Management's ability to "raise guidance" can often be a catalyst for market-beating returns for specific stocks in the quarters ahead. The third-quarter earnings season is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of 9%, according to Refinitiv. Leading the outperformance were strong gains in Communication Services earnings, up 26%. On the flipside, Energy is performing the worst, down 25%. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. The following is a partial list of companies at which management raised guidance during the 3Q24 EPS reporting season. All are BUY-rated in the Argus Fundamental Universe of Coverage. We like this theme, as it crosses numerous industries and generates a robust list of potential portfolio candidates.

Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Lockheed’s largest segment is aeronautics, which derives upward of two-thirds of its revenue from the F-35. Lockheed’s remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.

The U.S. presidential election is just days away. Which candidate is better for the stock market? Surprisingly, we don't think it matters that much. This theory is backed up by historical data. Our review of presidential cycles reveals that the primary driver of stock success is market fundamentals - how well the economy is doing, if inflation is maintained at the low 2%-3% levels, if the labor market remains strong and unemployment doesn't creep up, and if interest rates are lower. This is the best case for stocks and outweighs whoever is in the White House. That said, there are some nuances and implications for individual sectors. For our list this week and next, we look at several sectors and how they might be impacted by America's choice for the next president. Below, we look at the Industrial and Financial sectors and how they might perform under either candidate.

Lockheed Martin provides advanced technology systems, products, and services to the U.S. government and international defense customers. The company is organized into four businesses: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems. The shares are a component of the S&P 500. Headquartered in Maryland, the company has 122,000 employees.