Earnings season is heating up, and a handful of names are standing out for their momentum, resilience, and potential upside in the weeks ahead. While many investors are bracing for volatility, there are several companies with the setup to surprise to the upside—whether from improving fundamentals, strategic advantages, or misunderstood narratives. Each of the stocks below has been highlighted by analysts for their favorable positioning going into upcoming earnings. Here’s why they’re worth watching now.
Yum China (YUMC): Quiet Strength With Delivery Catalysts
Yum China, the operator of KFC and Pizza Hut in China, is starting to gain traction again after a modest stretch of underperformance. With earnings expected in early August, comps are projected to pick up in the second quarter and beyond. One short-term catalyst: an increase in delivery orders as customers resume normal routines. But there’s also a longer-term story here—analysts point to sustainable growth ahead, supported by Yum China’s strong business model and operational visibility.
Shares are up 5% so far this month, and the improving sales trend could give them more room to run.
Starbucks (SBUX): Stabilizing U.S. Sales, Global Growth Potential
Starbucks hasn’t had a breakout year, but analysts are seeing signs of stabilization in U.S. operations—a key driver of recent strength. Sales consistency, a clearer turnaround strategy, and lower spot coffee prices are all helping to support the case for patient investors. The upcoming earnings report (expected in early August) may not blow the doors off, but the stock could reward those who are willing to ride out near-term uncertainty.
International growth investments are another bright spot, and analysts say the broader story is starting to come into focus.
AT&T (T): Undervalued, With Fiber Growth and Cash Flow Upside
AT&T shares are up 18% this year, and analysts think the run may not be over. The company is benefiting from strong fiber growth and reduced cash taxes—two factors that help insulate it from any near-term slowdown in wireless.
One analyst recently raised their price target to $32 (from $31), calling the stock one of the most compelling risk/reward setups in the space. AT&T is set to report earnings on July 23.
Clearwater Analytics (CWAN): Under-the-Radar Name With September Triggers
CWAN is being watched closely for a few reasons: earnings momentum, potential estimate revisions, and what one analyst called a “wall of worry” on acquisitions. If the company provides clarity or positive news about any recent or planned acquisitions, it could remove uncertainty and act as a bullish trigger.
There’s also anticipation of a “catalyst-heavy September”—possibly tied to earnings results, guidance updates, or new business wins. This tactical setup makes Clearwater an interesting name for those looking to get ahead of a potential re-rate.
O’Reilly Automotive (ORLY): Defensive Growth With Pricing Power
O’Reilly remains a standout in the auto parts space. Analysts say the company is relatively insulated from tariff risk thanks to strong pricing power and favorable purchasing leverage. In fact, during the 2018–2019 tariff period, ORLY still posted 3–4% comps and saw gross margins expand.
A key strength is O’Reilly’s growth in the DIFM (Do It For Me) segment: professional repair shops and mechanics who buy parts to install on behalf of their customers. The DIFM segment tends to be more stable and less price-sensitive, making it especially attractive for companies like O’Reilly. These customers buy in larger volumes and are typically less affected by inflation or economic uncertainty than DIY customers. O’Reilly has been growing its DIFM business, which helps support consistent margins and reduces volatility.
Analysts say the risk/reward here continues to skew positive given the backdrop.
