Investors should take advantage of these unique buying opportunities heading into earnings, according to Wall Street analysts. These companies represent some of the highest-quality buying opportunities, analysts say. Of the 64 companies in the S & P 500 that have reported earnings this season, about 77% beat Wall Street analysts' expectations, according to Refinitiv. CNBC Pro combed through recent Wall Street research to find the top stocks to buy as earnings continues. They include Mondelez , Sherwin-Williams, Vimeo , Chipotle and Ingersoll Rand . Mondelez Mondelez was called one of the most "well-hedged" companies against food inflation by Stifel. The snacks maker, which is scheduled to report earnings Jan. 27, has tremendous growth upside, analyst Christopher Growe said in a recent note to clients. Mondelez has generally been able to weather the inflation storm by continuing its aggressive pricing push along with strong productivity, Growe said. "We hold a strong growth outlook for Mondelez continuing through 2021 and 2022 supported by its market share gains during the pandemic, continued growth in its categories, and its emerging market presence," he added. The firm also praised Mondelez's robust balance sheet and is bullish on it's recent $600 million acquisition of snacking company, Chipita. The stock is relatively inexpensive, according to the analyst, and is up 3.1% year to date. "We find the valuation for the shares attractive for a best-in-class Consumer Staples business," Growe wrote. Vimeo Shares of the video services platform are down 23% this month, but Jefferies analyst Brent Thill thinks investors shouldn't give up on the stock just yet. The company is due to report earnings in February, and Thill is bullish on Vimeo's long-term prospects. "We expect y/y revenue growth will bottom out in 1H22 and accelerate through the year and into 2023," he wrote. Thill also said Vimeo is still in the early stages of what he calls a "massive enterprise opportunity." "VMEO's platform has the video tools that enterprises need, and helps to consolidate spend from multiple point solutions," he added. Thill also said the stock is "compelling," noting there's ample opportunity for Vimeo to meet growth targets. "We believe VMEO is a best-in-class video asset that is well-positioned to see 25%+ growth over the next few years." Ingersoll Rand Ingersoll is on its way to becoming a "high-quality compounder," investment firm Baird said recently. The industrial solutions company has an "underappreciated" growth profile and is in the midst of a "significant" internal transformation, analyst Michael Halloran wrote. Shares are down more than 7% this year, and Halloran acknowledged the near-term setup could be choppy. Still, he urged investors to buy the dip head of the company's earnings report in late February. "IR's financial profile should track toward best-in-class over time," he said. Halloran went on to praise the company's management and says patient shareholders will be rewarded over time. "We continue to like IR as a long-term holding and would use any weakness in the front part of 2022 to position for compounding long-term gains," he said. Sherwin-Williams- Atlantic Equities, Overweight rating "We view Sherwin-Williams as the best-in-class coatings manufacturer, favourably exposed to the attractive long-term trends within the architectural end-market. While Omicron disruption and raw material constraints are near-term headwinds, we view these challenges as transitory and expect SHW to capitalise on this difficult backdrop to capture even more share. The strong long-term growth outlook therefore remains unchanged." Mondelez- Stifel, Buy rating Cost inflation and supply chain issues remain hot topics among investors & while Mondelez has been well hedged, has strong productivity initiatives & is pushing pricing through aggressively, it is not immune to this difficult environment. ... .We hold a strong growth outlook for Mondelez continuing through 2021 and 2022 supported by its market share gains during the pandemic, continued growth in its categories, & its emerging market presence. ... .We find the valuation for the shares attractive for a best-in-class Consumer Staples business..." Ingersoll Rand- Baird, Outperform rating "A Budding High-Quality Compounder. ... .IR's financial profile should track toward best-in-class over time. ... .Management remains focused on aligning its businesses to become market share leaders in high growth, mission critical flow technologies/applications.We continue to like IR as a long-term holding and would use any weakness in the front part of 2022 to position for compounding long-term gains." Chipotle- Morgan Stanley, Overweight rating "Best in class growth; shares off 20% vs. peak, with unique pricing power. We are upgrading the shares of CMG to OW after a ~20% pullback from recent highs and similar magnitude of underperformance vs. large cap QSR peers since summer. While we don't have a changed view of fundamentals here, we view this as an attractive entry point for the best-in-class growth stock in restaurants." Vimeo- Jefferies, Buy rating "We expect y/y revenue growth will bottom out in 1H22 & accelerate through the year and into 2023. ... .Still in the early innings of a massive enterprise opportunity. We believe the enterprise opportunity is still early innings with only ~6,000 enterprise customers comprising only ~30% of total VMEO revenue as of 3Q21. VMEO's platform has the video tools that enterprises need & helps to consolidate spend from multiple point solutions. ... .Valuation is compelling for a high-growth SaaS business that has ample runway for continued growth."
Dirk Van de Put, CEO of Mondelez International.
Adam Jeffery | CNBC
Investors should take advantage of these unique buying opportunities heading into earnings, according to Wall Street analysts.