These three stocks have a strong chance of topping Wall Street estimates, says FBB’s Mike Bailey
Google parent-company Alphabet is among a handful of stocks that could surprise to the upside when it reports earnings later this month, according to FBB Capital Partners director of research Mike Bailey. Alphabet stock was one of three companies that Bailey said he’s watching on ” Power Lunch ” on Friday. Danaher Danaher also has a track record of beating earnings estimates, Bailey said. Still, the life sciences stock has slipped nearly 11% so far in 2025. Bailey pinned some of its past struggles on difficult comparisons coming out of the Covid-19 pandemic as well as some “misses” with acquisitions. However, he expects trends are turning, settin up for an earnings beat on July 22, he said. DHR YTD mountain Danaher stock in 2025. “The reason I think it’s a good name to own into earnings season is really fewer distractions could drive more earnings,” Bailey said. “As they work through some of these issues, along with tariffs … it does seem like this game of whack-a-mole could be coming to an end and they could have some good results in Q2.” Progressive Progressive stock has ticked up more than 2% so far this year. The insurance company is set to report second-quarter results on Wednesday. The bar for earnings estimates is low, said Bailey, which could help Progressive notch an earnings beat. “At this point, I think we’re in pretty good shape. If you look back at the last two months, Wall Street only took up estimates basically in-line with how good April [and] May was,” Bailey said. “They really haven’t taken things up, so June doesn’t look that aggressive.” PGR YTD mountain Progressive stock in 2025. “However, we could be looking at 60%, 70% earnings growth quarter-over-quarter out of a car insurance company that just almost boggles the mind.” Alphabet Stock in the Google-parent company has pulled back roughly 5% so far in 2025. Some of the lingering questions about Google search performance could get answered when the company reports its results on July 23. Investors also want to see strength in its cloud and YouTube segments, which should drive a strong quarterly result. GOOGL YTD mountain Google stock in 2025. “The theme of this quarter is all about competition — in particular AI competition,” Bailey said. “The other stuff at Alphabet is doing pretty well … [but] looking at those paid clicks, that is very critical.” “It is kind of a question, but I think given everything else at Alphabet that’s working well, margins have also been helping them out, I do think that’s something that’s going to push them over the finish line. If you look at the track record, very good job historically in terms of beating quarterly expectations, so we do see another good result coming up here in a few weeks,” he said.
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