As stocks rebound to near all-time highs, Oppenheimer is eyeing a collection of companies whose upward momentum can continue heading into September. Wall Street in mid-August is coming of an eight-day rally that's erased all the losses from a steep sell-off earlier in the month, and then some. At Monday's close, the benchmark S & P 500 was 1.
1% below its all-time high set in mid-July. Against this backdrop, Oppenheimer compiled a list of what it considers the top 32 stocks for the end of summer and entering the fall. Here's a look at some of the names that made the Wall Street firm's screen, all of which are buy-rated by Oppenheimer analysts.
Chipmaker Broadcom made the list. Shares have advanced 50% in 2024 through Monday. Analyst Rick Schafer says the company stands out among peers in the semiconductor industry thanks to its presence in the high-end filter market, as well as a "sticky" business segment that doesn't rely on mobile applications to drive growth.
Oppenheimer's $200 per share price target implies more than 19% upside moving forward from Monday's $167.71 close. "We believe AVGO has one of the most strategically and financially attractive business models in semiconductors," Schafer wrote as part of a 30-page report.
"AVGO enjoys substantial EPS and [free cash flow] growth driven, in part, by its long record of successful accretive M & A." Sports betting platform DraftKings was also recommended by Oppenheimer. Shares have ticked down about 2% so far this year.
Oppenheimer's Jed Kelly asserts that the company may lead efforts to add new customers who currently gamble illegally or outside of the U.S. "We believe competencies in product development and customer acquisition that DKNG utilized to become the daily fantasy sports (DFS) market leader will allow the company to be a critical player in accelerating the shift in U.
S. sports betting from ~$150B wagered illegally/offshore to licensed domestic operators," Kelly said. Oppenheimer's $55 per share price target implies almost 60% upside moving forward.
Elsewhere, shares of Wall Street investment bank Goldman Sachs have gained about 31% in 2024. Analyst Chris Kotowski noted that Goldman's efforts to increase return on tangible equity can be a key catalyst for growth in the future, thanks in large part to a new management team. "We think this effort has a strong possibility of success because the company has a strong franchise and there are multiple revenue, cost and capital optimization strategies that can be implemented, but the market is still valuing the stock as though the returns will remain unchanged indefinitely," Kotowski wrote.
Oppenheimer's $548 per share price target implies nearly 9% upside ahead..
