Illustration: Milo Targett for Bloomberg Businessweek
Businessweek
10 Companies to Watch
Q3 2024
Following our list of 50 Companies to Watch in January and 10 Companies to Watch in April, we’re back with 10 more for the third quarter based on scenarios from Bloomberg Intelligence. The companies in the spotlight, spanning sectors and regions, are part of a larger group of high-confidence Focus Ideas that BI analysts identify on an ongoing basis. Each scenario outlines an important catalyst coming in the next few months that supports our case.
For more information on Bloomberg Intelligence, please visit www.bloomberg.com/bi
Nintendo
Outlook ☁️
With no date set for the debut of the successor to its Switch console, the gaming company appears unlikely to meet consensus expectations for its hardware segment in fiscal 2025, which started in April. Combined with the relatively small number of new games in Nintendo’s pipeline, that suggests profit will come in about 10% below consensus.
—Nathan Naidu
Data Sheet
Market cap
70.5
Estimated 2024 sales
8.8
Forecast sales growth
-27%
President
Shuntaro Furukawa
Legal name
Nintendo Co Ltd.
Triggers
- Results for the quarter ending in June should show soft software revenue and a continued drop in hardware sales.
THK
Outlook ☀️
Surging interest in all things AI is likely to fuel investment in electronics and semiconductor production. THK’s 50% global share in linear motion guide rails for high-precision manufacturing equipment—critical for high-end chip manufacturing—uniquely positions it to benefit, improving revenue growth.
—Takeshi Kitaura
Data Sheet
Market cap
2.3
Estimated 2024 sales
2.4
Forecast sales growth
-8%
Chairman/CEO
Akihiro Teramachi
Legal name
THK Co Ltd.
Triggers
- Orders should start to recover in the second half as Japan machine tool and chipmaking tool investments begin to improve.
Galaxy
Outlook ☀️
The casino operator’s growth in revenue and market share should accelerate in the second half thanks to its recent expansion in Macau. Galaxy’s cluster of properties on the Cotai Strip gives it the gambling hub’s largest table count and a growing range of nonbetting activities such as concerts at the new Galaxy Arena.
—Angela HanLee
Data Sheet
Market cap
20.8
Estimated 2024 sales
5.7
Forecast sales growth
26%
Chairman/Executive Director/Founder
Dr Lui Che Woo
Legal name
Galaxy Entertainment Group Ltd.
Triggers
- Summer vacation business at Galaxy Macau is poised to rise faster than that of other properties as the company’s new Andaz Hotel and entertainment activities attract tourists.
Diageo
Outlook ☀️
The spirits maker’s leading global position in scotch and tequila, which together account for almost 40% of revenue, will likely fuel sales growth topping 5% in fiscal 2025. Increased spending on marketing and new products such as ready-to-serve tequila cocktails should help persuade consumers to switch to higher-priced offerings.
—Duncan Fox
Data Sheet
Market cap
71.8
Estimated 2024 sales
20.9
Forecast sales growth
2%
CEO/Executive Director
Debra Ann Crew
Legal name
Diageo Plc
Triggers
- Fiscal yearend results should show inventories in the US and China falling back toward normal levels. Sales growth is likely to benefit from Diageo’s premium brand strategy.
SAP
Outlook ☀️
Cloud-based products now account for about two-thirds of product sales, and bookings for those offerings will likely jump 20%-plus this year. A broader IT spending recovery in 2025 augurs even more growth, with sales improving by 10% or more.
—Anurag Rana
Data Sheet
Market cap
244
Estimated 2024 sales
36.4
Forecast sales growth
8%
CEO/Member of Management Board
Christian Klein
Legal name
SAP SE
Triggers
- Quarterly results in July should show SAP’s cloud-based backlog growing 25%-plus, with a further acceleration likely in the third quarter.
Sandvik
Outlook ☀️
The heavy equipment maker gets more than half its revenue from mining companies, which are expected to increase capital spending in the second half. The biggest gains will come from gold and copper miners—areas where Sandvik has the leading market share. The company is poised to also improve profits by working through inventory surpluses.
—Omid Vaziri
Data Sheet
Market cap
25.3
Estimated 2024 sales
12
Forecast sales growth
1%
President/CEO
Stefan Ronnie Widing
Legal name
Sandvik AB
Triggers
- Major Australian miners such as BHP are likely to unveil healthy budgets for capital expenditures when they release full-year results in August, giving a boost to Sandvik.
Corning
Outlook ☀️
As the biggest US maker of fiber-optic cables, Corning has benefited from the boom in AI data centers and a US stimulus package that will lift spending on broadband access. After the supply chain bottlenecks and pullbacks in telecom capital spending last year, revenue growth should accelerate by 20% or more through 2025.
—Woo Jin Ho
Data Sheet
Market cap
33.6
Estimated 2024 sales
14
Forecast sales growth
3%
Chairman/CEO
Wendell P Weeks
Legal name
Corning Inc.
Triggers
- The $42 billion Broadband Equity, Access, and Deployment Program is expected to announce state funding allocations in the third quarter.
Nike
Outlook ☀️
New products such as the Pegasus premium running shoe and an expansion of the Air franchise will improve revenue for the sporting apparel giant. Combined with the Olympics and other major sporting events, they could reverse two years of disappointing earnings.
—Poonam Goyal
Data Sheet
Market cap
142
Estimated 2024 sales
51.2
Forecast sales growth
-1%
President/CEO
John Joseph Donahoe II
Legal name
Nike Inc.
Triggers
- The Paris Olympics in July and August and the ongoing UEFA European championship tournament will likely add momentum to Nike’s recent product launches.
RH
Outlook ☁️
Management is holding to projections of an 8%-plus revenue increase for 2024, which looks overly optimistic. Last year’s sales declines continued into the first quarter, as an improvement in furniture demand has been slow to emerge. With furniture accounting for two-thirds of revenue, RH risks missing its targets.
—Lindsay Dutch
Data Sheet
Market cap
4.1
Estimated 2024 sales
3.2
Forecast sales growth
5%
Chairman/CEO/Founder
Gary G Friedman
Legal name
RH
Triggers
- Sales growth data for the second quarter, expected in September, looks set to trail guidance that had predicted a significant rebound in demand.
HCA
Outlook ☁️
Like other US hospital operators, HCA may face a shrinking profit margin because of higher wages, increased prices for goods and services, and slowing demand for care. Earnings growth will likely be in the mid-single digits this year and next, less than the consensus estimate of about 10% growth.
—Glen Losev
Data Sheet
Market cap
88.6
Estimated 2024 sales
69.6
Forecast sales growth
7%
CEO
Samuel N Hazen “Sam”
Legal name
HCA Healthcare Inc.
Triggers
- Second-quarter results due in late July should offer updated guidance that will likely curb expectations.