The S&P 500 finally reached new all-time highs this week, surpassing the level last seen in February, and investors have plenty of confidence as they move into the summer.
While several factors influenced the April drawdown and subsequent recovery, the market's continued strength has been bolstered by strong corporate earnings in the first quarter. This month, we will begin to see earnings figures for the second quarter. Whether those numbers can match those from Q1 could make or break this rally.
Today, we’re examining five stocks that not only reported impressive Q1 results but also increased their guidance for Q2, indicating they anticipate earnings to remain strong. These are the most likely stocks to keep rallying through earnings season.
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Let’s take a look.
Advanced Micro Devices Inc.
AMD (NASDAQ:AMD) reported earnings for Q1 2025 on May 6 and smashed expectations on its way to a record quarter. Q1 revenue came in at $7.44 billion, beating the expected $7.1 billion easily and demonstrating year-over-year (YOY) growth of over 35%. The $0.96 EPS figure also beat expectations by $0.03. The data center segment saw the most considerable expansion, growing 57% YOY. AMD also raised the top end of its Q2 guidance estimates to $7.7 billion, placing Q2 revenue within a range of $7.1 billion to $7.7 billion. The consensus expectation for AMD Q2 revenue is currently $7.2 billion.
June saw a flurry of price target bumps from analysts covering AMD shares, including a June 23 double upgrade from Hold to Strong Buy from Melius Research (along with a price target bump from $110 to $175). The earnings beat, guidance raise and analyst upgrades have contributed to the stock's resurgence as shares finally broke above the 50-day and 200-day moving averages. The MACD confirms the bullish action, so AMD now has fundamental and technical tailwinds at its back as we prepare for Q2 earnings season. If AI capital expenditure (CapEx) spending continues to grow, AMD could be one of the biggest winners in the second half of 2025 and beyond.
Ulta Beauty Inc.
ULTA (NASDAQ:ULTA) reported earnings on the last day of May, and its numbers were impressive, especially for a company bracing for impact from tariffs. The company blew away both EPS and revenue projections, beating EPS estimates by $0.97 ($6.70 EPS reported vs. $5.73 expected). Quarterly revenue grew 4.5% YOY, led by a stunning increase in comp sales that far exceeded Wall Street estimates. ULTA reported Q1 comp sales growth of 2.9%, while the Street had expected a minute 0.2%. The company also raised the top of its full-year 2025 guidance estimates to $11.7 billion in total sales, with EPS ranging from $22.65 to $23.20, up from $22.50 to $22.90.
Following the optimistic report and guidance raise, the stock rallied fiercely, jumping 11% in the session following the earnings release. A bullish technical signal materialized as well: the Golden Cross, where the stock's 50-day MA rises above the 200-day MA. A Golden Cross signifies renewed interest from technical traders, and combined with the earnings tailwinds, gives ULTA a strong bull case going forward.
Adobe Inc.
The progenitor of the PDF, Adobe (NASDAQ:ADBE), also posted strong earnings for Q1. On June 12, the company announced $5.06 EPS (beating the $4.97 estimate) and revenue of $5.87 billion, which represented YOY growth north of 10%. Despite the sales growth, the stock remains somewhat undervalued compared to its high-flying tech peers, trading at 23 times forward earnings with a Price-to-Earnings (PEG) growth rate of 1.83. The average P/E ratio for the tech sector remains elevated above 35 for comparison.
Adobe kept its full-year 2025 revenue estimates unchanged during the Q1 report, but upped EPS projections from $20.36 to a range of $20.50 to $20.70. The market's reaction to the June 12 earnings report was muted, but that could be because the downtrend had already broken in the previous month. ADBE shares finally broke above a resistance level that had been locking the price down since late December, and now that the RSI has drifted under 70 again, a new entry point could be on the horizon.
Amer Sports Inc.
Unlike competitors like Lululemon, Amer Sports (NYSE:AS) has thrived despite worrisome tariff troubles. The Salomon and Arc'teryx manufacturer posted earnings on May 20 and absolutely scorched the market's expectations, especially in terms of EPS ($0.27 per share reported vs. $0.12 expected). The company's quarterly revenue of $1.47 billion also represented growth of more than 24% from the same period last year.
Amer Sports raised guidance on both full-year EPS and revenue projections, delighting the market and quelling fears in an industry that's been unequally punished by tariffs. The stock made new all-time highs earlier this month, with the uptrend strengthening thanks to increasing volume and bullish action on the moving averages. Don't sleep on this up-and-coming sports apparel machine.
Jabil Inc.
Jabil (NYSE:JBL) is an AI play that has been gaining steam this year, thanks to (you guessed it) earnings growth backed by strong technical trends. During the company's fiscal Q3 2025 earnings release on June 17, CFO Greg Hebard reported net revenue of $7.8 billion, beating not just analyst expectations but the company's internal projections by more than $800 million. EPS also came in 35% higher YOY at $2.55 per share. Full-year 2025 revenue guidance was raised to $29 billion, and the high-end EPS range was boosted to $9.33. The free cash flow position also continues to improve, as the company banked $326 million in Q3 and now expects to hold a $1.2 billion cash pile by the end of 2025, while still completing its $1 billion stock buyback plan.
The company's second-half plans were applauded by investors, who sent the stock to new all-time highs earlier this month. The share price had already risen above the 50-day and 200-day MAs back in May and the uptrend continues to gain steam on solid fundamental data. The technical and fundamental tailwinds are supported by continued analyst backing, including Bank of America, which raised its JABL price target to an industry high of $245 on June 20.
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