4 Stocks With More Than 35% Upside to Buy After Q2 Earnings

The second-quarter 2026 earnings season has shaped up to be stronger than initially expected. According to the Aug. 12 Earnings Scorecard, 451 S&P 500 companies, representing 90.2% of the index, had reported second-quarter results, with aggregate earnings rising 41.6% year over year on 14.7% higher revenues. Moreover, 83.4% of the companies beat EPS estimates and 76.5% surpassed revenue estimates.

The strength has extended beyond a single industry. Per the report, S&P 500 earnings are expected to increase 43.3% year over year in the second quarter, with 13 of the 16 Zacks sectors posting positive earnings growth. Energy, Basic Materials, Technology, Industrial Products, Aerospace and Utilities are among the sectors showing particularly strong growth.

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Against this backdrop, four stocks from different industries stand out for their 35% or greater potential upside based on short-term Zacks price targets. These are SanDisk Corporation SNDK, Pagaya Technologies PGY, NeoVolta, Inc. NEOV and Grupo Aeroméxico S.A.B. de C.V. AERO).

The four stocks offer exposure to different areas of the market — technology, financial technology, energy storage and the airline industry — providing investors with multiple ways to participate in growth trends following the June 2026 earnings reporting season.

Our Picks

SanDisk: The company delivered a strong fiscal fourth quarter ended June 2026, beating the Zacks Consensus Estimate on both earnings and revenues, supported by robust demand for storage tied to AI infrastructure. SanDisk expects its New Business Model agreements to cover about 50% of its fiscal 2027 bit shipments, giving the company greater visibility into demand while reducing its dependence on volatile spot-market sales. SanDisk is also advancing its NAND roadmap, including BiCS10 QLC and High Bandwidth Flash (HBF) aimed at AI inference workloads. The company expects mid-to-high-teens annual revenue growth in fiscal 2028-2030, with roughly 80% adjusted gross margins and 50% adjusted free-cash-flow margins.

Based on short-term price targets offered by 21 analysts, the average price target for Sandisk represents an increase of 40.37% from the last closing price of $1,528.11. The stock sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 (Buy) or 3 (Hold) offer the best upside potential.

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Pagaya: It is a global financial technology company that uses machine learning, proprietary data and AI-driven technology to help financial institutions expand access to consumer credit and other financial products. PGY delivered a strong second-quarter 2026, beating the Zacks Consensus Estimate on both earnings and revenues. Total revenues and other income rose 19% year over year to $387 million, while network volume increased 33% to a record $3.5 billion.

Adjusted EBITDA climbed 43%, prompting the company to raise its full-year 2026 net-income outlook to $155-$180 million. Pagaya expects third-quarter network volume of $3.425-$3.625 billion and revenues of $370-$390 million. Its longer-term strategy includes expanding its lender network, increasing product adoption and leveraging its AI-driven platform and data advantage to build a scalable, balance-sheet-light financial ecosystem.

Based on short-term price targets offered by 11 analysts, the average price target for Pagaya represents an increase of 35.97% from the last closing price of $21.46. The stock sports a Zacks Rank #1 and has a Growth Score of A.

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NeoVolta: It is a U.S. energy technology company developing battery-storage solutions for residential, commercial and utility-scale applications. The company continues executing its strategy to build an integrated energy-storage platform, with its Georgia manufacturing facility on track for a third-quarter 2026 production ramp and designed for 2 GWh of initial annual capacity, scalable to 8 GWh. NeoVolta secured a $1.9 million first C&I purchase order from Luminia and entered an Letter of Intent with Infinite Grid Capital covering approximately 1.1 GWh of utility-scale projects.

Based on short-term price targets offered by three analysts, the average price target for NeoVolta represents an increase of 171.22% from the last closing price of $3.44. The stock carries a Zacks Rank #2.

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Aeromexico: It is Mexico’s flagship airline, operating a broad domestic and international network. In the second quarter of 2026, the company posted revenue growth of 12.6% year over year, while achieving an 18% adjusted EBITDAR margin and a 5% operating margin.

Aeromexico expects third-quarter 2026 revenues of $1.59-$1.62 billion and fourth-quarter revenues of $1.64-$1.68 billion. Full-year revenues are projected to be in the range of $6.05-$6.12 billion. Capacity is expected to increase 6.5%-8% in the fourth quarter, supporting continued growth while management remains focused on network optimization and operational efficiency.

Based on short-term price targets offered by six analysts, the average price target for AERO represents an increase of 68.45% from the last closing price of $15.85. This stock carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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