When management at a company raises guidance, it can be a catalyst for market-beating returns in the quarters ahead. The second-quarter earnings season is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of 12%, according to Refinitiv. That is considerably better than what was expected at the start of the earnings period. Leading the outperformance are strong gains in Financial, with earnings up 20%. On the flipside, Materials is performing the worst, down 6%. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Here is a partial list of BUY-rated companies in Argus' Fundamental Universe of Coverage at which management raised guidance or increased its outlook during the 2Q24 EPS reporting season. We like this theme, as it crosses numerous industries and generates a robust list of potential portfolio candidates.

In its 135-year history, McCormick has grown to become the leading global manufacturer, marketer, and distributor of spices, herbs, extracts, seasonings, and other flavorings. Beyond end consumers, McCormick's customer base also includes top quick-service restaurants, retail grocery chains, and other packaged food and beverage manufacturers. And its reach is global, with nearly 40% of sales generated beyond its home turf to include 150 other countries and territories. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and Cholula, among others.

Halfway through 2024, sector breadth has deteriorated somewhat from strong levels earlier in the year -- but remains better than that at mid-year 2023. Communication Services and Information Technology at mid-year 2023 were high-teen percentage points higher than the benchmark index; currently, they are, on average, beating the broad market by high-single to low-double-digit percentages. While only these two sectors are ahead of the S&P 500, multiple sectors -- including Energy, Financial, Utilities, Consumer Staples, and Healthcare -- currently are beating or slightly lagging the index's average annual appreciation of 10% since 1980. Materials and Consumer Discretionary are up 4%-6% year to date, while Real Estate -- deeply negative for much of 2024 -- is down less than 2% as of mid-year. The Consumer Discretionary sector, one of the top-three performers in 2023, was ninth among 11 sectors in 2024 to date. Spending by consumers, particularly those in the middle and lower tiers of the economy, is being constrained by high interest rates, high costs for everyday goods, and the burden of high rents. The reality of weak consumer goods spending was evident in the 1Q24 GDP report as well as in April and May retail spending. For the market to build on its healthy first-half gains, we will look for breadth to improve into year-end.

In its 135-year history, McCormick has grown to become the leading global manufacturer, marketer, and distributor of spices, herbs, extracts, seasonings, and other flavorings. Beyond end consumers, McCormick's customer base also includes top quick-service restaurants, retail grocery chains, and other packaged food and beverage manufacturers. And its reach is global, with nearly 40% of sales generated beyond its home turf to include 150 other countries and territories. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and Cholula, among others.