Reports

Unlocking Silver’s Upside: 3 Stocks to Track Amid Surge

October 22, 2024

The precious metals market has been buzzing this year, with both silver and gold showing impressive returns. Silver, in particular, has returned almost 40% year-to-date, but recent technical analysis indicates it may have more room to run. With key support and resistance levels lining up, and long-term momentum building, silver could outperform gold in the weeks ahead. Below are three silver-related stocks that are worth keeping an eye on, especially as silver appears poised for a potential breakout.

Pan American Silver (PAAS)

Strong Earnings Growth in the Silver Surge

Pan American Silver has benefitted significantly from the recent rise in silver prices, with the metal trading around $33 an ounce. PAAS has surged due to a confluence of factors, including rising tensions in the Middle East, safe-haven demand, and positive economic data from China that has boosted silver’s demand outlook. Analysts expect the company to report strong earnings in its upcoming quarterly report, with an EPS forecast of $0.22—representing a year-over-year increase of 2100%. The company’s revenue is also projected to rise by 18.4%, hitting $729.87 million. These impressive earnings expectations, along with a recent 6.5% upward revision in EPS estimates, make Pan American Silver a stock to watch as the silver market heats up.

Silvercorp Metals (SVM)

Production Gains and Rising Revenues

Silvercorp Metals has seen its shares rally in recent weeks, thanks in part to strong production numbers. The company reported a 26% increase in revenue year-over-year, totaling $68 million for the second quarter of fiscal 2025, ending September 30, 2024. Silvercorp’s silver production rose 4% to 1.7 million ounces, while zinc production jumped 26% compared to the same quarter last year. While lead production dipped by 18%, the overall silver equivalent production remained robust at 1.8 million ounces. With a strong operational quarter behind them and rising commodity prices, Silvercorp could continue its upward momentum in the near term.

First Majestic Silver Corp (AG)

Increased Silver Equivalent Production and High-Grade Discovery

First Majestic Silver has had a productive third quarter of 2024, producing 5.5 million silver equivalent ounces, a 4% increase from the prior quarter. The company’s exploration efforts have also yielded promising results, with the discovery of a new high-grade gold and silver vein system at its Santa Elena property. Furthermore, First Majestic has taken control of the silver bullion process by opening First Mint, LLC in Nevada. This state-of-the-art minting facility allows the company to refine and sell its own silver products, giving it greater control over production costs and distribution. With 72% of its revised 2024 production guidance already achieved and ongoing expansion efforts, First Majestic looks well-positioned to benefit from further silver price gains.

Silver’s Breakout Potential: What to Watch For

Silver’s performance in 2024 has been stellar, but it appears to be setting up for even stronger gains as technical factors point toward a breakout. With key support at $29.60 and resistance near $34.00 for SLV (iShares Silver Trust), silver is positioned to outperform gold in the near term. Keep an eye on these silver-related stocks as the market reacts to both geopolitical tensions and broader macroeconomic trends, which could provide the next leg up for silver prices.

Gold Stocks Watchlist: Key Players Set to Benefit as Gold Continues to Rally

Editorial Staff

October 21, 2024

With gold prices recently hitting an all-time high of $2,734 per ounce, the precious metal has gained more than 32% year-to-date. This surge doesn’t show signs of slowing down, and with gold’s potential to reach $3,000 by 2025—fueled in part by expectations of lower interest rates from the Federal Reserve—gold stocks could present some attractive opportunities for investors. As gold’s momentum continues, a few key producers are positioned to benefit in both the short and long term. Let’s take a closer look at some companies worth watching.

Gold Fields (NYSE: GFI)
Strong Growth Prospects from Key Mine

Gold Fields is one stock we’re particularly excited about, given its recent momentum and strong fundamentals. Bank of America recently reinstated coverage of the stock with a buy rating and a price target of $16, implying 13% upside over the next 12 months.

One of the key reasons Gold Fields stands out is its Salares Norte mine in Chile, a project with huge potential. Despite facing initial challenges from the Covid-19 pandemic and macroeconomic hurdles, this mine is expected to become a highly cash-generative asset. By FY2026, Salares Norte could account for 22% of the company’s total production. This marks a significant boost to Gold Fields’ portfolio, adding another source of steady gold production for the company.

