Buy these stocks with strong earnings for a choppy market, says Wolfe
The stock market has been sailing through choppy waters in July, which could make stocks with stronger fundamentals more appealing for investors. The S & P 500 hasn’t been able to top the record highs it set in June and is down around 0.8% for the month. As the Iran war stretches on, investors worry that oil prices will remain high and consumer goods will follow suit. Investors are also starting to raising questions around the artificial intelligence craze, with Alphabet and Tesla falling last week after indicating an increase in AI-related capex during their earnings call. However, Wolfe Research thinks some stocks can best weather the current market turbulence. In a Monday note to clients, the firm released a list of companies that have beaten analysts’ expectations in the past two quarters and saw their shares get a boost. These names have also had positive 2026 earnings estimate revisions from analysts. “Our sense is that companies beating on the top- and bottom-lines over the past two quarters with positive relative price action around their release and positive YTD 2026E EPS revisions are likely to provide durable returns in a choppy market environment,” analyst Chris Senyek wrote. Here are six of the stocks that made the list: BlackRock posted second-quarter earnings on July 15, leading JPMorgan to upgrade the asset management giant . “We see BlackRock as a best-in-class asset manager with executing against various growth drivers across different business lines,” analyst Michael Cho wrote. “We are upgrading the BlackRock stock…based on the strong setup for flows, organic revenue, and operating leverage ahead.” UnitedHealth Group also surpassed revenue and earnings expectations on July 16. The healthcare insurance provider earned an adjusted $6.38 per share on revenue of $112.03 billion, topping an LSEG consensus of $4.90 per share on revenue of $110.85 billion. Goldman Sachs reiterated its overweight rating following the bullish release. “In a nutshell, 2Q results reinforce that the turnaround in both insurance and care delivery operations remains firmly on track, with clear evidence of improved medical cost trends and accelerating Optum Health profitability.” Analyst Scott Fidel wrote. Philip Morris International made the list as well. CEO Jacek Olczak told CNBC’s “Squawk Box” last week he was “very pleased with what has happened beyond the numbers this quarter,” as the company’s smoke-free products continue to gain traction. BTIG this month initiated coverage with a buy and a $216 price target, implying a 10% upside from Monday’s close. “Well in PM’s case, the execution of the RRP [smoke-free alternatives] transition has been largely flawless. Combustibles have remained robust, a global leading RRP premium positioning has been established, and critically from a valuation perspective, this transition continues at levels way beyond most peers,” analyst Owen Bennett wrote in a July 21 note. Correction: A previous headline misstated Wolfe’s name
