[Market Moment of Truth] Stocks to Watch as We Approach Earnings Season

This could be a make or break for the markets. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Maximize Your Returns with the Best Stock of 2023]( We are excited to present you with an incredible investment opportunity that promises resilience and substantial growth in the years to come. Our dedicated research team has awarded this recession-proof company with our highest rating, making it a valuable addition to any portfolio.[Go HERE to Learn More]( By clicking this link you are subscribing to The Daily Stock Watcher Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Unwrapping Q2 Earnings Season: The Good, The Bad, and The Promising  Hi Traders,  Get set to hold your breath, people! The stock market rally is about to undergo its next grand examination.  Yes, you heard it right, we're referring to the second-quarter earnings season that unofficially rolls in on Friday, July 14.  A gathering storm of anticipation looms, as analysts predict a -6.8% yearly profit decline and a dip of -0.4% in revenue growth. If these numbers hold true, we're staring down the barrel of the third straight year-over-year drop in earnings and the first tumble in sales since Q2 2020.  Now, that's a scene no one fancies, but fear not! Using the InvestingPro stock screener, we've pinpointed high-quality stocks brimming with the potential to flaunt hearty profit and revenue growth amid this tempestuous financial climate.  The scene unfurls with some financial heavyweights stepping into the ring, featuring JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and UnitedHealth (NYSE:UNH) revealing their financial cards on July 14.  Following this, the ensuing week will see industry juggernauts such as Tesla (NASDAQ:TSLA), Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), and more unveil their earnings reports.  But wait! We're not done yet.  Fast forward to the final week of July, and we have the mega-cap tech companies parading their Q2 updates. The parade starts with Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL), followed by Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and concluding with Apple (NASDAQ:AAPL) on Aug. 3.  Now, I don't mean to burst your bubble, but investors are in for a tight squeeze with what could be the dreariest reporting season in three years, thanks to several macroeconomic troublemakers.  The FactSet data reads like a bad news bulletin: Q1 2023 S&P 500 earnings fell -2.0%, and Q2 is anticipated to plunge a further -6.8% compared to the same period last year.  If this prophecy comes true, it would be the largest year-over-year earnings drop since Q2 2020, right when the COVID-19 crisis was reigning chaos. This also indicates the third straight quarter of S&P 500 earnings year-over-year decline.  On the brighter side, seven of the eleven sectors are projected to report year-over-year earnings growth, with the Consumer Discretionary Sector (NYSE:XLY) and Communication Services Sector (NYSE:XLC) leading the charge.  Now, let's not forget revenues.  They're not painting a rosy picture either, with sales growth expected to shrink -0.4% from the same quarter a year prior.  Yet, despite these dark clouds, the tech-heavy Nasdaq Composite has managed to pull a rabbit out of the hat in 2023, rocketing nearly 31% so far, owing to the surge in interest around artificial intelligence and growth stocks of yesteryears.  So, who's shining amidst this gloom? Well, there are 26 stocks, including those from tech giants like Nvidia (NASDAQ:NVDA), Atlassian (NASDAQ:TEAM), and Cloudflare (NYSE:NET), projected to deliver an annualized growth of at least 25% or more in both profit and sales.  If we just look a bit harder, we can find some silver lining lurking behind.  Keep on keeping up!  John @ Traders on Trend  (In the next article: This market bull still expects some strong bullish momentum this second half of the year, want to learn more? Find out below! 👇) Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all.[Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED From Bearish Bets to Bullish Calls: a Market Outlook for 2023  As we ventured into 2023, Wall Street's collective brow was furrowed, with strategists predicting anything but sunshine and rainbows. A rough 2022 had shaken many, and the general sentiment was bracing for a subdued market performance.  However, there's always a maverick in the crowd. Enter Tom Lee, the head honcho at Fundstrat Global Advisors and a relentless bull on equities. Back in December, Lee confidently proclaimed a year-end S&P 500 target of 4,750 – a bold stance that made many folks raise their eyebrows.  Fast-forward to the present, and Lee has doubled down on his optimism. Upping his S&P 500 target to 4,825, he’s forecasting a healthy 9.4% growth from its current standing.  If he’s right, it will outdo the record-high finish of 4796.56 set in January 2022. Quite the plot twist, eh?  Lee firmly believes we have already seen the market's lowest point back in October 2022. He argues that the past nine months have been the budding stages of a new bull market.  According to him, a declining inflation rate signals the Fed’s successful battle against the economic bogeyman. Now, that’s a silver lining if I ever saw one!  By the way, the S&P 500 has already sprinted 14.9% this year. The Nasdaq Composite, with a tech-heavy portfolio, has skyrocketed over 30%, whereas the Dow Jones Industrial Average lagged behind with a 2.3% rise. Now, who said tortoises couldn't fly?  Lee's perspective on inflation is of particular interest.  (article continues below) Sponsored [You Can’t Escape Inflation So Profit From It Here]( “Inflation is bad” – yeah we all get it. There’s nothing you can do to stop it though. If you can’t beat ‘em – join ‘em. That means learning to leverage inflation to build your wealth instead of devaluing it.[Claim Your Copy Of Our Research Report FREE]( By clicking this link you are subscribing to Conservative Investor News’s Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  He feels that if the headline consumer-price index drops to around 3%, the Federal Reserve could switch gears to a more relaxed stance, despite having paused on a hawkish note in June.  Predictions from the Federal Reserve Bank of Cleveland estimate that June CPI inflation could be around 0.4% for the month, pulling the year-on-year level down to 3.2% from 4% in May.  Nevertheless, Lee anticipates a drop in core CPI to under 3% annualized as lingering factors such as housing and autos begin to wane.  Now, onto the tech scene. Lee is all-in on the continuous advancements in artificial intelligence driving this "new bull market".  He contests the critics who point out the market's overreliance on the "Magnificent Seven" and the concerning lack of market breadth. Lee firmly believes that the situation is improving and will continue to do so.  Flashback to late October, Lee kept his 2022 year-end price target for the S&P 500 at a hefty 5,100, despite being in the minority. He defended his stance despite the consensus forecasting a flat finish for 2023 amid an economic recession.  While many viewed his 2022 bullish call as ambitious, Lee stands by his decisions. "It wasn’t easy to be bullish," he admits, referencing the first half of this year's tug-of-war between bullish and bearish factors.  Regardless, he believes that holding firm on his bullish view paid off in 2023.  Looking at the second half of 2023, Lee acknowledges the potential roadblocks in his outlook. "Nothing's guaranteed," he quips. Inflation uncertainties, the risk of a Fed policy mistake, geopolitical tensions, and consumer spending fluctuations can all stir the pot.  Yet, he remains unfazed, arguing that the market has already factored in most of these risks.  In a rather interesting twist, Lee speculates that there's more risk of a panic-buying moment than a panic-selling moment.  He believes that at some point, the market participants must acknowledge that a bear-market rally failure may not happen.  Now, that's something to ponder over.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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