In addition to Salares Norte, Gold Fields is also set to benefit from its recent acquisition of Osisko Mining. This deal gives Gold Fields 100% ownership of the Windfall underground project in Quebec, which has the potential to produce nearly 300,000 ounces of gold per year. The company has a strong track record of investing in sustainable mining practices and forward-looking projects, making it a solid long-term play.

Barrick Gold (NYSE: GOLD)
Diversified Portfolio and Major Growth Catalysts

Another stock to keep an eye on is Barrick Gold. Barrick continues to be a major player in the gold mining space, with a diversified portfolio of assets across several countries. Its consistent gold production and steady cash flow make it one of the most reliable names in the sector. Barrick’s projects span North and South America, Africa, and the Middle East, offering investors exposure to both mature and developing markets.

Barrick has also been focusing on growing its copper portfolio, which adds a diversification angle that could further strengthen its business model. While gold remains its core focus, the company’s efforts to expand its footprint in copper, especially as demand for the metal increases with the global push toward renewable energy, add another layer of potential upside for investors.

On the financial side, Barrick’s balance sheet remains strong, with a commitment to maintaining a low debt level and returning capital to shareholders through dividends. As gold prices continue to rise, Barrick’s strong production and disciplined financial management put it in an ideal position to capitalize on the current market environment.

Newmont Corporation (NYSE: NEM)
World’s Largest Gold Miner with Steady Cash Flow

Newmont is the world’s largest gold mining company, and it remains one of the most solid names in the space for long-term investors. The company’s ability to generate steady cash flow, even during periods of market volatility, makes it a key stock to watch. Newmont operates in several safe mining jurisdictions, such as North America and Australia, giving it geographic stability in an often unpredictable industry.

Newmont has a strong pipeline of projects, including the Yanacocha Sulfides project in Peru and expansions at its Tanami and Ahafo operations. These projects are expected to add significant production capacity in the coming years, helping Newmont maintain its position as a leader in the industry.

Additionally, Newmont’s commitment to sustainability and its leadership in responsible mining practices set it apart from many of its peers. As investor interest in ESG (Environmental, Social, and Governance) factors continues to grow, Newmont’s efforts in this area could help it attract more capital in the future.

Three Strong Conviction Buys for the Week Ahead

Editorial Staff

October 20, 2024

In the ever-shifting landscape of the stock market, separating the wheat from the chaff is no easy feat. It’s a world where the wrong picks can erode your hard-earned gains, but the right ones? They have the power to catapult your portfolio to new heights. With thousands of stocks in the fray, pinpointing those poised for a breakthrough can feel like searching for a needle in a haystack.

This is where we step in. Every week, we comb through the market’s labyrinth, scrutinizing trends, earnings reports, and industry shifts. Our goal? To distill this vast universe of stocks down to a select few – those unique opportunities that are primed for significant movement in the near future.

This week, we’ve zeroed in on three standout stocks. These aren’t your run-of-the-mill picks; they are the culmination of rigorous analysis and strategic foresight. We’re talking about stocks that not only show promise in the immediate term but also hold the potential for sustained growth.

Walmart (NYSE: WMT) E-commerce and Omnichannel Innovations Driving Continued Growth

Walmart has been on a strong run in 2024, with its stock advancing over 54%. While the stock is already up significantly, there’s still potential for more upside in the coming months, particularly with the holiday shopping season just around the corner. Bank of America sees an additional 5% growth ahead, with a price target of $85 per share.

One of the key factors driving Walmart’s success is its commitment to improving its e-commerce business. The company has made major strides with faster delivery options, ongoing store renovations, and a growing membership service through Walmart+. These enhancements are positioning Walmart as a leader in the omnichannel space, seamlessly blending the physical and digital shopping experiences for consumers.

What really sets Walmart apart is its ability to capitalize on the growing trend of online spending, especially as we approach the holiday season. With a shorter selling season this year—there are five fewer days between Thanksgiving and Christmas compared to last year—Walmart’s broad range of convenient fulfillment options, including next-day delivery and curbside pickup, are expected to attract more customers. As Bank of America’s Robert Ohmes points out, larger digital players like Walmart are well-positioned to benefit from this shift.

For investors, Walmart’s continued focus on enhancing its digital infrastructure and its growing membership base through Walmart+ should provide a strong foundation for sustained growth. As we move into the holiday season, Walmart is one to watch.

