Following last week’s heavy selling, the market moved sharply higher at the start of this week. “Earnings season is coming up. I think that’s going to be the catalyst for the equity markets to trade back up to new all-time highs,” commented Raymond James’ Jeffery Saut. He doesn’t see the recent ‘minicrash’ as implying that anything has changed about the market’s fundamental health. “The trading pattern today has been a multi-swinging pattern between up and down and that’s usually how bottoms are formed,” the chief strategist told CNBC. But in the midst of this volatility, how do you know which stocks to turn to?
Answer: see which stocks top analysts are betting on right now. We turned to an October 16 investing report from Oppenheimer, highlighting their top stock picks for each industry. Here we take a closer look at 6 stocks which are set to outperform over the next 12 months. We dive into the investing thesis on each stock so you can see just what merits the stock’s inclusion. Two key points to note 1) all the analysts have a five-star rating, and 2) all of these stocks have a ‘Strong Buy’ consensus on TipRanks. This is based on the last three months of ratings. With that set out, let’s take a closer look:
1. Lowe’s (LOW)
Lowe’s (LOW – Research Report) is the second-largest home improvement specialty retailer in the US. So far shares are up 14% year-to-date. “For a long while, we have looked favorably on the Home Improvement Retail sector and its leading chains including Lowe’s,” writes Brian Nagel.
But why LOW in particular? “We believe LOW represents a very well-positioned chain in a sector benefiting from some of the strongest demand growth in retail” the Oppenheimer analyst explains. Furthermore, his Street-high price target of $140 indicates 32% upside potential from current levels.
