The stock market is gearing up for the start of the Q1 2025 earnings season, which begins next week.
Indeed, the upcoming earnings season is among the most consequential, considering that Wall Street is battling uncertainty from ongoing trade tensions triggered by President Donald Trump’s tariffs.
Nevertheless, Finbold has identified Coca-Cola (NYSE: KO) and American technology giant Palantir (NASDAQ: PLTR) as two stocks to buy before the earnings season, as they show potential for continued growth.
Coca-Cola (NYSE: KO)
Coca-Cola’s strength lies in its dominance within the consumer staples sector. The stock has established a history of stability and consistent growth.
At the close of the last trading session, KO was valued at $71.43, having rallied over 15% year to date.
In the fourth quarter of 2024, Coca-Cola’s earnings topped forecasts, with adjusted EPS of 55 cents vs. 52 cents expected and projected revenue of $11.54 billion vs. $10.68 billion. Net income rose to $2.20 billion, or 51 cents per share, up from $1.97 billion, or 46 cents, a year earlier.
For 2025, Coca-Cola anticipates organic revenue growth of 5% to 6%. It also forecasts a 2% to 3% increase in comparable earnings per share despite facing a 6% to 7% currency headwind and minor impacts from acquisitions, divestitures, and structural adjustments.
Besides the strong forecast, Coca-Cola’s diversified portfolio, including brands like Fairlife Milk and Topo Chico, and its ability to navigate tariff-related cost pressures through alternative packaging strengthen its growth outlook.
Palantir (NASDAQ: PLTR)
Palantir ranks as a standout player in artificial intelligence (AI), having gained significantly over the past year.
The company beat Wall Street expectations in Q4 2024, posting adjusted EPS of 14 cents vs. 11 cents expected and forecasted revenue of $828 million vs. $776 million.
Palantir also issued upbeat guidance, projecting Q1 revenue between $858 million and $862 million, well above the $799 million estimate. For fiscal 2025, Palantir expects revenue of $3.74 to $3.76 billion, exceeding the $3.52 billion analyst consensus.
The firm’s government segment remains robust, supported by recent contracts like the $480 million Maven Smart System deal.
Meanwhile, Palantir’s commercial pivot is gaining traction, reducing its reliance on public-sector revenue. Despite its premium valuation, the technology giant is backed by its unique AI capabilities and a loyal customer base.
At the time of reporting, PLTR stock has gained 17% year to date, trading at $88.55.
While these stocks have growth potential and can navigate the tariff-impacted economy, lingering uncertainty about the end of the trade war between China and the U.S. remains a bearish factor.
Featured image via Shutterstock
