NEW YORK (TheStreet) -- Going into this week I wasn't exactly sure of what to expect this second full week of earnings season.However, one thing that all investors should always expect is the unexpected, because surprises come in both positive and negative directions. In this article we are going to look at four companies that will be reporting on Thursday and see if we can anticipate correctly which side of the surprise to play. Ahead of these reports, I have buy recommendations on Google ( GOOG), Microsoft ( MSFT) and Verizon ( VZ) while I will be looking to unload shares of Chipotle ( CMG). Let's dive right in to it and see if you agree.
Meanwhile, it did show some deceleration in revenue growth -- something that has become apparent over the past two quarters. Its net revenue has shown a noticeable decline from 27.7% in Q4 2011 to 24.4% in Q1 2012. So investors would be wise to keep an eye on that area. Moreover, while it has done an excellent job managing a reduction in ad revenue, it has yet to provide additional details regarding its strategy in terms of its acquisition of Motorola ( MMI). From an investment perspective, I maintain that Google is one of those stocks that is a buy at any level. At its current level of $576, the stock is down 14% from its 52-week high of $670. I would be adding shares at current levels and buying more on any signs of weakness. The stock should easily cross the $600 mark before the end of the third-quarter on its way to at least one more 52-week high before the end of the year.
How it handles the Windows 8 launch will go a long way toward restoring some of the level of respect that it has lost over the years. But I think the best way to assess Microsoft and its value is on its performance this current quarter, rather than what the competition is doing. At a stock price of 30 and trading at a P/E of 9, value investors with 12-to-24 month investment horizons should consider giving the company a long look at current levels as any degree of success with Windows 8 can push the stock to $40 easily this year.
The company makes it easy to extend IT infrastructure into Verizon's cloud services. So from an investment standpoint investors have to be pleased that the company is still investing in its own network and realizing that in order to remain dominant it cannot afford to rest on its laurels. What's more, the company's earnings per share of 93 cents continue to outperform both AT&T ( T) as well as Sprint ( S) which generates 69 cents and negative $1.11 respectively. Even more noteworthy is that fact that when comparing Verizon's operating metrics and focusing on areas such as return on average assets and return on average equity, its performance far exceeds that of its peers by a significant margin. Furthermore, its beta value of 0.51 continues to be one of the lowest within the entire sector, making it one of the top performers when assessing risk/reward ratios. For these reasons, Verizon should be added at current levels and should be under heavy accumulation at any signs of weakness.