Illustration: Tijmen Snelderwaard for Bloomberg Businessweek
Businessweek
10 Companies to Watch
Q2 2024
Following our list of 50 Companies to Watch in January, we’re back with 10 specifically for the second quarter based on scenarios from Bloomberg Intelligence. BI analysts sort through the barrel to find the good apples across sectors and regions. These come from a larger group of high-confidence Focus Ideas that BI identifies on an ongoing basis. Each scenario outlines an important catalyst coming in the next few months that support our case.
For more information on Bloomberg Intelligence, please visit www.bloomberg.com/bi
Lodging
Accor
Outlook ☀️
The post-pandemic travel recovery is proving to be more robust than many thought, which is good for Europe’s largest hotelier. Accor’s properties, from the super-luxe Fairmont and Raffles to lower-cost Ibis and Novotel, are benefiting from stable pricing and a recovery of occupancy in Asia as demand from both leisure and business travelers improves.
—Conroy Gaynor
Data Sheet
Market cap
$11.8B
Estimated 2024 sales
$5.8B
Forecast sales growth
6%
Chairman/CEO
Sébastien Bazin
Legal name
Accor SA
Triggers
- April’s update on first-quarter sales will likely show resilient pricing and provide details on bookings for the Summer Olympics in Paris.
Retail
Chow Tai Fook
Outlook ☁️
As more Hong Kong residents shop at cheaper outlets on the mainland, this owner of jewelry stores is facing challenges as BI expects retail sales in the city to decline 4% in 2024. The real estate slump and weak stock markets in mainland China and Hong Kong have depressed consumer sentiment, and those still interested in buying jewelry are choosing less-extravagant pieces.
—Catherine Lim
Data Sheet
Market cap
$14.7B
Estimated 2024 sales
$14.8B
Forecast sales growth
11%
Chairman, Executive Director
Cheng Kar-Shun
Legal name
Chow Tai Fook Jewellery Group Ltd.
Triggers
- Hong Kong’s data on retail sales in May will likely show the first annualized drop since late 2022.
Brokerage
CSC Financial
Outlook ☁️
China’s second-biggest broker by market value may post disappointing results as investment banking revenue falls short of expectations. Based on BI’s analysis, earnings in 2024 could be as much as 15% below consensus: Regulators are slowing approvals of stock market listings in an effort to bolster the broader market by reducing the supply of new shares.
—Sharnie Wong
Data Sheet
Market cap
$20.5B
Estimated 2024 sales
$3.7B
Forecast sales growth
13%
Chairman
Wang Changqing
Legal name
CSC Financial Co.
Triggers
- Lingering regulatory challenges for the IPO market look to weigh on first-quarter earnings, which are set to be released in April.
Commercial vehicles
Oshkosh
Outlook ☀️
While the market seems focused on the challenges that the maker of commercial equipment and trucks faces as the construction market softens, BI expects Oshkosh to turn in strong earnings growth. A record backlog and easing supply constraints are poised to boost volumes, and the ramp-up of a new generation of vehicles for the US Postal Service could lead to additional profits.
—Chris Ciolino
Data Sheet
Market cap
$8B
Estimated 2024 sales
$10.4B
Forecast sales growth
7%
President/CEO
John Pfeifer
Legal name
Oshkosh Corp.
Triggers
- Sales and margin data expected in April should beat consensus, with Oshkosh reporting increased production and an easing of supply constraints.
Medical devices
Penumbra
Outlook ☀️
The medical-device maker is poised to benefit from its new products aimed at helping people who’ve suffered from or are at risk of strokes. Its Indigo computer-assisted vacuum technology can suck blood clots from arteries and veins without the need for anticoagulant drugs. BI expects the system to help boost this US segment’s revenue by about a third this year to almost $700 million.
—Matt Henriksson
Data Sheet
Market cap
$8.7B
Estimated 2024 sales
$1.2B
Forecast sales growth
18%
Chairman/President/CEO/Co-Founder
Adam Elsesser
Legal name
Penumbra Inc.
Triggers
- Financials due in May should show increased US sales of Indigo and other clot-related gear, spurring management to raise guidance.
Auto parts
Pirelli
Outlook ☀️
The Italian tire maker is shifting its mix in two ways that BI expects to boost profit margins in coming years: a move of high-end production to lower-cost Romania and Mexico from Europe, and an accelerated exit from standard tires, giving the company a higher average selling price. Margins for 2024-25 could be as much as 200 basis points higher than consensus estimates.
—Gillian Davis
Data Sheet
Market cap
$6.1B
Estimated 2024 sales
$7.3B
Forecast sales growth
1%
CEO
Andrea Casaluci
Legal name
Pirelli & C. SpA
Triggers
- An early May earnings announcement should provide more details on the company’s efforts to shift production and its exit from lower-price products.
Software
Salesforce
Outlook ☀️
As one of the largest cloud-based software providers, Salesforce is positioned to capitalize on a second-half rebound in corporate IT spending that BI expects. Data from its customer relationship management systems is key to driving new generative artificial intelligence projects at many of its clients, and the company’s expanding order backlog points to improving revenue growth in 2024-25.
—Anurag Rana
Data Sheet
Market cap
$291B
Estimated 2024 sales
$41.3B
Forecast sales growth
9%
Chair/CEO/Co-Founder
Marc Benioff
Legal name
Salesforce Inc.
Triggers
- First-quarter results to be released in late May will likely show low-teens revenue growth, much stronger earnings and a solid order backlog.
Banking
Standard Chartered
Outlook ☀️
After setting aside reserves for potential China-related losses, the Asia-focused British bank is positioned for a better return on equity than most analysts expect over the next two years. A combination of surprising wealth management growth and efforts to lower its costs should allow revenue to outpace expenses—a contrast to the narrowing spread for many of its peers.
—Tomasz Noetzel
Data Sheet
Market cap
$22.5B
Estimated 2024 sales
$18.5B
Forecast sales growth
6%
CEO
Bill Winters
Legal name
Standard Chartered Plc
Triggers
- A financial report in May should show solid profit margins, stable credit quality and progress on cost reduction.
Homebuilding
Taylor Morrison
Outlook ☀️
The Arizona-based developer and homebuilder is poised to generate 12% to 14% growth in orders both this year and next. The company aims to hit 12,000 home closings in 2024, with a focus on large-scale communities and more affordable houses, and an increase in projects in Texas and Florida. BI expects that strategy will support a greater return on equity than the analyst consensus indicates.
—Drew Reading
Data Sheet
Market cap
$6.5B
Estimated 2024 sales
$7.5B
Forecast sales growth
1%
Chairman, President, CEO
Sheryl Palmer
Legal name
Taylor Morrison Home Corp.
Triggers
- Industry data from the key spring selling season will likely show greater strength in the new-home market versus resales.
Internet
Tencent
Outlook ☀️
While sentiment remains depressed for the Chinese e-commerce giant, BI sees a return to earnings growth in the midteens this year and beyond. Tencent’s online gaming business remains soft after a period of increased regulatory scrutiny, but short videos and artificial-intelligence-enhanced advertising are poised to drive a surprising improvement in profit margins.
—Robert Lea
Data Sheet
Market cap
$365B
Estimated 2024 sales
$93.1B
Forecast sales growth
8%
Chairman, CEO
Ma Huateng
Legal name
Tencent Holdings Ltd.
Triggers
- First-quarter details released in May should point to strong profits and cash-flow growth.
Illustrations by Tijmen Snelderwaard for Bloomberg Businessweek
Sales figures are for 2024.
Market value as of March 27, 2024.