Three Stocks to Watch Ahead of Earnings: UNH, Tesla, and Netflix
As earnings season kicks off, investors are bracing for potential market volatility. Historically, significant stock movements occur as companies release their financial results and future guidance. However, seasoned investors often recognize that the most opportune time to act can be before these reports, particularly when anticipating strong performance. Taking a proactive approach can position investors to capitalize on gains in the days and weeks following earnings releases. This quarter, analysts are highlighting three stocks that may warrant consideration before their upcoming reports.
Identifying Potential Winners Before the Bell
This earnings cycle features a mix of opportunities, including companies undergoing corrections and established market leaders. Two of the highlighted companies have experienced recent sell-offs that may be overdone, while the third has consistently performed well in the consumer discretionary sector.
UnitedHealth Group (UNH): A Potential Reversal?
UnitedHealth Group Inc. (NYSE:UNH) has faced scrutiny recently, contributing to a substantial 48% decline in its stock price over the past three months. This pullback was fueled, in part, by a first-quarter earnings report in April that missed expectations and prompted lowered guidance.
Despite these challenges, technical indicators suggest a potential bottom may be forming. “The chart is showing that UNH stock formed a clear bottom in the middle of May,” one analyst noted. The stock has since consolidated, exhibiting a slightly bullish trend. Investors are watching for a potential breakout around the $325 mark, which aligns with the stock’s 50-day simple moving average (SMA).
The upcoming earnings report on July 15 could serve as a catalyst. A positive “beat-and-raise” scenario – exceeding analyst expectations and increasing future guidance – could bolster the stock, supporting the current Moderate Buy rating and a consensus price target of $415.57, representing a 38% increase from its July 8 closing price. Despite recent downgrades from some analysts, JPMorgan recently raised its price target for UNH to $418 from $405, signaling potential upside.
Tesla (TSLA): Navigating Leadership and Demand
Tesla (NASDAQ:TSLA) stock has experienced significant volatility in 2025, a pattern familiar to long-term shareholders. This fluctuation underscores a key dynamic: the company’s greatest strength – the visionary leadership of Elon Musk – can also be a source of weakness.
Investor sentiment has been impacted by Musk’s involvement in external ventures and concerns about his focus on Tesla’s core business. This led to some investors selling their shares, and even their vehicles, in protest.
However, Tesla remains a dominant player in the global electric vehicle (EV) market. The primary challenge facing TSLA stock is slowing demand, particularly in China. Despite ongoing development in robotics and autonomous driving, the EV business remains the core driver of revenue and profit.
Currently, Tesla is trading near the consensus price target reported by MarketBeat analysts and around its 50-day SMA, which has historically acted as both support and resistance. While analyst ratings and price targets vary widely, the earnings report on July 23 is expected to provide short-term clarity. “
Netflix (NFLX): Continued Growth Potential
Netflix Inc. (NASDAQ:NFLX) is experiencing a period of consolidation after a strong rally following its last quarterly earnings report. While the stock isn’t exhibiting bearish signals, buyers appear to be pausing, awaiting a catalyst for further gains.
That catalyst could arrive on July 17, when Netflix reports earnings. Some analysts believe the stock’s upside is limited at its current level. However, similar skepticism existed when the stock traded around $1,000. If Netflix maintains its current earnings growth trajectory of approximately 22%, analysts suggest further gains are likely.
Additionally, a stock split remains a possibility, although not a current priority for the company. Netflix has split its stock twice previously, most recently in 2015 with a 7-for-1 split. Currently, the company is focused on content creation and international expansion. However, with the stock price exceeding $1,200 per share, speculation regarding a split is likely to continue.
