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Legend has it that Marco Polo once stood in the court of Kublai Khan and watched the night sky explode.
Fire arrows streak through the darkness. Explosions occurred throughout the palace. Strange devices slid across the floor, shooting sparks in every direction.
To a 13th century European traveler, it must have seemed like magic.
Historians still debate how true this story is. But we do know that the Chinese had been using early fireworks for centuries by then, first by throwing bamboo into flames, and later by packing gunpowder in paper tubes.
Americans may have gotten their fill of fireworks during the Fourth of July. But, judging by the earnings growth expected in the coming months, Wall Street may have a more exciting proposition up its sleeve.
Now, I know it may not seem that way after the recent market volatility. Iran-related headlines have unnerved investors, while sharp swings in artificial intelligence and data center stocks have made the trip seem particularly troubling at times.
But take a step back and look at the bigger picture.
Investors enjoyed strong gains in the first half of the year. The US economy remains resilient. AI investments continue to expand. And most importantly, We are entering what could be one of the strongest earnings environments that I can remember.
So, don’t let a few bumpy trading days scare you away from our opportunity. Earnings season has just begun, and results could be better than Wall Street is currently expecting.
per day Market 360In this article, I’ll explain why the foundation underneath this market remains strong, why corporate earnings are poised to deliver so many fireworks and how Precursor intelligence The system can help identify upcoming earnings leaders in the market before their strength becomes clear to Wall Street.
The foundation for a strong second half
The United States has emerged as a true economic oasis.
GDP grew at an annual rate of 2.1% in the first quarter. Growth slowed slightly in the second quarter, but is expected to accelerate again in the second half of 2026. Personally, I expect US GDP growth to reach an annual pace of at least 5% in the third quarter.
Adding the expected gains in AI productivity to those forecasts, it becomes easy to see why the US economy may continue to accelerate through the end of the year.
This strength has already begun to appear in the stock market.
The second quarter was the best-performing quarter for the Nasdaq and S&P 500 in six years. The S&P 500 rose 15%, the Dow Jones rose 13%, and the Nasdaq rose 21%. The small-cap Russell 2000 stock also jumped nearly 21%.
I think this is the best market environment we’ve seen since 1999.
At that time, the spread of the Internet unleashed a wave of business investment, productivity growth, and corporate profits.
Today, artificial intelligence creates a similar opportunity. Companies are pouring money into AI infrastructure, data centers, and the technology needed to run it. It is estimated that technology companies will spend about $750 billion on building artificial intelligence this year alone.
Beyond the power build-up itself, the resulting productivity gains could provide another big boost to economic growth.
In fact, I believe that the current AI boom could end up being stronger than the Internet boom of the 1990s.
I know the recent market volatility has made it easy to overlook this opportunity. But a few bad days don’t change the bigger picture…
Economic growth is expected to accelerate again. Building AI is still gathering momentum. More importantly, corporate profits are accelerating.
That’s why the foundation underneath this market remains strong.
Which brings us to the fireworks show investors should be watching now: earnings season.
The next fireworks show has just begun
The first quarter earnings season had its share of fireworks, but the second quarter will be even more impressive.
Consider this… Analysts expected the S&P 500 to post average earnings growth of 13% at the end of the first quarter.
The end result? 28.6%, as wave after wave of positive earnings surprises pushed results well above expectations.
We will likely see the same thing happen again in the second quarter.
Analysts expect S&P 500 earnings to grow 24.7%, according to FactSet.
If analysts underestimate results again, we can look forward to 30% earnings growth by the time all is said and done.
This is especially encouraging for fundamentally outperforming stocks. When companies beat estimates and raise guidance, Wall Street is forced to revise its forecasts, and institutional funds tend to follow. This can cause stronger stocks to rise sharply.
So please – pinch yourself. You are not dreaming. The opportunity is real, folks.
It’s time to grow and prosper, so let’s talk about how to find stocks that are likely to benefit.
How to spot the next earnings leaders early
Now, I want to make one thing clear. I am on a mission from God to help you get rich.
I don’t say that lightly. That’s why I focus on companies that are showing the first signs of accelerating sales and profits and buying pressure.
With earnings growth expected to strengthen through the rest of the year, these stocks could lead the next major move in the market.
The challenge, of course, is to identify these companies before their power becomes clear to the rest of Wall Street.
Rarely does a huge earnings report come out of nowhere. The underlying business often begins to improve before that growth is visible in the key results.
This is exactly why I designed it Precursor intelligence system: To track early fundamental and institutional signals that often appear before stronger earnings, upside guidance and a big stock move.
The goal is not to chase a stock after it has already achieved impressive results and captured the attention of Wall Street. It’s identifying potential earnings leaders while their growth stories are still taking shape.
This distinction may be particularly important in the coming months. A strong earnings environment can lift the broader market, but the biggest gains tend to come from companies whose fundamentals improve faster.
Precursor Intelligence helps me focus on those opportunities and separate companies with real earnings momentum from stocks that are simply feeding on market enthusiasm.
This is the edge that collapsed on me Latest special offer. I’ve also revealed the #1 stock to buy now, as well as one stock I think investors should avoid.
With earnings fireworks already underway, I highly recommend you watch the show now. You’ll see how PI can help identify potential earnings leaders before the next wave of results puts them on the rest of Wall Street’s radar.
sincerely,
Louis Navellier
editor, Market 360
note: the Precursor intelligence The system I told you about is about to get even better…
I’ve been thinking a lot lately about how everyday investors like you can use it the way I do – not just to look for individual indicators, but to look for broader patterns.
Which sectors are seeing the most upgrades? Which stocks show improving scores over time? Where is institutional money quietly moving to? In a sense, I’ve been asking the system these questions for decades — and it’s helped guide me toward the strongest opportunities.
I think we’re close to something that will radically change the way you interact – making it more intuitive, more powerful and more personal to your own wallet.
Stay tuned…
