Earnings Momentum Builds with 5 Stocks That Could Drive the Next Leg Higher

Markets continued to grind higher this week as earnings season gained traction.

Investors are no longer reacting to broad macro headlines as much as they are positioning ahead of company-specific catalysts.

Wednesday’s session yesterday showed as much.

After an early dip on speculation around Jerome Powell’s future, stocks recovered once President Trump said he was not planning to fire the Fed Chair.

Traders appear increasingly focused on bottom-line results and forward guidance. The early read from major banks and bellwether companies is cautiously optimistic.

Goldman Sachs and Bank of America reported strong trading revenue. United Airlines, on the other hand, missed estimates.

Upcoming reports from tech giants and consumer names may help set the tone for the rest of July.

With markets teasing around all-time highs and more clarity emerging on inflation and retail sales trends, investors are closely watching to see which names will outperform on earnings and outlooks.

Here are five stocks we’re watching following Thursday’s close.

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Bank of America | BAC

Price: $47.06

Bank of America joined the earnings beat parade with a solid second-quarter report.

Profit came in at $7.1 billion, a 3 percent increase from the same period last year, while revenue from trading activities jumped 15 percent.

The biggest highlight was the strength in fixed income, currency, and commodities trading, which rose 16 percent year-over-year.

BofA’s equities trading unit also delivered a 10 percent gain, benefiting from elevated volatility and client repositioning.

CEO Brian Moynihan noted continued resilience in consumer spending and an uptick in commercial borrowing, suggesting that credit quality and macro conditions are holding steady for now.

The bank's 2.26 percent dividend yield and stable capital position make it a staple among dividend investors, even as the broader financial sector remains under pressure.

With analysts predicting a rebound in dealmaking later this year, BofA’s diversified business model may provide a cushion if macro volatility picks up again.

Watch for further updates when other big banks report.

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Marathon Digital Holdings | MARA

Price: $19.98

Marathon Digital just expanded its Bitcoin strategy in a big way. The company announced a $20 million investment in Two Prime, an SEC-registered digital asset manager.

As part of the deal, Marathon is ramping its BTC allocation to 2,000 coins, aiming to generate yield through institutional strategies rather than passive holding.

This move signals a broader shift in how crypto-focused companies are thinking about capital deployment.

By leveraging its treasury assets, MARA aims to transform Bitcoin into a yield-generating tool, one that aligns more closely with traditional portfolio strategies than speculative trading.

The company’s strategic partnership with Two Prime, which Susquehanna Crypto also supports, provides it with access to infrastructure designed for risk-managed returns.

This approach may appeal to institutional investors seeking disciplined crypto exposure.

MARA is up nearly 13 percent this year, and with institutional Bitcoin demand on the rise, the stock could continue to serve as a bellwether for how digital assets integrate into mainstream financial frameworks.

Unity Software | U

Price: $36.50

Unity surged this week after Jefferies raised its price target to a Street-high of $35, citing strong traction in the company’s Vector product and meaningful improvements in return on ad spend.

Analysts have highlighted that Unity’s Create segment is gaining momentum, with Unity 6 now nearing a 50 percent adoption rate among developers.

That growth is translating into upward revisions in both revenue and EBITDA forecasts for 2025 and 2026.

Jefferies now expects Unity’s Grow segment to return to positive growth next year after a previous contraction estimate. They also increased 2025 EBITDA estimates by 11 percent.

The optimism is not theoretical. Unity shares are up nearly 40 percent year-to-date, as the market grows more comfortable with the company’s turnaround story.

If execution continues and adoption of newer products, such as Vector, expands, Unity could emerge as a top pick in the gaming and creative software space.

The company’s next earnings call will be key in confirming whether these tailwinds are sustainable.

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Goldman Sachs | GS

Price: $706.12

Goldman Sachs delivered a strong second-quarter earnings report, driven by a 22 percent surge in trading revenue.

Total profit rose to $3.72 billion, or $10.91 per share, beating analyst expectations and marking one of the firm’s best quarterly performances in years.

Equities financing and fixed income lending drove the upside, highlighting Goldman's growing focus on generating recurring revenue from institutional clients.

What matters now is whether this momentum can continue. Goldman’s leadership highlighted improved M&A activity and IPO interest, particularly in larger deal sizes.

That could bode well for the firm’s investment banking arm in the second half of the year.

CEO David Solomon acknowledged the market’s complexity but emphasized that client engagement remains strong across the board.

While shares have already risen more than 23 percent year-to-date, some analysts believe the stock still trades at a reasonable valuation relative to forward earnings.

For investors seeking to capitalize on any continued uptick in capital markets activity, GS could remain a key name to monitor this quarter.

PG&E Corporation | PCG

Price: $13.28

PG&E just posted a major win on the environmental front.

The utility announced a 42 percent reduction in methane emissions from its gas pipeline system, exceeding California’s 2025 target five years ahead of schedule.

This is part of PG&E’s broader strategy to reach net-zero emissions by 2040 and become “climate positive” by 2050.

Investors have been cautious about PCG this year, with shares down over 34 percent year-to-date. However, these latest developments could help shift sentiment.

The emissions reduction was achieved through improved leak detection, faster repair schedules, and the use of advanced mitigation technologies.

This reflects real operational progress, not just promises.

With a modest dividend and ongoing regulatory scrutiny, PG&E remains a complex investment story.

However, its leadership on environmental compliance and infrastructure upgrades may help restore investor confidence over time.

Keep an eye on its Q2 earnings report and any updates on wildfire-related liability management.

With earnings season heating up, traders are paying less attention to macro noise and more to corporate execution.

The recent results from Goldman Sachs and Bank of America suggest that Wall Street's biggest players are navigating this environment effectively, while names like Unity and Marathon Digital offer forward-looking growth stories that are just beginning to unfold.

This is the part of the earnings cycle where the market begins to reward preparation over reaction.

Investors who track company fundamentals and anticipate where earnings momentum might build have the opportunity to act before the crowd.

Names like GS, BAC, and MARA are already delivering upside, but Unity and PG&E could surprise on the next leg.

Stay selective, stay nimble, and focus on names where catalysts are still unfolding.