These 2 "Earnings Juggernauts" Are Stocks to Buy Ahead of Q4 Reports

Today, we're bringing readers two of the best stocks to buy in 2018. In fact, Money Morning Capital Wave Strategist Shah Gilani sees a confluence of positives for these two stocks and the overall markets as we enter the second week of 2018.

One of the biggest trends driving the market higher has been earnings. And with earnings season fast approaching, the timing is perfect for those looking to add positions in these two stocks.

stock to buyAs you know, one of the best methods for market-beating gains is correctly identifying major trends in the market.

That's precisely what Gilani has done for readers today...

"The easiest, smartest, and most financially rewarding way to play stocks and markets is by riding trends," Gilani said. "That's because trends tend to have longevity, and various momentum boosters can drive them faster and further in the direction they're going."

In fact, there is a whole subgroup of Wall Street experts that espouse nothing other than following the trend. We've all heard, "the trend is your friend."

No matter what your political affiliation, no matter what you thought of what might happen in the stock market after the election, there was no doubt whatsoever that the market made its decision in November 2016 that it wanted to run higher - much higher.

You can't argue with 71 record highs for the Dow Jones Industrial Average in 2017.

You also can't argue with the S&P 500 notching gains in every month of a year - the first time that ever happened. Plus, the streak was actually 14 straight months.

The market exploded higher in November 2016 and did not look back. That is the power of a trend.

And the two top stocks to buy we're recommending today will lead the markets in 2018...

Tax Cuts and Earnings Will Drive These Stocks to Buy Even Higher

Stocks rallied in anticipation of the sweeping tax cuts just enacted by Congress and signed by the president. Yet, the prospects for corporate tax cuts are only partially baked in. When individuals and corporations see these cuts affect their bottom lines, stocks should get another substantial boost.

Analysts estimate that the earnings per share for the S&P 500, projected to be $141 in 2018, will get an additional $10 per share boost now that the top rate is reduced from 35% to 21%.

More importantly, the big tech stocks that are leading benchmarks and exchange-traded funds will be repatriating hundreds of billions of dollars from overseas accounts when the one-time, 15.5% repatriation tax rate draws all that idle cash back home.

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What will corporations do with that windfall? Some of the cash will fuel R&D. Some will be used for acquisitions. And some will be returned to shareholders in the form of special dividends and share buybacks.

All of that naturally boosts share prices, especially for the two stocks to buy we're bringing you today.

Double-digit earnings growth in the S&P 500 drove stocks higher in 2017 and should continue to fuel their rise in 2018. When fourth-quarter 2017 earnings start coming out in mid-January, look for results that are even better than they were in Q3, which saw an across-the-board earnings growth of almost 11%.

Wall Street agrees and expects earnings in Q4 to be even better. Conditions remain favorable for companies with earnings growth momentum to continue to lead markets higher in 2018.

That's why Gilani just revealed his two favorite earnings growth juggernauts.

Both companies play perfectly into the 2018 narrative, feeding off tax cuts, global growth, and especially growing customer bases.

2 Stocks to Buy Now as Earnings Season Fast Approaches

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The first stock we're bringing you today is Inc. (Nasdaq: AMZN).

Amazon was one of those stocks that caused analysts to scratch their heads as it soared higher with no profits. Well, that has changed. And earnings have nowhere to go but up. CEO Jeff Bezos has indeed gotten the last laugh.

It's only going to expand its reach, earnings, and profitability. It is also the third-largest stock in the United States by market cap, behind only Apple Inc. (Nasdaq: AAPL), Alphabet Inc. (Nasdaq: GOOGL), and Microsoft Corp. (Nasdaq: MSFT). That means it has the muscle to accomplish its goals.

We all know what happens to an industry when Amazon enters it. Complete domination.

Just ask retailers. Or meal kit companies. Or streaming services.

And prescription drug sellers are girding for the onslaught. Amazon also has an eye on fashion.

Even home improvement retailers, which are giant companies themselves, worry what will happen if Amazon attacks there.

You can buy flying drones from Amazon, but what makes package delivery services quake in their boots is that Amazon Prime Air promises to deliver your drones and all your purchases via drones in 30 minutes. Of course, there are plenty of hurdles here before the service goes live. But that's what they say about all new technology. The regulators will eventually catch up.

Gilani would not be surprised to see 30% to 50% gains over the coming year in Amazon stock.

The second stock we have today is Facebook Inc. (Nasdaq: FB).


Why the Facebook Stock Price Will Rise

This behemoth now has over 2 billion users, and just think about how many people that can reach. Advertisers are in love with that kind of power.

Gilani also believes healthcare is going to make FB unstoppable and a trillion-dollar company. That's on top of the tens of billions the company makes selling ads. It may not conquer the world, but it sure will be close.

Still, the company is much more than that. It is also a force in the up-and-coming e-sports industry - online sports and gaming using virtual reality.

While there are dozens of small and not-so-small virtual reality companies trying to stake their claims, Facebook is the one with true lasting power. The company owns the Oculus Rift VR headset.

The virtual world creates a strong bond between players and their fans. After all, teams will battle it out wearing VR headsets while fans at home can join the action from the comfort of their couches using the same equipment that puts them in the center of the action.

Last summer, Facebook announced it was working with Hollywood studios to begin producing original TV content for its platform. Facebook also said they are willing to commit to production budgets as high as $3 million per episode, which is comparable to high-end, cable-TV programming. It seeks to target audiences from 13 to 34 while avoiding politics, news, nudity, and improper language.

This is one of those big, bold moves that can pay off handsomely once it takes hold.

Facebook is just one of those companies that gets it.

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