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Welcome to Episode #491 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to discuss the upcoming second quarter earnings season as well as three Zacks Rank #1 (Strong Buy) stocks that investors might want to keep on their short lists.
Get Ready for Q2 Earnings Season
Second quarter S&P 500 earnings are now expected to jump 24% year-over-year after surging 25.7% in the first quarter. This is on revenue growth expected to be 11.3%.
Excitement is building for this earnings season but some analysts have been raising estimates ahead of the reports. Zacks top ranked Strong Buy stocks reflect the analysts’ bullishness on those companies.
Some companies are already Strong Buys even before reporting their next earnings report.
Ford Motor Co. is a Zacks Rank #1 (Strong Buy) stock ahead of its July 28, 2026, second quarter 2026 earnings report. Shares of Ford are up just 3.7% year-to-date after it gave up some recent gains.
Earnings are expected to jump 50.5% in 2026 and one estimate is higher for the second quarter in the last 60 days.
Ford is cheap. It trades with a forward price-to-earnings (P/E) ratio of just 8.2. A P/E ratio under 10 usually indicates a company is a deep value.
It also is shareholder friendly. Ford pays a dividend currently yielding 4.4%.
Wayfair, which describes itself as the destination for all things home, is transforming itself from an online home goods retailer to a dual threat of online and physical stores. Wayfair currently operates three physical stores and has announced five more.
Analysts are bullish about 2026 with two estimates higher in the last 60 days. Earnings are expected to rise 11.9% in 2026 and another 29.6% in 2027.
While shares are down 10.1% year-to-date, they have rallied over the last month, jumping 26.6%. Wayfair now sports a forward price-to-earnings (P/E) ratio of 29.8.
Should Wayfair, a Zacks Strong Buy, be on your short list?
Cisco was one of the best performing stocks of the 1990’s Internet boom. In 2026, this Zacks #1 (Strong Buy) is up 53.6%.
The analysts are bullish. Nine estimates have been raised on Cisco for fiscal 2026 in the last 60 days. Earnings are expected to rise 12.3% year-over-year. Nine estimates are also higher in the last 60 days for fiscal 2027 and earnings are expected to jump another 11.3%.
Cisco isn’t a cheap stock. It trades with a forward P/E of 26.6. A P/E over 20 is considered to be high. It also has a PEG ratio of 2.4. A PEG ratio looks at the P/E divided by growth. A PEG ratio under 1.0 indicates the company has both value and growth. Cisco’s PEG of 2.4 is high.
Cisco won’t report earnings again until Aug 2026.
Should Cisco be on your short list or is the good news now priced in?
What Else Should You Know About the Q2 Earnings Season?
View the Zacks #1 Rank List
Image: Bigstock
3 Strong Buy Stocks for this Red-Hot Earnings Season
Key Takeaways
Welcome to Episode #491 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, is joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to discuss the upcoming second quarter earnings season as well as three Zacks Rank #1 (Strong Buy) stocks that investors might want to keep on their short lists.
Get Ready for Q2 Earnings Season
Second quarter S&P 500 earnings are now expected to jump 24% year-over-year after surging 25.7% in the first quarter. This is on revenue growth expected to be 11.3%.
Excitement is building for this earnings season but some analysts have been raising estimates ahead of the reports. Zacks top ranked Strong Buy stocks reflect the analysts’ bullishness on those companies.
Some companies are already Strong Buys even before reporting their next earnings report.
These are three of those companies.
3 Strong Buy Stocks Ahead of Q2 Earnings Season
1. Ford Motor Co. (F - Free Report)
Ford Motor Co. is a Zacks Rank #1 (Strong Buy) stock ahead of its July 28, 2026, second quarter 2026 earnings report. Shares of Ford are up just 3.7% year-to-date after it gave up some recent gains.
Earnings are expected to jump 50.5% in 2026 and one estimate is higher for the second quarter in the last 60 days.
Ford is cheap. It trades with a forward price-to-earnings (P/E) ratio of just 8.2. A P/E ratio under 10 usually indicates a company is a deep value.
It also is shareholder friendly. Ford pays a dividend currently yielding 4.4%.
Should Ford Motor Co. be on your short list?
2. Wayfair Inc. (W - Free Report)
Wayfair, which describes itself as the destination for all things home, is transforming itself from an online home goods retailer to a dual threat of online and physical stores. Wayfair currently operates three physical stores and has announced five more.
Analysts are bullish about 2026 with two estimates higher in the last 60 days. Earnings are expected to rise 11.9% in 2026 and another 29.6% in 2027.
While shares are down 10.1% year-to-date, they have rallied over the last month, jumping 26.6%. Wayfair now sports a forward price-to-earnings (P/E) ratio of 29.8.
Should Wayfair, a Zacks Strong Buy, be on your short list?
3. Cisco Systems, Inc. (CSCO - Free Report)
Cisco was one of the best performing stocks of the 1990’s Internet boom. In 2026, this Zacks #1 (Strong Buy) is up 53.6%.
The analysts are bullish. Nine estimates have been raised on Cisco for fiscal 2026 in the last 60 days. Earnings are expected to rise 12.3% year-over-year. Nine estimates are also higher in the last 60 days for fiscal 2027 and earnings are expected to jump another 11.3%.
Cisco isn’t a cheap stock. It trades with a forward P/E of 26.6. A P/E over 20 is considered to be high. It also has a PEG ratio of 2.4. A PEG ratio looks at the P/E divided by growth. A PEG ratio under 1.0 indicates the company has both value and growth. Cisco’s PEG of 2.4 is high.
Cisco won’t report earnings again until Aug 2026.
Should Cisco be on your short list or is the good news now priced in?
What Else Should You Know About the Q2 Earnings Season?
Tune into this week’s podcast to find out.