Wolfe Research has named three selected stocks

According to Wolfe Research, the most interesting companies in the sector ahead of second-quarter earnings reports are MSCI, S&P Global, and Moody's.

Based on data from mid-July, the Wolfe-relevant index grew by 4%, while the S&P 500 gained 1%. According to analyst Scott Wuertz, the sector companies' results are supported by increased activity in the bond market and stock market growth.

Wolfe Research's top pick is MSCI. The company's growth, in their view, will be supported by demand for index products and commission revenues generated from stock market expansion. MSCI's stock price target is $710.

S&P Global is in second place. Wolfe Research assumes that the volume of bond issuance could have a positive impact on the company's results and annual guidance. The stock price target is $515.

The third company is Moody's. According to analysts' assessment, increased activity in the bond market will help the company's results, although S&P Global has greater opportunity for annual guidance growth. Moody's stock price target is $550.

Source: Investing.com