Ally Financial (NYSE: ALLY) Well-Positioned for Long-Term Growth in a Shifting Market

Ally Financial is a stock that’s starting to stand out as a solid long-term play. The company, which specializes in auto lending and online banking, is expected to benefit from its ability to reposition its portfolio and grow its total book value by an estimated 25% by the end of next year.

One of the key factors driving this opportunity is the company’s asset mix. While Ally faced challenges with its 2022 auto loans, this asset class has a short duration, meaning it won’t be a burden beyond 2025. Importantly, the performance of Ally’s 2023 and 2024 auto vintages is expected to improve significantly, creating a healthier balance sheet moving forward.

Ally’s ability to weather the short-term storm while positioning itself for better performance in the near future makes it an intriguing option for investors. According to Citi analysts, Ally is “one of the best-positioned liability-sensitive names” in the current market. The anticipation surrounding the company’s upcoming third-quarter results—particularly any updates on credit loss outlook—could be a catalyst for revaluation by the market.

Currently, Wall Street is somewhat split on Ally Financial. Out of 21 analysts, 10 have rated it a “buy” or “strong buy,” 8 have neutral ratings, and 3 have given it an underperform rating. That said, improving credit performance and the potential for better-than-expected quarterly updates may bring more bulls to this name.

With all of these factors in mind, Ally Financial seems to be a strong pick for those looking for a company that can weather short-term volatility while setting itself up for a more stable future. If the company continues to improve its auto loan performance and gets rewarded with a higher valuation, now might be the perfect time to take a closer look.

Vista Energy (NYSE: VIST) A Promising Energy Stock with Room to Grow

Vista Energy is showing strong potential for continued growth, driven by its impressive production outlook and strategic expansion efforts. The company recently received an upgrade from UBS, which raised its rating to buy from neutral and increased the price target by $5 to $60, suggesting a nearly 32% upside from the current price. This upgrade reflects growing confidence in Vista’s ability to execute its development plan, particularly in Argentina’s Vaca Muerta oil deposit, one of the largest shale oil and gas reserves in the world.

Vista has been proactive in ramping up production, securing additional equipment, and adding more wells to accelerate its growth. Notably, the company expanded its partnership with SLB in June and signed a contract with Nabors Industries to add a third drilling rig, scheduled to begin operations in the second half of this year. These strategic moves are expected to boost Vista’s production capabilities and drive further growth in the coming quarters.

Brent crude prices, forecasted to average around $75 per barrel from the fourth quarter onward, are expected to support this production increase. Vista’s breakeven point is much lower, around $50 per barrel, giving it a significant margin to capitalize on higher oil prices. This low breakeven price enhances Vista’s profitability and positions it well against potential market fluctuations.

Despite shares rising over 54% this year, analysts believe Vista’s production potential remains undervalued by the market. Seven out of nine analysts covering the stock have issued buy or strong buy ratings, emphasizing the broader positive sentiment around Vista’s growth trajectory. With its robust production strategy, favorable market conditions, and strong analyst support, Vista Energy stands out as a compelling opportunity for investors seeking exposure to the energy sector.

REITs Raining Cash: Top 3 Ultra-High-Yield Divdend Stocks to Buy & Hold Forever

Editorial Staff

October 19, 2024

Investing in ultra-high-yield dividend stocks can be one of the most powerful tools to generate consistent passive income over time. These investments have the potential to provide cash flow that not only keeps up with inflation but can also significantly outperform more traditional fixed-income options like bonds. However, picking the right high-yield stocks requires a balance between high returns and sustainability, especially since not all ultra-high-yield stocks are created equal. In this article, we delve into three such stocks that stand out for their resilience, potential growth, and extraordinary dividend yields: W. P. Carey Inc. (NYSE: WPC), EPR Properties (NYSE: EPR), and ARMOUR Residential REIT (NYSE: ARR). Each stock presents a unique opportunity for investors looking to bolster their income portfolios with a strong yield.

1. W. P. Carey Inc. (NYSE: WPC)

W. P. Carey Inc., established in 1973, is one of the largest and most diversified net-lease REITs in the world. It specializes in owning high-quality commercial real estate, including industrial, warehouse, office, and retail properties. WPC’s strength lies in its diversification across property types, with a strong emphasis on long-term leases to creditworthy tenants, which provides stable and predictable income.

