As stocks head to near all-time highs, Oppenheimer sees a collection of companies whose upward momentum could continue into September. Wall Street in mid-August is coming off an eight-day rally that has erased all the losses from a steep selloff earlier in the month, and then some. At Monday’s close, the benchmark S&P 500 was 1.1% below its record high in mid-July. Against this background, Oppenheimer has compiled a list of what it considers the 32 best stocks for the end of the summer and into the fall. Here’s a look at some of the names that made the Wall Street firm’s screen, all of which are rated buy by Oppenheimer analysts. Chipmaker Broadcom made the list. Shares are up 50% in 2024 through Monday. Analyst Rick Schafer says the company stands out among semiconductor industry peers 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 price target of $200 per share implies more than 19% upside going 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 has significant EPS and [free cash flow] growth, driven in part by its long track record of successful letter of credit M&A.” Sports betting platform DraftKings was also recommended by Oppenheimer. Shares are down about 2% so far this year. Oppenheimer’s Jed Kelly argues that the company can lead efforts to add new customers, currently playing illegally or outside the U.S. “We believe that the product development and customer acquisition capabilities that DKNG used to become the market leader for Daily Fantasy Sports (DFS) will enable the company to be a critical player in accelerate the shift in US sports betting from ~$150B wagered illegally/offshore to licensed domestic operators,” Kelly said. Oppenheimer’s price target of $55 per in 2024. Analyst Chris Kotowski noted that Goldman’s efforts to increase return on tangible equity could be a key catalyst for growth in the future, thanks in large part to a new management team. “We believe that this effort has a strong opportunity for success because the company has a strong franchise and there are several strategies for optimizing revenue, costs and capital, that can be implemented, but the market still values the stock as if the return will remain unchanged indefinitely. “, Kotowski wrote. Oppenheimer’s price target of $548 per share implies almost 9% upside assumptions.
Here are some of Oppenheimer’s best ideas heading into September
