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.

In this edition, a new world of direct indexing and Mass Personalization; Nordson set to capitalize on favorable secular trends; we see Western Union going in right direction; and Monolithic Power Systems, Compass Minerals, and Evotec.

Charles Schwab operates in brokerage, wealth management, banking, and asset management. It runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website, and it has mobile trading capabilities. It also operates a bank and a proprietary asset-management business and offers services to independent investment advisors. Schwab is among the largest firms in the investment business, with over $8 trillion of client assets at the end of December 2023. Nearly all of its revenue is from the United States.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.