Five Stocks with Upside Poised by Wells Fargo After Q2 Earnings

Five Stocks with Upside Poised by Wells Fargo After Q2 Earnings

Wells Fargo’s equity research team has spotlighted five companies that, despite mixed or muted market reactions to recent quarterly reports, still offer compelling upside potential. The bank points to robust fundamentals—ranging from product innovation and margin recovery to policy tailwinds—and maintains Overweight ratings on all five names, spanning technology, energy infrastructure, resale luxury and renewable power generation.

1. Spotify Technology (SPOT)

Analyst Steven Cahall reaffirmed Spotify as a top pick, even after its late-July Q2 report failed to deliver major surprises. Cahall notes that, although consensus estimates have drifted modestly lower and the quarter was “not particularly exciting,” Spotify’s pipeline of product-tier innovations—most notably its new “Super Fan” subscription—and expanded content offerings (video, educational series) should drive fresh revenue streams and margin expansion over the next few years. With shares up roughly 64 percent year-to-date, Wells Fargo views any post-earnings pullback as an entry point for investors confident in Spotify’s pricing power and long-term growth trajectory.

2. Williams Companies (WMB)

Praneeth Satish raised his price target on Williams to \$70 from \$67 after the pipeline operator’s Q2 results, which underwhelmed some investors anticipating swift Final Investment Decision (FID) announcements. Despite that, Satish calls Williams’s project backlog “sector-leading” and forecasts an 11 percent annual EBITDA growth rate over the next three years—well above both the company’s own 5–7 percent guidance and Wall Street’s 8 percent consensus. The stock has climbed about 6.2 percent in 2025, not counting its 3.5 percent dividend yield, and remains one of Wells Fargo’s highest-conviction ideas in the midstream space.

3. The RealReal (REAL)

Ike Boruchow highlights a clear margin recovery and a return to double-digit top-line growth at The RealReal, the resale platform for luxury goods. The company’s latest results surpassed revenue and profit expectations, leading Wells Fargo to label the operational turnaround “structural rather than cyclical.” In August alone, RealReal stock surged more than 47 percent as investors rallied around the sustainability and cost-efficiency tailwinds of the resale model. Boruchow argues that RealReal is now back on a durable growth path, positioning it as a resilient play on evolving consumer preferences around circular economy and value luxury.

4. Sunrun (RUN)

In residential solar, Sunrun remains Wells Fargo’s favorite despite a roughly 50 percent run in 2025. The bank points to a “safe-harbored” status under current U.S. tax credits—ensuring predictable cash flows of about \$400 million annually through 2030—and the optionality of future grid-service revenues once the company’s installed base proves capable of delivering frequency, voltage and demand-response services. That combination of secure tax incentives and long-term monetization of behind-the-meter solar arrays underpins Sunrun’s thesis as both a defensive and growth-oriented energy pick.

5. Nextracker (NXT)

Wells Fargo sees Nextracker as the leading beneficiary of rising global solar installations, thanks to the company’s scale in single-axis tracker technology. With market share gains across North America, Europe and Asia, Nextracker is expected to exceed consensus shipment forecasts for fiscal 2026—driven by growing demand for higher-yield PV systems in utility, commercial and industrial segments. The bank underscores that, as solar projects become larger and more efficiency-driven, tracker penetration rates should climb, creating a multiyear tailwind for Nextracker’s revenue and profit expansion.

Analyst Take

Wells Fargo’s picks span a wide swath of the market, yet share a common thread: businesses with structural levers for durable margin improvement and revenue growth. For investors willing to look past near-term market noise, these five names offer differentiated exposure—whether via new subscription tiers, infrastructure backlogs, circular economy benefits or clean-energy optionality. While past performance is no guarantee, each stock carries catalysts that could unlock further upside if execution stays on track.