Image Source: Pexels

As second quarter earnings season moves into its final month, the frenzy of daily earnings has slowed considerably. But there are still some important earnings still to come.

Here are three stocks that investors should be dialed in to this week, as each reports earnings.

1. Dollar Tree

Dollar Tree (Nasdaq: DLTR), the discount retail chain, has had an interesting year. In March, it announced that it was selling off its underperforming Family Dollar chain to a private equity firm, and the stock took off. It has also benefited from being a discount retailer during a time of rising inflation and a slowing economy. In the first quarter, net sales grew 5.4% and traffic jumped 2.8%.

On the other hand, it will be subject to Trump’s tariffs, as it imports a significant amount of inventory from China. In the first quarter it managed to mitigate the impact of the tariffs, and expects to for the rest of the year, but it bears watching.

Year-to-date, Dollar Tree stock is up 49.5% and analysts see more room for growth, as it has a median price target of $120, which suggests an 8% return. When Dollar Tree reports earnings Wednesday morning, analysts expect earnings of 41 cents per share and revenue of $4.5 billion, both of which will be down year-over-year because last year’s numbers included Family Dollar.

2. Salesforce

Salesforce (NYSE: CRM), a leader in customer relationship management software, has struggled this year, with its stock price down 25%. And despite the drop, the stock is still not cheap, with a P/E ratio of 40.

Salesforce has seen its growth decelerate somewhat this year, after years of double-digit revenue growth. In Q3, analysts expect revenue and earnings growth both to be around 9%. One thing to watch is sales or adoption of its new Agentforce AI chatbot service, which was introduced last year. So far, it hasn’t had a major impact on sales or earnings, so investors should be looking for signs that this will be a growth engine that it is expected to be.

Analysts are bullish on Salesforce stock, as 81% rate it a buy. It has a median price target of $350 per share, which suggests 40% growth. But note, it is still overvalued.

3. Broadcom

Broadcom (Nasdaq: AVGO) has been one of the leading AI stock over the past few years, riding the AI boom as a chipmaker for mobile and broadband networks.

The stock posted triple digit returns in 2023 and 2024, and this year it has gained another 27%. Last quarter, Broadcom had record revenue and earnings that climbed 134% year-over-year.

When Broadcom reports earnings Thursday afternoon, analysts anticipate 34% earnings growth and a 21% revenue increase. It has a reasonable forward P/E of 35 and a median price target of $310 per share, suggesting 5% growth. Broadcom is a great stock that should always be on your radar, but keep a close eye on its valuation.

More By This Author: