HSBC Highlights Top Stocks for Earnings Season

As earnings season kicks off, HSBC has identified its favorite stocks, notably including two from its Magnificent Seven list. With many companies gearing up for financial report releases in the upcoming weeks, analysts are generally optimistic about strong results. They predict that first-quarter earnings per share will increase by 12.3% year-over-year, slightly above the average of 11.4% observed since 2009, as reported by S&P Capital IQ.

This earnings cycle coincides with rising oil prices and a volatile market, impacted by the ongoing conflict with Iran, which poses risks to global supply chains. Nonetheless, U.S. stocks saw a positive turn on Thursday, with the S&P 500 and Nasdaq reaching new highs. There’s a sense of optimism that a resolution to the U.S.-Iran situation might be in sight.

HSBC has listed 11 stocks that are expected to gain traction this earnings season, with candidates such as Alphabet and Amazon spanning multiple sectors, including consumer staples, IT, and technology.

Alphabet

Alphabet is poised for growth, driven by strong demand for artificial intelligence, as noted by HSBC. The company is set to release its first-quarter results on April 29. HSBC points out that the full-stack AI models, like Gemini 3.0 and 3.1 pro, could act as significant catalysts for the stock. Analyst Paul Rossington remarked that AI capabilities have bolstered Google’s market share in traditional queries and added value across the Alphabet ecosystem, enhancing ad targeting and the YouTube experience.

HSBC has a “buy” rating for Alphabet with a price target of $385, suggesting a potential 15% upside from its closing price on Thursday. The growth in AI demand is likely to boost not just capital spending but also increase Alphabet’s profits, benefiting its stock price. Rossington noted that Alphabet’s capital spending is on track for substantial growth in 2026, currently projected at $175-185 billion, compared to around $90 billion last year.

Amazon

Similarly, Amazon, which will also announce its results on April 29, is expected to experience positive momentum. HSBC suggests that the company is strategically positioned to leverage the infrastructure boom relating to emerging technologies like AI, particularly through its Amazon Web Services division. Rossington maintains that Amazon is well-equipped to seize the growth opportunities offered by the expanding cloud and AI markets.

HSBC rates Amazon as a buy with a target price of $280, which implies a 12% upside from Thursday’s closing price. The anticipated growth in AI is expected to be underpinned by high-quality silicon products, enabling companies to access a wide range of major frontier models.

Monster Beverage

In the energy drink sector, Monster Beverage is also expected to see stock increases. According to HSBC analyst Carlos Lavoie, the U.S. energy drink market, led by Monster, is not only large but also expanding. Monster accounts for nearly one-third of U.S. energy drink revenue and has significant potential for future growth.

HSBC has given Monster a “buy” rating with a price target of $98, indicating a 31% upside from its Thursday closing price. With no debt and a solid capital base, Monster has the flexibility to continue its stock buybacks. The company could boost growth by enhancing its presence in Europe and Latin America and by appealing to female customers, as well as health- and price-conscious shoppers. However, it’s worth mentioning that the stock has dropped nearly 2% this year.