In 2024, WPC offers an impressive dividend yield of approximately 7.5%, and it has a long history of increasing its dividends for over two decades. Even during challenging periods, such as the COVID-19 pandemic, WPC was able to maintain its dividend, thanks to its inflation-linked leases and a portfolio that includes recession-resistant tenants such as logistics companies and essential retailers. This kind of resilience makes it a favorite among dividend investors. Furthermore, WPC’s unique blend of both domestic and international properties mitigates some of the risks associated with region-specific downturns

Recently, W. P. Carey has faced pressure from rising interest rates, which has led to a slight dip in its stock price. However, this presents a potential buying opportunity for long-term investors. The company’s cash flow remains robust, and its prudent capital allocation strategy ensures that its dividend is sustainable for years to come. Analysts forecast that WPC will continue to outperform many of its peers due to its diversified asset base and inflation-protected lease structures

2. EPR Properties (NYSE: EPR)

EPR Properties is a specialized REIT that primarily focuses on experiential real estate, including movie theaters, water parks, ski resorts, and other entertainment and educational facilities. What makes EPR so attractive is its focus on niche markets that cater to a consumer demand for experiences over goods. This shift towards experiential consumption has been a significant tailwind for the company, even as traditional retail has struggled.

In 2024, EPR boasts a dividend yield of around 8.5%, making it one of the highest in the sector. EPR was hit hard during the pandemic, especially as its tenants—movie theaters and amusement parks—temporarily shuttered operations. However, with the resumption of normal activities, EPR’s properties have bounced back, and its tenants have shown resilience. The company has a well-diversified portfolio of over 200 tenants, reducing its reliance on any single source of income. Additionally, the entertainment sector is seeing a strong resurgence as consumers prioritize experiences

Another positive factor is EPR’s long-term leases, many of which include percentage rent clauses, meaning the company earns a portion of its tenants’ revenue. This setup allows EPR to benefit from its tenants’ growth, particularly in a rebounding post-pandemic economy. Though there are still risks associated with consumer spending trends and potential recessions, EPR’s emphasis on the entertainment and recreation sectors positions it to benefit from pent-up demand

3. ARMOUR Residential REIT (NYSE: ARR)

For those looking for a pure-play on high yields, ARMOUR Residential REIT (NYSE: ARR) stands out with its extraordinary dividend yield of over 14%. ARR is a mortgage REIT that invests in residential mortgage-backed securities (MBS). Essentially, ARMOUR borrows at low short-term rates and invests in higher-yielding long-term MBS, pocketing the difference between these rates. While the company’s payout ratio is higher than ideal, ARMOUR’s monthly dividend payouts provide consistent cash flow for investors

ARR’s dividend yield is among the highest in the REIT sector, but this comes with increased volatility. Mortgage REITs like ARR are highly sensitive to changes in interest rates, and the company’s income depends heavily on the spread between short-term borrowing costs and long-term mortgage rates. The Federal Reserve’s interest rate policy plays a critical role in ARMOUR’s profitability. With rising rates in 2024, ARMOUR has faced pressure, but its experienced management team has shown the ability to navigate such environments. Its strategy of leveraging hedges to manage interest rate risk has helped maintain a substantial dividend, even during periods of market volatility

Investors should note that while ARR’s dividend yield is highly attractive, the stock is inherently more volatile than traditional equity REITs. However, for those willing to stomach short-term price fluctuations, ARR can provide a robust income stream with its monthly dividends and high payout.

In the world of dividend investing, it’s crucial to strike a balance between high yields and the sustainability of those payouts. W. P. Carey, EPR Properties, and ARMOUR Residential REIT offer compelling opportunities for income-focused investors, with yields ranging from 7.5% to over 14%. These companies have demonstrated resilience in different economic environments and sectors, providing investors with the potential for both income and growth.

As a firm believer in the power of dividend investing, I see these ultra-high-yield stocks as valuable components of a long-term, income-generating portfolio. Dividend investing is not just about earning income today—it’s about securing a future where compounding returns can significantly accelerate wealth accumulation. Reinvesting dividends and holding for the long haul can lead to exponential growth in a portfolio’s value, making it one of the most effective strategies for achieving financial independence.

Watch this before it gets removed

Editorial Staff

October 18, 2024

Dear Fellow American,

Last week, we asked you a simple question:

Which side of the coming election crisis will you be on?

