Stocks posted their strongest week since November, driven by a sharp relief rally after the U.S. and Iran agreed to a two-week ceasefire. The Dow jumped 1,300 points on Wednesday alone. Oil dropped below $100 a barrel. By Friday, the S&P 500 had gained over 3% for the week and the Nasdaq climbed more than 4%.
But the week didn’t end clean. Friday brought hotter-than-expected inflation numbers and consumer sentiment hit an all-time low. Indexes gave back a sliver of their gains heading into the close.
This week is all about earnings. Goldman Sachs reports Monday. JPMorgan, Citigroup, Wells Fargo, and Johnson & Johnson on Tuesday. Morgan Stanley and Bank of America on Wednesday. Netflix on Thursday. Here are three names we think are set up well heading into the week.
Capital One Financial (COF)
Capital One has gotten beaten up in 2026, down more than 20% while the broader market has wobbled. But JPMorgan just upgraded the stock to Overweight, calling it their top pick in consumer finance. Their price target of $213 implies about 10% upside from Friday’s close at $193.
The timing matters. Capital One completed its $35.3 billion merger with Discover earlier this year, making it the largest credit card issuer in the country. And just last week, the company closed a $2.56 billion acquisition of Brex, the corporate credit card company. That gives Capital One a foothold in business banking it didn’t have before.
The average analyst price target sits around $264, which implies roughly 37% upside from current levels. Of 24 analysts covering the stock, the consensus leans firmly toward Buy. With financials in the spotlight as bank earnings roll in this week, Capital One could catch a bid if the sector reports strong numbers.
Micron Technology (MU)
Micron reported one of the most jaw-dropping quarters in recent memory last month. Revenue came in at $23.86 billion, nearly triple what the company earned in the same quarter a year ago. Earnings per share hit $12.07 versus Wall Street’s estimate of $9.00. The stock spiked to $471 on the news but has pulled back about 11% since then to close Friday at $420.59.
The reason for the blowout is straightforward. AI runs on memory chips, and there are only three companies on the planet that can make the high-bandwidth memory chips that power those systems: Micron, Samsung, and SK Hynix. Demand is outpacing supply, and Micron guided next quarter revenue to roughly $33.5 billion, which would be another record.
UBS just raised its price target to $535, citing a memory “super-cycle” and expected DRAM and NAND price increases of 30% to 50% this quarter. That target implies about 27% upside from Friday’s close. For anyone who wants exposure to the AI infrastructure build-out without buying Nvidia at its peak, Micron offers a way in at a more reasonable entry point.
Johnson & Johnson (JNJ)
If the first two picks lean toward growth and momentum, this one is for the patient investors. Johnson & Johnson reports Q1 earnings Tuesday morning before the open. Analysts expect $2.68 per share on revenue of $23.6 billion.
The stock has been on a steady climb since last summer, running from around $155 to a high near $250 in March before pulling back to $238. It’s trading right around the average analyst target, which might look like the easy money has been made. But HSBC sees it differently. They just raised their price target to $280, and Wolfe Research set theirs at $240. If Tuesday’s report comes in strong, the stock could push back toward recent highs.
J&J has increased its dividend for 63 consecutive years. That’s Dividend King territory. Current yield sits around 2.15%. The talc litigation continues to hang over the valuation, keeping the multiple compressed relative to pharma peers. For long-term holders, that overhang looks more like an opportunity than a dealbreaker. A clean earnings report Tuesday could remind the market what this company actually earns.
