Wells Fargo announces its Q4 tactical ideas list and includes TSLA, LVS, ULTA, and others

With Q3 now in the rearview mirror, Wells Fargo came out on Tuesday and spotlighted ten stocks that fall inside its “Q4 ’24 tactical ideas list,” which are companies it views have the potential to see significant quarterly catalysts that could drive meaningful upside or downside.

Outlined below are the ten stocks Wells Fargo listed along with an explanation from the financial institution on why each company was chosen to fall into its Q4 ’24 tactical ideas list. Of the ten names, eight of them they are tactically overweight and the other two the bank lists as underweight.

Wells Fargo’s Overweight Tactical Ideas for Q4

Fair Isaac Corporation (FICO): “We model FY25 EPS 10% above the Street based on our view that FICO will materially raise its scores prices across mortgage, auto, and card. We expect the market will learn of these price increases by the MBA convention at the end of October.”

Las Vegas Sands (NYSE:LVS): “4Q setup is attractive with Macau EBITDA bottoming (constr. disruption peaks in 3Q), Londoner casino opening early/in-time for Golden Week, and self-help positioning LVS well into ’25 as both an idiosyncratic story and a Macau/China macro play.”

TC Energy (TRP): “TRP is spinning out its Liquids business on 10/2. Post the spin, we believe TRP could re-rate to the highest multiple in the midstream sector given its pure gas pipeline and nuclear exposure. At a 12x multiple (on 2026E EBITDA), we estimate there’s 25% upside from current levels.”

Willis Towers Watson (WTW): “WTW is the cheapest of all brokers (15.6x 2025 P/E vs. peers at 23.0x), and we see several upcoming catalysts for the shares to rerate higher paramount being Q3 earnings and its December investor day.”

Annexon (ANNX): “We like the risk/reward for shares on ANX1502’s Ph1b data in CAD and the IGOS data update, which is required for ANX005’s BLA filing. We think shares could trade to the low-to-mid-teens (~+100% upside) in our bull case.”

Arvinas (ARVN): “We believe shares are cheap (~$400M EV) and offer an attractive entry point ahead of de-risking data that will settle vepdegstrant’s key debates on: 1) its drug-drug interactions; 2) combo potential with CDK4/6s; 3) efficacy bogey and market opportunity for vepdeg’s Ph3 VERITAC-2 in 2L+ ER+ breast cancer. We think shares could ~3x in our bull case vs. -40% in our bear case.”

Axsome Therapeutics (AXSM): “We see a favorable setup heading into 4Q’24 with AXS-05 readout in AD agitation ($30 upside/$25 downside), as we think the odds of approval are currently underappreciated by the Street. The pipeline beyond AXS-05 is not priced in, and we see additional upside with positive solriamfetol/ADHD data ($10 upside).”

Myriad Genetics (MYGN): “We like the risk/reward ahead of several potential catalysts, including an analyst day, ACOG guideline updates, and data readouts. We believe MYGN can sustain +double-digit growth into ’25 and see scope for upward revisions and multiple expansion (~25% discount to peers).”

Wells Fargo’s Underweight Tactical Ideas for Q4

Tesla (NASDAQ:TSLA): “We have an Underweight rating on TSLA. We see declining delivery growth driven by lower demand and diminished return on price cuts. We estimate auto gross margin ex-credits fall by ~400bps y/y given lower volumes and continued effective price cutting.”

Ulta Beauty, Inc. (NASDAQ:ULTA): “We see risk to ULTA’s long-term targets and street estimates given larger-than-expected competitive headwinds, which we view will pressure comps and margins beyond FY25 — and see several negative catalysts to the stock including a negative revision to their long-term targets during their upcoming investor day on October 16.”