On one side will be the people who watched Porter Stansberry’s urgent briefing and were able to not only protect their wealth and savings but grow them significantly too.

On the other side of the chasm, you’ll have those who buried their heads in the sand. The ones who said that can’t happen here, not in America.

As you’ll discover here though, it can happen… it will happen… and it has happened several times before.

Each time, the financial world was ripped in two. Fortunes were made by those on the right side and fortunes were lost by those on the wrong side.

Now is the time to decide.

Breaking Point 2024 won’t be available online for long.

If you haven’t watched it yet, now is the time to do so, before it’s too late and you’re left on the wrong side of the chasm.

Watch it now while you still can:

Greatest legal transfer of wealth is here…

Editorial Staff

October 18, 2024

The 2024 election is about to trigger a multi-trillion
dollar transfer of wealth… which side will you be on?

Dear Reader,

My name is Porter Stansberry.

I’m the founder of America’s largest independent financial research firm.

Millions of investors follow our work, including top Wall Street hedge funds, major financial institutions, and high-level politicians.

It’s rare for me to do this, but I’m personally reaching out to you today because I believe this is of the utmost importance.

Here’s my warning to you: hidden beneath all the chaos of the 2024 election… a colossal, unseen financial crisis is coming to America… yet nobody is sounding the alarm..

Until now.

At great expense I’ve just released a private investor’s summit where, for the first time, I lay out exactly where, how, and when this new crisis starts… and what it means for you, your money, and your financial future.

It involves the convergence of several financial forces that I believe could trigger an unstoppable chain reaction that cleaves the financial markets in two…

… destroying the wealth of millions of unsuspecting investors while making a fortune for those who know what’s coming.

Which side of this divide you’re on depends on what you do before the polls close and before this economic, social, and financial crisis reaches the point of no return.

I’ve produced this emergency broadcast to ensure you’re on the right side.

I’m going to give it to you straight – like no one else has. I’m going to explain what’s really going on in our economy, our financial system, and our elections…

Most importantly, I’ll show you how you can protect and grow your wealth in the months ahead, even as the markets plunge 50% or more.

Watch it here, now.

This eliminates your vote on Nov 5

Editorial Staff

October 18, 2024

Dear Fellow American,

This election will divide our nation… but not how you would expect.

The chasm that will be ripped open the moment the polls close has nothing to do with who you vote for, who is elected President, or even what policies they plan to put in place.

What’s coming on November 5th is far bigger than any politician or party…

It involves the convergence of several unseen financial forces – forces that have been building under the surface for years, and have now hit the breaking point.

As these forces erupt, I believe they could trigger an unstoppable chain reaction that cleaves the financial markets in two… destroying millions of unsuspecting investors’ wealth while making a fortune for those who know what’s coming.

Which side of this divide you’re on depends on what you do before the polls close and before this economic, social, and financial crisis reaches the point of no return.

Yet nobody is warning you of what’s coming…

Everyone is too caught up sparring with the “other side of the aisle”… attempting to predict who’ll win the Presidency… or guessing what policies the new regime will put in place…

As a result, they’re missing the financial shockwave that’s about to rip America in two and cast everyone – regardless of political affiliation – into one of two camps: rich or poor.

Those who do nothing could lose everything.

That’s why I’m inviting you to watch this emergency broadcast.

I want to make sure you’re on the right side of this divide.

You see, despite the disruption ahead, as long as you are prepared, the next four years could potentially be the greatest wealth-building window of your lifetime.

Because I believe the aftermath of the 2024 Presidential election could see trillions of dollars being displaced…

… and while millions of unprepared Americans will be on the losing side of this transfer, if you own the right investments, you could potentially make a fortune.

To get the blueprint I’m urging my friends, family, and readers to follow – go here now to view my emergency broadcast.

I’ll see you there.

Porter

Earnings Insight: Key Companies to Watch Next Week

Editorial Staff

October 18, 2024

Earnings season is heating up, and among the 22% of S&P 500 members set to report next week, there are several companies that have a strong track record of beating expectations. Historically, these companies tend to surprise investors on earnings day with better-than-anticipated results, often followed by a solid jump in their stock prices.

We’ve taken a close look at some of these standout names—companies that have exceeded earnings per share (EPS) estimates at least 70% of the time and tend to gain 2% or more on average in post-earnings trading. These stocks may be poised for another round of strong performances next week, making them worth watching.

