3 Upgraded Stocks to Load Up on Before Earnings
MarketBeat’s screen for Most Upgraded Stocks is a never-ending source of good ideas. Stocks on the list today are receiving upgrades due to their results, turnaround efforts, and outlooks, which include growth, profits, and capital returns.
The only questions that need to be answered are which ones fit the portfolio, and how high their share prices may go.
Meta Platforms' Superintelligent Strategy
Meta Platforms' (NASDAQ: META) success story continues to unfold, now featuring a robust push into AI. Already using AI to drive revenue growth and internal efficiency, the company created a “superintelligence” division and is poaching staff from companies like Apple and OpenAI to run it.
The goal is to develop cutting-edge artificial intelligence technology, encompassing models, software applications, and hardware. Regarding the analysts, they are raising their price targets and sentiment ratings because of it, setting the market up for new highs.
Meta is the second-most upgraded stock at the end of Q2, and the trends are strong, including increasing coverage, firming sentiment, and an increasing price target. The price target lags behind the price action in early Q3 but provides robust market support, having risen more than 40% in the first half of the year, and recent revisions are leading to the high end of the range.
That puts META stock near $900, sufficient for new all-time highs and a 25% gain from early July trading levels.
The technical signals are more robust. The Q2 price action featured a significant price rebound, confirming the uptrend and setting a new all-time high. A move to new highs opens the door to another sustained rally with the potential to advance an amount equal to the rebound in place.
That puts this market near $950 and potentially heading higher. Meta’s AI push costs money but also generates ample cash flow, allowing it to pay dividends, increase its distribution, and buy back shares.
Dollar General Price Reversal Advances on Turnaround Results
Dollar General’s (NYSE: DG) 2025 is highlighted by the positive impact of its turnaround efforts and rationalization strategy. The company is in the process of accelerating its strategy, and analysts are responding favorably to the news. The trends in Q2 include increased coverage, a firmer sentiment, and positive price target revisions that confirm the sentiment shift that began earlier in the year.
The takeaway is that Dollar General’s analyst sentiment is firming to Moderate Buy from Hold, and the price target revisions are leading the market in its reversal.
Dollar General is set to report Q2 earnings in early September and will likely provide another catalyst for the market. Analysts forecast another mid-single-digit revenue growth offset by margin weakness, and are underestimating the company in both regards.
Leaning into digitization and easier-to-use stores is a recipe for unlocking store traffic, revenue, and margin. Investors should expect the company to outperform the consensus forecast and provide another substantial guidance improvement.
Wingstop Focuses on Unit Growth, Can Fly Higher
Wingstop (NASDAQ: WING) faces a headwind in 2025 that is impacting comparable store sales. However, unit growth and the lean into international markets are sustaining the growth outlook while building leverage for when macroeconomic headwinds reverse. The analysts’ response is to upgrade the stock and increase price targets, positioning it to reach a new all-time high by year’s end.
The H1 analysts' activity includes a 25% increase in coverage, solid coverage of nearly 25 analysts, a firming rating pegged at Moderate Buy, and a rising price target. The consensus in early Q3 forecasts a 10% upside for this stock; the high-end range puts it at a new all-time high, representing a more than 30% gain when reached.
Wingstop’s stock price rebound is also supported by its capital return program. The company pays a token distribution yielding less than 0.5% but compounds it with aggressive share buybacks. The buybacks in Q1 reduced the count sequentially and compared to the previous year and are expected to continue at a robust pace for the foreseeable future.
