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2 Top-Notch Stocks to Buy as Q2 Earnings Approach: GE,TSM

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Outside of Q2 results from big banks, this week’s earnings lineup will feature quarterly reports from several top-rated stocks, including GE Aerospace (GE - Free Report)  and Taiwan Semiconductor (TSM - Free Report) .

As two of the market’s top performers in recent years, GE stock has spiked over +50% year to date, with TSM sitting on respectable gains of +15%. Even better, GE and TSM are now up over +300% and +160% in the last three years, respectively.  

Furthermore, both sport a Zacks Rank #2 (Buy) and are expected to help reconfirm their expectations of double-digit earnings growth in fiscal 2025 and FY26.

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GE Aerospace’s Q2 Expectations

Seeing high demand for its commercial engines and services, GE Aerospace’s Q2 earnings are expected to spike 19% to $1.43 per share from EPS of $1.20 in the comparative quarter. On the top line, GE Aerospace’s Q2 sales are thought to have climbed 18% to $9.7 billion versus $8.22 billion a year ago.

Notably, GE Aerospace has surpassed the Zacks EPS Consensus for 10 consecutive quarters with an average earnings surprise of 17.97% over the last four quarters. More intriguing, The Zacks ESP (Expected Surprise Prediction) suggests GE Aerospace could continue this impressive streak with the Most Accurate and recent estimates among Wall Street having Q2 EPS pegged at $1.50 and nearly 5% above the Zacks Consensus.

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Taiwan Semiconductor’s Q2 Expectations

As the go-to chip foundry provider for AI giants like Nvidia (NVDA - Free Report) , AMD (AMD - Free Report) , and Broadcom (AVGO - Free Report) , among others, Taiwan Semiconductor’s Q2 EPS is expected to climb 60% to $2.37 compared to $1.48 a share in the prior year quarter. This comes as Taiwan Semiconductor’s sales are slated to stretch 44% to $30.04 billion from $20.82 billion in Q2 2024.

Taiwan Semiconductor has surpassed earnings expectations for 18 consecutive quarters, with an average EPS surprise of 6.91% over its last four quarterly reports. Plus, the Zacks ESP suggests Taiwan Semiconductor can keep its impressive earnings streak alive as well, as the Most Accurate estimate has Q2 EPS slated at $2.45 and 3% above the Zacks Consensus.

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Bottom Line

With strong quarterly reports expected from both of these iconic companies, GE and TSM shares looked poised for more upside. Reassuringly, FY25 and FY26 EPS estimates have already trended higher for GE Aerospace and Taiwan Semiconductor over the last 60 days, and a Q2 earnings beat could certainly cause a surge in these two top-performing stocks.

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