPMorgan Singles Out Three Stocks for Earnings-Led Rebound in August

JPMorgan analysts have identified three stocks worth buying ahead of earnings in August, despite the turbulent market backdrop.

The first stock on their list is Walmart (WMT), which has lost nearly 20% since mid-May. However, JPMorgan believes that the company's AI-driven ultra-fast delivery network is an underappreciated competitive edge that should drive demand and margins. The analysts maintain an Overweight rating on WMT shares with a $137 price target, indicating potential upside of almost 25%. They also point out that the stock offers a 0.89% dividend yield.

The second stock is Eli Lilly (LLY), which has been in a downtrend lately, losing about 9% since early July. JPMorgan expects the company's upcoming earnings on August 5th to mark the beginning of its recovery, driven by next-gen obesity treatments that will continue to drive financial upside. The analysts maintain an Overweight rating on LLY stock with a $1,400 price objective, signaling potential upside of roughly 25%. Peer Goldman Sachs also recommends loading up on Lilly due to its strong earnings power.

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