ServiceNow (NOW): Positioned for AI Growth

ServiceNow (NOW) has consistently beaten analysts’ EPS estimates, doing so 90% of the time. The stock has risen an average of around 3.3% following its earnings reports, and it’s already up more than 30% in 2024. The company is set to report earnings on Wednesday after the close and recently announced it would invest $1.5 billion in the U.K. over the next five years, which could further solidify its market position.

With the launch of its new Xanadu product release, ServiceNow is moving full speed ahead in building its artificial intelligence (AI) capabilities, an area that is likely to drive significant growth in the future. Wells Fargo’s Michael Turrin is bullish on the stock, increasing his price target to $1,025, indicating about 11.5% upside from current levels. ServiceNow’s strong platform positioning and proven track record make it a standout in the enterprise software space, particularly as AI demand continues to surge.

Monolithic Power Systems (MPWR): Riding the AI Wave

Monolithic Power Systems (MPWR) is another name that has a strong history of beating earnings expectations—88% of the time, to be exact. The stock has increased an average of 2.6% after earnings and has surged 48.5% in 2024, outperforming the broader market.

Monolithic Power is poised to benefit from the ongoing AI revolution, with Oppenheimer analyst Rick Schafer naming it one of his top semiconductor picks. Schafer expects companies exposed to AI to deliver upside results, and Monolithic Power is well-positioned to capitalize on this trend. The company’s power circuits are vital for AI-related infrastructure, making it a compelling choice for investors looking to ride the AI growth wave. MPWR is slated to report on Friday after market close.

Impinj (PI): A High-Flyer with Momentum

Also scheduled to report quarterly earnings on Wednesday after market close is Impinj (PI), which manufactures radio-frequency identification (RFID) devices, has been on fire this year, with its stock soaring 160.3% year-to-date. Like ServiceNow and Monolithic Power, Impinj has a strong track record of exceeding earnings expectations, doing so 88% of the time. The stocks average gain after earnings is 3.2%, making it a volatile, yet rewarding, pick.

Despite its stellar performance in 2024, analysts are slightly cautious about the stock’s near-term outlook, with a consensus price target implying a 13.6% downside. However, analysts remain bullish on the company’s long-term prospects, particularly given its strong position in the growing RFID market. For investors with a higher risk tolerance, Impinj could present an intriguing opportunity.

Netflix’s Q3 Earnings Just Days Away—Here’s What You Need to Know

Editorial Staff

October 15, 2024

Netflix has been a big winner in 2024, surging almost 50%, and it seems the streaming giant still has room to run as it approaches its third-quarter earnings release next week. UBS, Morgan Stanley, and Oppenheimer are all forecasting continued growth, fueled by strong subscriber momentum and price hikes on the horizon.

UBS analyst John Hodulik is optimistic about Netflix’s positioning as the industry continues to consolidate. He’s expecting solid subscriber growth despite a slowdown in year-over-year numbers. Hodulik has a buy rating on the stock with a price target of $750, implying a modest upside of around 2% from its current level. He believes the platform’s Q4 will be especially strong, with upcoming hits like Squid Game season 2 and NFL content driving subscriber numbers higher. UBS is predicting 7.1 million net new additions for Q4, compared to 5.8 million in the previous quarter.

Beyond just subscriber growth, Netflix’s free cash flow is expected to surge, with projections of an increase of $2.9 billion between 2024 and 2025. That’s an attractive proposition for investors, especially with Netflix’s ability to continue producing high-engagement content.

Morgan Stanley is even more bullish, raising its price target to $820, implying more than 12% upside. Analyst Benjamin Swinburne sees Netflix as having a “long runway” for revenue growth, forecasting a 13% revenue boost in 2025, driven by a mix of price increases and content success. Similarly, Oppenheimer bumped its target to $775 and expects Netflix to raise the price of its standard plan by 8% to 15% globally, excluding the U.S., U.K., and France.

Most analysts agree Netflix is a dominant force in streaming, with 33 of the 48 analysts covering the stock rating it as a buy. While there’s always risk in an overbought stock, the average Wall Street target of $708.75 still leaves some room for growth, especially as Netflix continues to innovate.

As Netflix gears up to report its third-quarter earnings, investors might find this dip an opportune moment to jump in. With price hikes likely on the horizon and more strong content releases in the pipeline, the stock is well-positioned for a continued upward trajectory.

