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Truist sees dynamic stories in six stocks for next six months

Published 24/12/2024, 17:28
Truist sees dynamic stories in six stocks for next six months
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On Monday, Truist highlighted six stocks expected to capture investors’ attention over the next six months due to their dynamic corporate narratives. The stocks identified are Celsius Holdings , Inc. (NASDAQ:CELH), e.l.f. Beauty, Inc. (NYSE:NYSE:ELF), Church & Dwight Co., Inc. (NYSE:NYSE:CHD), Krispy Kreme , Inc. (NASDAQ:DNUT), Keurig Dr. Pepper, Inc. (NASDAQ:KDP), and Newell Brands, Inc. (NASDAQ:NWL). These stocks were selected not based on performance predictions but on the anticipated evolution of their individual stories.

Celsius Holdings, Inc. (NASDAQ:CELH) currently holds a ’Hold’ rating, with investors divided over its future. Questions linger about the U.S. energy category’s recovery, CELH’s market share expansion, and the fruits of its partnership with PepsiCo (NASDAQ:PEP). Clarity on these issues is expected by mid-2025. e.l.f. Beauty, Inc. (NYSE:ELF), given a ’Buy’ rating, is forecasted to continue double-digit growth despite facing tough comparisons in early 2025. Church & Dwight Co., Inc. (NYSE:CHD), also rated ’Buy’, is anticipated to bounce back from a volatile performance in 2024 with the aid of commodity price relief.

Krispy Kreme, Inc. (NASDAQ:DNUT) has maintained a ’Buy’ rating. Despite three quarters of positive results and a partnership with McDonald’s (NYSE:NYSE:MCD), DNUT’s stock has remained range-bound. The first half of 2025 is expected to be pivotal, revealing the partnership’s impact.

Keurig Dr. Pepper, Inc. (NASDAQ:KDP), with a ’Hold’ rating, faces a dynamic period due to its coffee industry exposure and new ventures into the energy drink market, including the acquisition of Ghost and partnerships with C4 and Black Rifle Coffee Company (NYSE:BRCC). Lastly, Newell Brands, Inc. (NASDAQ:NWL), recently upgraded to ’Buy’, has demonstrated a significant turnaround that may gain investor recognition through organic sales growth and tariff benefits.

Focusing on Krispy Kreme, Truist emphasized its paradoxical situation in 2024, where favorable results and a major McDonald’s deal did not translate to stock performance. The rollout of Krispy Kreme doughnuts in McDonald’s outlets, expected to reach approximately 2,000 locations by December 31, is seen as a stepping stone to broader retail expansion. The partnership and prospective growth in distribution are believed to enhance Krispy Kreme’s national brand perception and distribution capabilities.

In other recent news, Church & Dwight Co. Inc. reported a 3.8% increase in sales for the third quarter, exceeding the expected growth of 2.5%. The company’s adjusted earnings per share (EPS) for the quarter were $0.79, outpacing the forecast of $0.67. Despite a significant asset write-down in the gummy vitamins segment, the company experienced growth in international sales and specialty products.

Analysts from TD Cowen and Jefferies have updated their perspectives on the company. TD Cowen increased the company’s stock price target from $114.00 to $117.00, maintaining a Buy rating, while Jefferies held a Hold rating with a price target of $108.00. Both firms recognized Church & Dwight’s market share gains and potential for better-than-anticipated performance.

In the personal care sector, Piper Sandler noted mixed spending trends. Despite this, the firm maintained its Overweight ratings for Church & Dwight and other companies. Church & Dwight saw a 1.9% year-over-year increase in sales for its top six brands during a recent 4-week period and a 3.0% year-over-year increase for Q4 to date. This is in line with Piper Sandler’s projections of a 1.6% organic growth for the Consumer Domestic segment in Q4.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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