These two stocks could be your best buys ahead of earnings this week

A huge slate of earnings is on tap for this week, with almost 100 S&P 500 stocks set to unveil their fourth-quarter results, including many of the biggest tech stocks.

Traders are eyeing a few names in particular as attractive bets ahead of their results.

Max Wolff, market strategist at 55 Capital, has his eye on Amazon.

Slated to report results on Thursday afternoon, Amazon has enjoyed an incredible 40 percent gain over the past year. Still, the stock has underperformed quite substantially over the past three months, rising just over 2 percent while the S&P 500 has surged by nearly 8 percent.

"Amazon's gotten a little more shade than they deserve," Wolff said Friday on CNBC's "Power Lunch." Given his optimism about Amazon's consumer business as well as its red-hot cloud business, "I think that their February 2nd news will be really positive."

Positive or negative, the stock could see a substantial move on the event. Amazon shares are expected to rise or fall by more than 5 percent this week, based on the prices of short-term options.

Piper Jaffray technical analyst Craig Johnson has his eye on Facebook, which reports earnings on Wednesday afternoon. Like Amazon, the stock has been a big winner over the past year, but has outperformed in the past few months.

"We've had a nice up-trending slope in Facebook, and it looks like we've made a bit of a triple bottom recently," Johnson said Friday on "Power Lunch."

After that consolidatory period, if the social media giant manages to close above $135, it "opens us up for a whole 'nother leg high, and we think there's probably about 10 percent upside from here."

Facebook, which closed Friday at $132.18, is also expected to move a bit more than 5 percent on earnings, judging by options pricing.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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