Earnings season is upon us. Companies of all types are set to report their financials and give business updates for the second quarter of 2022, and investors are eager to read and react to the news. There is a flood of information that comes down the pipe during these time periods, making it difficult for investors to decide what to focus on. That's why I think it is important for everyone to proactively decide what earnings reports you are going to read and analyze to better optimize your research.

Here are two cheap stocks investors should track this earnings season.

1. InterActiveCorp (IAC)

First up, we have InterActiveCorp (IAC -0.14%), or IAC for short. IAC emerged in its current form when the company named Barry Diller chairman and CEO back in 1995. Diller is still the chairman today, with protege Joey Levin named CEO back in 2015. The duo, along with other IAC executives, have stuck with the organization for a long time, which is rare in today's hyperkinetic corporate world. 

This longevity is important to note because of the culture of acquisition expertise IAC has built over the last 25 years. IAC is not an operating company, but a serial acquirer of (mostly) internet businesses. But unlike other conglomerates, IAC regularly buys, builds, and then spins out its operating businesses as their own publicly traded stocks. This has happened with Match Group, Expedia, Vimeo, and other stocks over the years. This strategy has outperformed the market since 1995, with IAC shareholders achieving 13% compound annual returns -- including the spin-offs -- compared to just 10% for the S&P 500. And this is with IAC stock down 45% this year. 

With Levin at the helm, I believe IAC is set up to continue with this acquisition success and keep building value for shareholders. But what makes the stock so compelling is how cheaply its shares trade at the moment. If we exclude the company's holdings in Angi, MGM Resorts, Turo, and Vivian Health and back out its net cash position, the stock has an enterprise value of $2 billion. Just one of its subsidiaries -- Dotdash Meredith -- believes it can generate $450 million in adjusted EBITDA in 2023. In my book, this makes the stock an easy buy here, especially when you consider management's track record of beating the market. 

2. Nintendo 

The second stock investors should track is Nintendo (NTDOY 0.27%). The video game stalwart owns some of the top entertainment brands in the world and currently trades at a dirt cheap valuation. These brands include Mario, Zelda, Animal Crossing, Pokémon, and others that keep gamers coming back and playing Nintendo games.

Unique to the gaming industry,  Nintendo makes both games and gaming hardware, creating a closed ecosystem for the majority of its titles. Right now, it is selling the Nintendo Switch, a hybrid handheld/console device. The Switch has sold 108 million units since its release in 2017, making it the top-selling gaming device over that timespan. Combining this with hit software titles like Mario Kart has helped Nintendo generate healthy profits in recent years.

For example, in the last fiscal year, which ended in March, Nintendo generated $4.9 billion in operating income. Its current enterprise value of $38.6 billion gives the stock a price-to-operating income (P/OI) ratio of 7.9, which is well below the market average.

The big risk with Nintendo is when it eventually moves on to the next-generation gaming device, whether it be another Switch or a whole different brand. If these don't sell, the company will likely see a fall in its profitability. While investors should consider this risk, I think at a P/OI below 8 you are well insulated even if Nintendo stumbles at some point this decade. If the company can continue pumping out close to $5 billion in annual operating profits, the stock will likely do well for shareholders in the next three to five years and beyond.