Colgate-Palmolive is a consumer products company that has been recommended as a top pick ahead of its second-quarter earnings report on July 26. Analyst Dara Mohsenian highlighted the positive catalysts for Colgate-Palmolive, such as pricing power and share gains. The stock has already seen a 23% increase in 2024, but Mohsenian believes there is still room for growth. He emphasized the company’s corporate visibility and strong balance, which adds to the confidence in its sustainability. Additionally, Mohsenian pointed out the underappreciated potential in Colgate’s pet business, specifically Hill’s Pet Nutrition, as a key driver for future performance.
Analyst Erik Woodring has elevated tech giant Apple to a top pick status, citing the company’s innovative approach to generative artificial intelligence, known as Apple Intelligence. This technology is expected to be a major catalyst for device upgrades, particularly in the upcoming iPhone and iPad cycle. Woodring believes that investors are underestimating the impact of this upgrade cycle on Apple’s performance. The company is set to report its fiscal third-quarter results on Aug. 1, with shares already up 16.5% in 2024.
Cloud-scale applications software company Datadog is another stock recommended ahead of its earnings report on Aug. 8. Analyst Sanjit Singh acknowledged the recent dip in the stock’s valuation, down 8% in July. However, Singh remains optimistic about Datadog’s long-term prospects, citing strong execution in a challenging market environment. He also highlighted the company’s potential for margin upside and a pipeline of new products. Singh sees Datadog as a market leader in the infrastructure software space, with opportunities for sustained growth and attractive margins.
Spotify Technology has seen a surge in its stock price, thanks to earlier and larger than expected price increases in the US market. The company’s leading product position and underappreciated earnings power have led to an optimistic outlook from analysts. With a long runway for user growth and strong incremental margins, Spotify Technology is poised for further growth in the future.
Nu Holdings, the parent company of Nubank, has garnered attention for its potential to reach a US$100 billion valuation by 2026. Analysts see opportunities for accelerated growth in Brazil’s payroll loan book and promising progress in Mexico. The Open Finance agenda could further solidify Nu Holdings’ market position and drive faster market share gains.
These stocks present compelling opportunities for investors looking to capitalize on upcoming earnings reports. Analyst recommendations highlight the unique strengths and growth prospects of each company, making them attractive picks for those seeking to enhance their investment portfolios. While the stock market remains unpredictable, these top picks offer a glimpse into the potential winners of the earnings season.