What are "earnings" and why are they important?

Earnings (also called profits) are the money a company makes after paying all its expenses. They're important because they show if a business is actually making money. When a company has strong earnings growth, it means they're increasing their profits over time, which often leads to higher stock prices. Investors pay close attention to earnings reports to judge a company's financial health and future prospects.

What does "beating EPS forecasts" mean?

EPS stands for Earnings Per Share, which is a company's profit divided by its outstanding shares of stock. When a company "beats EPS forecasts," it means they reported higher earnings than what financial analysts predicted. For example, if analysts expected a company to report $1.00 per share but they actually report $1.08, that's an 8% beat. This is generally seen as positive since it suggests the company is performing better than expected.

What are tariffs and how do they affect stocks?

Tariffs are taxes imposed on imported goods from specific countries. They can increase costs for companies that buy materials or products from overseas, potentially reducing their profits. This can then hurt their stock price. However, companies with strong "pricing power" (ability to raise prices without losing customers) or those less dependent on international trade can better manage these challenges, which is a key focus of this stock group.

What does "recurring revenue" mean for a company?

Recurring revenue is predictable income that a company can count on receiving regularly, like subscription fees. Companies with strong recurring revenue (like Microsoft with Office 365 subscriptions or Adobe with Creative Cloud) tend to have more stable and predictable earnings. This makes them potentially less vulnerable to economic uncertainties since their customers are committed to ongoing payments rather than one-time purchases.

What is "margin optimization" and why does it matter?

Margin optimization refers to a company's efforts to increase its profit margins—the percentage of revenue that becomes profit. Companies can do this by raising prices, reducing costs, or becoming more efficient. When a company successfully optimizes margins (like PBR mentioned in this group), it means they're squeezing more profit from each dollar of sales. This is particularly valuable during challenging economic times, as it can help maintain earnings even if sales growth slows.

15 handpicked stocks

Earnings Over Headwinds

A carefully selected collection of companies showing exceptional earnings growth despite market challenges. These stocks were handpicked by our analysts for their ability to maintain strong performance even when facing trade tensions and economic uncertainty.

Han Tan | Market Analyst

Published on July 2

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Microsoft Corporation

MSFT

Current price

$517.43

Microsoft's software and cloud-based model provides strong, recurring revenue with high margins, largely insulating it from direct tariff and supply c...

Microsoft's software and cloud-based model provides strong, recurring revenue with high margins, largely insulating it from direct tariff and supply chain issues.

Eli Lilly and Company

LLY

Current price

$815.86

As a pharmaceutical leader, its growth is driven by a strong drug pipeline, making its earnings resilient to industrial tariff policies.

Costco Wholesale

COST

Current price

$916.34

Costco's business model relies on high operational efficiency and membership fees, giving it a buffer against margin pressure from tariffs.

Adobe Systems Inc.

ADBE

Current price

$349.98

UnitedHealth Group Incorporated

UNH

Current price

$353.30

Deere & Company

Current price

$463.00

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+21.87%

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About This Group of Stocks

Our Expert Thinking

When markets worry about tariffs and trade tensions, companies with strong fundamentals often shine through. We've identified businesses that are beating earnings expectations and demonstrating operational excellence despite economic headwinds, suggesting they may be better positioned to weather uncertainty.

What You Need to Know

This group includes companies across diverse sectors—from software and pharmaceuticals to industrials and retail. What connects them is their demonstrated ability to maintain profit growth, optimize margins, or leverage subscription-based models that provide stability even when facing challenges.

Why These Stocks

Each company in this collection has shown specific signs of resilience, such as beating analyst forecasts, growing recurring revenue, or successfully managing costs. These businesses have the pricing power, operational efficiency, or market positioning to potentially outperform despite macroeconomic headwinds.

Group Performance Snapshot

21.87%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 21.87% over the next year.

14 of 15

Stocks Rated Buy by Analysts

14 of 15 assets in this group are rated Buy by professional analysts.

4.9% vs 4%

Group Growth vs Bank interest

This group averaged a 4.9% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

💪

Beating Expectations When It Matters

Companies in this group are exceeding analyst forecasts by impressive margins—some beating EPS estimates by over 7-9%. These aren't just meeting targets; they're smashing them during uncertain times.

🛡️

Built-In Protection Against Uncertainty

While other stocks may falter when trade tensions rise, these companies have business models specifically designed to weather the storm. Their recurring revenue, pricing power, or operational efficiency provides a defensive buffer.

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Smart Money Is Watching These Closely

Professional investors are increasingly distinguishing between companies that can navigate headwinds versus those that can't. This collection represents businesses that analysts believe have the fundamentals to thrive despite economic noise.

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