economy
These are HSBC's favorite stocks this earnings season
Alphabet and Amazon are among HSBC's top picks this earnings season, according to a recent note to clients.
TL;DR
- HSBC has named 11 stocks expected to rally during the earnings season.
- Alphabet and Amazon are among HSBC's top picks, spanning IT, technology, and consumer staples sectors.
- Alphabet's potential rally is attributed to high demand for AI, its advanced AI models, and positive impacts on its ecosystem, including cloud services.
- Amazon is expected to benefit from the growth in cloud and AI adoption, leveraging its AWS business and AI infrastructure.
- Monster Beverage is also highlighted for potential growth due to the expanding energy drink market and opportunities in international markets.
- First-quarter earnings per share are projected to grow 12.3% year over year, exceeding the historical average.
- Market volatility persists due to the Iran conflict, but U.S. stocks have seen a rally with the S&P 500 and Nasdaq reaching new highs.