3 Growth Stocks To Buy Before Q2 Earnings

Today’s episode of Full-Court Finance at Zacks explores the bullish case for the market as we start August amid a strong second-quarter earnings season. The episode then dives into three growth-focused stocks—Roku, Etsy, Yeti—that might be worth buying ahead of their financial releases later this week.

The final week of July featured quarterly earnings reports from the largest companies in the world, including Apple (AAPL Quick Quote AAPL - Free Report) , Microsoft (MSFT Quick Quote MSFT - Free Report), and countless other technology giants. Despite a few stocks popping, Wall Street’s response was largely tepid to blowout results that highlight tech’s impressive earnings and revenue growth.

Some sentiment points to slowing growth and possible big tech deceleration going forward. But those are more near-term concerns with technology set to dominate our lives and the market for the foreseeable future.

That said, it won’t be shocking to see more selling in the near term given the impressive run over the last several months. Plus, the market bounced back so quickly from its mid-July pullback that another healthy recalibration could be in the cards.  

Long-term investors shouldn’t be nervous about any second-quarter earnings season pullbacks or more selling to end the summer because the bull case remains strong, despite some legitimate worries. And the low-interest rate environment will likely keep Wall Street chasing returns in stocks even when the Fed starts to raise rates off rock-bottom levels—the 10-year U.S. Treasury has remained below 3% for nearly all of the last ten years.

With this in mind, now appears to be a solid time to consider adding a few strong growth stocks. First up is Roku (ROKU Quick Quote ROKU - Free Reportahead of its Q2 release on Wednesday. The streaming company is poised to benefit from the continued expansion of the industry and it won’t matter who wins the streaming wars between Disney (DIS Quick Quote DIS - Free Report), Netflix (NFLX Quick Quote NFLX - Free Report), and other players.

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