Q4 Earnings Bets: 3 Stocks to Buy BEFORE the Reports Roll In

Take a look at the three stocks to buy before earnings if you want to take home immediate gains

The first earnings season of 2024 is in full swing, and while it has given investors a lot of hope and optimism, it has also disappointed in a few industries. Several companies are set to report results this month, so there will be heavy movement in the stock market in the coming weeks. While Tesla’s (NASDAQ:TSLA) earnings disappointed many, other companies could report impressive numbers and their stocks could rally. Here are three stocks to buy before earnings, as the stellar numbers will push the stocks higher. 

Microsoft (MSFT)

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Tech giant, Microsoft (NASDAQ:MSFT), will certainly impress with its quarterly numbers. The company expects to start generating income from the investment in artificial intelligence (AI), and while the numbers may not be large, they will continue to grow. The tech giant is firing on all cylinders and has had an excellent 2023. 

In the first quarter of fiscal 2024, the revenue totaled $56.4 billion, up 13% yearly and the EPS increased by 27% to $2.99. Its cloud segment is one of the fastest-growing business areas, and it saw a 13% rise in revenue. Within the cloud segment, Azure contributes the most to the revenue, increasing by 29% year-over-year. I believe this segment will continue to grow throughout 2024. 

Microsoft hasn’t disappointed in the past, and I am certain it will not disappoint this quarter. The company is well-positioned in the industry and could continue seeing double-digit revenue growth over the next five years. It also has some of the most lucrative business segments that can contribute to a higher operating margin. 

MSFT stock isn’t cheap, but this doesn’t mean you walk away from it. Trading at $403 today, the stock has soared 66% in the year and is only moving upward. Let’s not forget the company also pays a small but significant dividend. It has a yield of 0.74% and enough liquidity to keep rewarding the shareholders. We can expect a higher dividend in the coming years with a steady increase in payout each year. 

The company is set to report results on Jan. 30, and we will see how well it is doing. Positive news could take the stock to new highs. Microsoft is one of the best stocks to buy before earnings.

Alphabet (GOOG, GOOGL)

GOOG stock: letters spelling out google

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Alphabet’s (NASDAQ:GOOG,GOOGL) products have become a huge part of our lives and have generated steady revenue for the company over the past two decades. Its Google Search has been our go-to for all these years, and it hasn’t lost share to artificial intelligence or any of its competitors. It remains a cash machine for Alphabet and will continue to be so. YouTube is slowly becoming a major growth driver for the business.

Like Microsoft, Alphabet also has a very successful cloud business that generates significant revenue each year. In the third quarter, it reported an 11% revenue growth, with the revenue at $76.69 billion and an EPS of $1.55 per share. Its Cloud segment reported a revenue of $8.41 billion, while the advertising revenue came in at $7.95 billion. It reported an operating profit of $266 million from a loss of $440 million in the same period earlier year. 

If the company reports strong cloud revenue numbers, the stock will move higher after the results. As the economy improves, we could see Alphabet do even better. Companies will be ready to spend on advertising, increasing its revenue. The company has invested in artificial intelligence and added generative AI to its products and services. Its cost-cutting measures have also led to positive results. 

GOOG stock is exchanging hands for $153, which looks cheap compared to the other tech stocks. It has massive potential to keep soaring, and while it is trading at its 52-week high, there is still a chance for an upside. In the past five years, the stock has soared over 170%. The company is set to announce results on Jan. 30, and it is one of the top stocks to buy before earnings.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

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E-commerce giant Amazon (NASDAQ:AMZN) has a lot working in its favor. With an improvement in consumer spending, I believe Amazon will report better-than-expected fourth-quarter results. The company has become a one-stop solution for everything one needs, including cars, and yet, it is so much more than that.

It has also reported impressive advertising revenue, and this is one segment that is set to continue growing. The company’s sales have bounced back, and Amazon Web Services (AWS) is one of the fastest-growing segments today. The segment may have seen volatility in growth, but I believe it will stabilize this year. 

Amazon has already invested in AI and is using it across different segments. In its third-quarter results, the company saw a 13% rise in sales to $143.1 billion, and the net income came in at $9.9 billion. One highlight of the report is the international sales expansion. It grew its international sales 16% year over year, with the North American segment showing the highest growth of 11% year over year. 

For the fourth quarter, it expects net sales of $160 billion to $167 billion and operating income of $7 billion to $11 billion. At the 52-week high, AMZN stock is trading for $159, but there is immense upside potential. It is already up 58% year to date and 95% in the past five years. 

Amazon is set to report results on Feb. 1, which could be a blowout quarter driven by Prime Day and holiday sales. Buy the stock before it hits a new high over the coming weeks. An economic improvement will lead to higher consumer spending and give Amazon an exceptional 2024. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.