These are HSBC's favorite stocks this earnings season
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As earnings season kicks off, HSBC is naming its top picks for the period, including two "Magnificent Seven" stocks. Many companies are preparing to post their financial reports over the next few weeks, with some analysts expecting to see strong results across the board. First-quarter earnings per share are projected to grow 12.3% year over year, coming in above the 11.4% average seen going back to 2009, per S & P Capital IQ. This earnings season comes as markets remain volatile due to the ongoing Iran war, which has spiked oil prices and threatened to roil global supply chains. However, U.S. stocks continued their two-week rally on Thursday, with both the S & P 500 and Nasdaq setting fresh all-time highs, amid surging optimism that the U.S. and Iran could reach a deal to end the conflict. HSBC picked 11 stocks that are likely to rally during earnings season, and a few are listed below. Its picks include Alphabet and Amazon, and span a variety of sectors such as consumer staples, IT and technology. Alphabet Alphabet could rally during earnings season, especially as demand for artificial intelligence remains elevated, per HSBC. The tech company is slated to report its first-quarter earnings on Wednesday, April 29. The Google owner's full-stack AI model, which includes Gemini 3.0 and 3.1 pro, could be a strong catalyst for the stock as its effects reverberate across its verticals, according to HSBC. "The introduction of AI features has helped to grow Google's share of the traditional query market and drive value across the Alphabet ecosystem, including better ad-targeting and creation and improving the YouTube experience," HSBC analyst Paul Rossington wrote. The investment bank has a buy rating on Alphabet and a $385 price target on shares, implying a potential 15% gain from Thursday's close. Higher AI demand should translate into not only increased capital expenditures but also increased revenue at Alphabet — a boon for the firm's stock, the analyst said. "Alphabet has guided to a material increase in 2026e capex that was well ahead of consensus, now USD175-185bn vs 2025 at cUSD90bn and consensus USD120bn," Rossington wrote in his note. "However, this was also accompanied by increased 2026e revenue and EBIT expectations, driven by the stronger-than-expected growth with which Alphabet exited 2025, primarily led by cloud." Shares are up more than 7% in the year to date. Amazon Amazon , which also reports earnings on April 29, could also gain some ground, per HSBC. The delivery giant is well positioned with its Amazon Web Services business to capitalize on an infrastructure boom tied to emerging technologies, including AI, according to the investment bank. "Our investment thesis remains that Amazon is well placed to take advantage of the growth opportunity offered via structural growth in cloud and AI adoption," HSBC's Rossington wrote. The investment bank has a buy rating on Amazon and a $280 price target on shares, implying 12% upside from Thursday's close. Amazon's AI growth should be "supported by a high-quality silicon offering (Trainium and Graviton) and its flexible platform status that allow enterprises to access over 20 leading frontier models to the benefit of a significant order backlog," Rossington said in the note. He added that Amazon is expected to add more compute capacity over the next two years than any other cloud provider globally. Shares have risen 8% since the beginning of the year. Monster Beverage Monster Beverage should see its shares rise as the energy drink market continues to expand. The beverage giant is slated to report earnings on May 14. "The energy beverage category, led by Monster in the US, is big and getting bigger," HSBC analyst Carlos Laboy said in a research note. "Monster represents a significant portion of the global energy drink market and nearly a third of US energy drink revenue, with major opportunities for new growth." HSBC has a buy rating on the stock and a $98 price target on shares, implying 31% upside from Thursday's close. With no debt on its balance sheet, Monster has an "excellent" capital position and full flexibility to keep buying back its stock, the analyst said. Monster could accelerate its growth by bolstering its presence in Europe and Latin America, while new brand acquisitions would allow the firm to target more female customers as well as wellness and price-focused shoppers. Shares have ticked down nearly 2% in the year to date.