Three Surprising Stocks to Watch This Earnings Season

Editorial Staff

October 14, 2024

Earnings season is in full swing, and as financial giants like JPMorgan, Netflix, and Procter & Gamble report their results, it’s a great time to assess where opportunities lie. The second-quarter earnings season set the bar high, with 79% of S&P 500 companies beating expectations. This quarter, many are hoping for similar surprises, especially with certain stocks already up significantly in 2024.

We’ve identified three stocks that could have a lot more room to run based on a variety of catalysts and fundamental strength.

3M Co. (MMM) – Industrial Giant with Margin Growth Potential

Shares of 3M have already surged 47% year-to-date, but analysts see room for more. According to analysts, 3M could rally nearly 20% from its current levels, targeting a price of $162. The company, known for its Post-it notes and various industrial products, has seen a solid recovery, although it’s no longer the deep value play it was just a few months ago.

The company’s margins could surprise to the upside this quarter, thanks to steady top-line growth, operating leverage during a seasonally strong quarter, and lower restructuring charges. Despite the macro challenges for industrials, 3M’s ability to control costs and improve margins might allow it to outperform expectations.

Around 40% of analysts now rate 3M as a buy, a sharp increase from just 5% in March.

Oracle (ORCL) – Riding the AI Wave

Oracle has been one of the top performers in 2024, with its shares up 67%. Analysts believe the stock could climb another 19%, with a price target of $210. What’s fueling this optimism? Oracle’s aggressive expansion into cloud services, particularly its Oracle Cloud Infrastructure (OCI), which has seen growing demand, especially as artificial intelligence (AI) continues to drive new opportunities.

OCI’s success has provided Oracle with a strong new growth engine, which could last for years. The company’s top-line growth has been robust, and operating leverage from scaling OCI should translate into better margins and earnings in the quarters ahead.

While Oracle’s stock may seem expensive to some after its significant gains this year, the company’s positioning in the rapidly expanding cloud and AI markets could help it maintain upward momentum. Most analysts covering the stock are optimistic, with many seeing further gains ahead.

Target (TGT) – A Turnaround Story in the Making

Target’s stock has had a modest year so far, up 11%, but analysts believe the retailer could see even bigger gains. At it’s high end, a price target of $200 implies an additional 25% upside over the next 12 months, driven by a combination of rising revenue and expanding profit margins.

Target’s net sales grew by 2.3% in the third quarter, and Wall Street expects this momentum to carry into the second half of the year. The company has faced easy year-over-year comparisons, and its turnaround strategy seems to be gaining traction. As its strategy plays out, Target is likely to experience positive earnings momentum, making it an attractive buy ahead of earnings.

With more than half of the analysts covering Target rating it as a buy, there’s a growing consensus that the stock has significant upside potential as the company’s turnaround story continues to unfold.

As earnings season progresses, it’s essential to stay ahead of the curve and look for stocks where the market’s expectations might be too low. 3M, Oracle, and Target are three names that stand out for their potential to surprise to the upside. Whether it’s 3M’s margin growth, Oracle’s cloud success, or Target’s turnaround, these stocks have a lot to offer for investors willing to bet on their continued success.

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Pan American Silver (PAAS)

Silvercorp Metals (SVM)

First Majestic Silver Corp (AG)

Silver’s Breakout Potential: What to Watch For

Walmart (NYSE: WMT) E-commerce and Omnichannel Innovations Driving Continued Growth

Ally Financial (NYSE: ALLY) Well-Positioned for Long-Term Growth in a Shifting Market

Vista Energy (NYSE: VIST) A Promising Energy Stock with Room to Grow

1. W. P. Carey Inc. (NYSE: WPC)

2. EPR Properties (NYSE: EPR)

3. ARMOUR Residential REIT (NYSE: ARR)

The 2024 election is about to trigger a multi-trilliondollar transfer of wealth… which side will you be on?

ServiceNow (NOW): Positioned for AI Growth

Monolithic Power Systems (MPWR): Riding the AI Wave

Impinj (PI): A High-Flyer with Momentum

3M Co. (MMM) – Industrial Giant with Margin Growth Potential

Oracle (ORCL) – Riding the AI Wave

Target (TGT) – A Turnaround Story in the Making

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The 2024 election is about to trigger a multi-trillion
dollar transfer of wealth… which side will you be on?