As we move further into earnings season, Macquarie Group Ltd (ASX: MQG) has listed its three most-preferred ASX stocks. All three will announce their financial results this week.
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An earnings season preview
In a note to investors this morning, the broker said that share price reactions have been relatively positive so far. It also expects that earnings results do not suggest another momentum reversal in August.
"Earnings updates leading into results have been relatively positive in terms of the share price reactions. Of 9 updates we collated, 4 outperformed (HLO, PNV, DRO, MHJ) and 2 underperformed (FLT, VEA)", the broker said.
Macquarie added that so far, there has been a normal reaction to surprises. It explained:
February's results were marked by a momentum reversal that was evident in the early results. The recent market reactions show no such reversal. Stocks are moving in reaction to the positive/negative surprise in a more normal way.
In [June], we highlighted our momentum framework helped in positioning for earnings risks. In our Results Outlook (28 Jul 2025), we showed the approach also worked in US results. Over July, Stage 1 (bottoming) stocks have the best average relative return (+2.8%) after posting an earnings update, while also having modest upgrades to FY25 earnings (+0.6%). In contrast, Stage 4 stocks have the largest average underperformance (-2.3%) and the largest downgrades FY25 downgrades (-7.9%).
Macquarie's three most-preferred ASX stocks
Pinnacle Investment Management Group Ltd (ASX: PNI) is Macquarie's key buy idea for the week.
This morning, the PNI share price is in the green, changing hands at $22.59 a piece, up 2.78%.
Over the past month, the PNI share price is 9.56% higher, and is up 43.55% for the year.
Macquarie has an outperform rating and a $25.10 target price. At the time of writing, this represents a potential 11.1% upside for investors over the next 12 months.
"PNI is the key buy idea for Week 1, as it is rated Outperform, has momentum in Stage 1 and the Street has been upgrading FY26 earnings", the broker said in its note.
PNI is due to announce its results this afternoon.
QBE Insurance Group Ltd (ASX: QBE) is another of Macquarie's top picks for the week.
The QBE share price is also in the green this morning, trading 0.8% higher at $22.63 at the time of writing. Over the past month, QBE's share price is down 0.62%, but over the year, it is 37.14% higher.
Macquarie has a neutral rating on the stock and a $23.20 target price. At the time of writing, that represents a potential 2.5% upside for investors over the next 12 months.
QBE is expected to announce its results on Friday this week.
Centuria Industrial REIT (ASX: CIP) is also one of Macquarie's most preferred stocks for the earnings season.
At the time of writing, the CIP share price is 0.16% higher for the day, and changing hands at $3.185 a piece. Over the past month, CIP shares have gained 1.43%, and over the year, they are 3.91% higher.
Macquarie has a neutral rating on the stock and a $3.22 12-month target price. At the time of writing, that represents a potential 1.1% upside for investors.
"While rated Neutral, we also note QBE and CIP have momentum in Stage 2, plus FY26 upgrades", the broker said.
CIP is expected to announce its results on Friday.
