Five stocks with more upside following earnings
Wells Fargo highlighted five companies that have more room to appreciate following their latest earnings. The Wall Street investment bank says stocks like Sunrun are compelling. Other overweight-rated companies the bank is bullish on include: RealReal, Spotify , Williams Companies and Nextracker. Spotify Technology Analyst Steven Cahall says he’s standing by the streaming music stock following its late July earnings report. Wells Fargo admitted the quarterly results weren’t overly exciting, but said Spotify remains a top pick with too many attractive catalysts to ignore. “[Estimates] are coming down and there is nothing particularly incremental to get excited about,” Cahall wrote. Nonetheless, the analyst said investors should remain calm. Cahall is particularly bullish on Spotify’s latest subscription tier, Super Fan. “We think the next several years will see product and feature innovations, such as Super Fan, increase in videos, education, etc,” he said. Shares of Spotify are up 64% this year with more room to run, Cahall went on to say. Williams Companies The natural gas and oil pipeline company is firing on all cylinders, according to Wells Fargo. Analyst Praneeth Satish raised his price target to $70 per share from $67 after Williams’ mixed earnings report earlier this month. “WMB underperformed post-Q2, likely due to high expectations around new project FIDs,” he wrote. FID’s are final investment decision projects that involve moving from the project planning to execution. Despite the quarterly report, Wells Fargo says it’s sticking with the stock thanks to several looming tailwinds. Satish called Williams’ growth “sector leading,” and said the company is likely to see a lower cash burden under President Trump’s One Big Beautiful Bill. Williams shares are up 6.2% this year, excluding its 3.5% dividend yield, and the stock remains a top idea at Wells Fargo. RealReal “We continue to like what we see from REAL,” analyst Ike Boruchow said following the resale clothing company’s latest earnings report. RealReal’s earnings and revenue both topped Wall Street estimates, and Boruchow says it remains a top pick. “At a high level, the model has course corrected, margin structure has shifted and top line is back to [plus double digit] growth,” he said. And that growth still has room to run, he added. “Resale is a clear winner in today’s macro, and we remain bullish,” he went on. Shares are up 47% in August alone. Spotify “[Estimates] are coming down and there is nothing particularly incremental to get excited about. But, we’d argue this is the pullback for those that believe in SPOT’s pricing power + bigger margin expansion setup into ’26. … We think [the] next several years will see product and feature innovations, such as Super Fan, increase in videos, education, etc.” Williams Companies “Sector Leading Growth Deserves Premium Multiple. … WMB underperformed post-Q2, likely due to high expectations around new project FIDs. … We continue to project WMB will be able to grow EBITDA at an 11% [compound annual growth rate] over the next three years, well ahead of guidance of 5-7% & Consensus of 8%.” RealReal “We continue to like what we see from REAL. … At a high level, the model has course corrected, margin structure has shifted and top line is back to [plus double digit] growth (and accelerating). Resale is a clear winner in today’s macro, and we remain bullish.” Sunrun “We continue to view RUN as a top pick in the residential solar space. … RUN’s base value is $8/sh, supported by an estimated $400MM/yr of cash generation through 2030. … RUN has safe harbored solar growth through 2030 with upside potential in 2030+ tied to grid services monetization.” Read more. Nextracker “We have an Overweight rating. NXT continues to gain market share from peers and is seeing growth across all geographical regions. We believe NXT is well positioned to beat FY 2026 Consensus revenue estimates.”
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