JPMorgan said it was the start of a new trading month and some stocks were expected to rise further. Stocks closed lower on Thursday, the final trading day of October, with the S&P 500 and Nasdaq Composite notching their worst performances in more than a month. Major stock indexes also fell in October, with the broader market index and the Dow Jones Industrial Average both breaking their five-month winning streak. These declines occurred during the busiest period of earnings season, which is shaping up to be quite strong. As of Monday, about 72% of S&P 500 companies had reported earnings, with about three-quarters beating analysts’ profit expectations. With the election just around the corner, J.P. Morgan has updated its list of the best ideas for growth, income, value and short-selling strategies. The investment bank added one stock and removed two stocks from its October focus list. The only new addition this month is Regency Centers, while CarMax and Entergy have been removed. Here are some of JPMorgan’s top picks for November. Carvana, one of the bank’s new-moon growth strategies, has had a strong year, with shares soaring more than 330%. However, JPMorgan believes that trajectory can continue, as it has an Overweight rating on the stock with a $300 price target. That represents an increase of about 31% from Friday’s closing price. CVNA YTD mountain CVNA, YTD The company also expects strong growth going forward. Carvana shares rose more than 19% on Thursday on better-than-expected third-quarter results and an upgraded full-year 2024 forecast. That’s higher than the high end of the previous range of $1 billion to $1.2 billion.” Eli Lilly and Co is another growth play for the bank, but the company slashed its full-year adjusted profit forecast and missed its third-quarter revenue and profit expectations. However, chief executive David Ricks said underlying demand for weight loss drug Zepbound and diabetes treatment Mounjaro remained strong. Eli Lilly has gained nearly 40% in 2024, although shares fell more than 6% after earnings were reported on Wednesday. . Overall, 24 of the 29 analysts covering Eli Lilly rate it a “buy” or “strong buy,” according to LSEG. Although slightly lower than JPMorgan’s target, Wall Street’s average target still reflects substantial upside of more than 23%. Meanwhile, Caterpillar, one of JPMorgan’s value strategies, also lowered its full-year sales forecast last week, saying sales would be “slightly lower” than last year. That sent shares down more than 2% on Wednesday. Still, with shares up more than 28% this year, JPMorgan is still seeing gains. The firm has an “overweight” rating on the industrial giant, with a $500 price target reflecting more than 31% upside as of Friday’s close. By comparison, the average price target implies nearly 5% downside, and half of Wall Street is neutral on that, according to LSEG. Of 26 analysts, 13 have a hold rating and 9 have a strong buy or buy rating. JPMorgan also highlighted the new Regent Center addition as one of its growth strategies for the new trading month. The bank has an overweight rating on the real estate company, citing its strong internal and external growth trajectory and “high-quality” portfolio as growth drivers. Shares have gained more than 7% this year, and JPMorgan’s target implies an upside of nearly 8% from Friday’s closing price, matching its average target of $77.12.
J.P. Morgan’s Favorite November Stock Picks | Real Time Headlines
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