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Management's ability to "raise guidance" can often be a catalyst for market-beating returns in the quarters ahead. The first-quarter earnings season has crossed the 90% mark and is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of almost 7%, according to Refinitiv. That is considerably better than the 4%-7% advance expected at the start of the earnings period. Leading the outperformance were strong gains in Communication Services earnings, up 43%, and Consumer Discretionary, up 26%. On the flipside, Healthcare and Energy, both down 24%, are performing the worst. Our analysts are always on the lookout for companies that boost outlooks during earnings season, as this is often a signal for momentum in the months ahead. Here is an initial list of BUY-rated companies in the Argus Fundamental Universe of Coverage at which management raised guidance or increased its outlook during the 1Q24 EPS reporting season.

Applied Materials produces semiconductor fabrication equipment, including products used in deposition, etching, ion implantation, metrology, wafer inspection and mask-making. Acquisitions expanded AMAT's presence in flat-panel display fabrication equipment and in the solar semiconductor market (since exited). The $4.9 billion Varian acquisition enabled AMAT to build share in high-performance and low-power applications processors.

Monday Tee Up: Here Comes NVDA

The rise in global land and sea temperatures, the melting of Arctic Sea ice, and the frequency of extreme weather events provide evidence that climate change is underway. United in concern over greenhouse gas emissions (GHG) stemming from fossil fuel power plants and car and truck tailpipes, 194 member states of the United Nations signed the Paris Agreement in 2015. This legally binding international treaty on climate change seeks to limit global warming to well-below two, preferably 1.5 degrees Celsius, compared to pre-industrial levels. Concerns over the health of the planet and its inhabitants and a reluctance to be reliant on overseas fuel sources prompted governments around the globe to develop and deploy clean, renewable sources of energy. In the U.S., the Inflation Reduction Act (IRA) of 2022 called for the investment of $391 billion in programs and incentives related to energy security and climate change, including over $120 billion for renewable energy and grid energy storage, tax credits for wind power, solar power, clean energy manufacturing, electric vehicle incentives, and other energy efficiency measures. We expect the IRA to kick clean energy into a higher gear. Already, wind power as a percentage of U.S. electricity generation has grown from less than 1% in 1990 to 10% by 2022. The global solar power market is also large and growing. It generated $235 billion in 2022 revenues, and is projected to rise at a compound annual growth rate of 7% to $293 billion in 2029. For more insights and ideas into the Clean Energy sector, see our latest Industry Review & Outlook for Clean Energy.