As the new trading month began on Monday, JPMorgan highlighted stocks it believes can outperform in July. The S&P 500 rose 3.5% in June to hit an all-time high, marking the seventh of eight consecutive months of gains. Now that Wall Street is heading into the second half of 2024, JPMorgan has updated its Analyst Focus List, which includes top stock ideas across growth, earnings, value and short strategies. Below are some of the bank’s top picks for July. Telecommunications giant AT&T is one of JPMorgan’s new additions to the list in its value strategy. AT&T shares have risen 13% this year. The bank’s $21 price target is up about 10% from Friday’s closing price. “Unjustified discount to peers given improving fundamentals and EBITDA/FCF growth,” JPMorgan wrote. JPMorgan also added First Citizens Bankshares to the list, citing strong upside potential going forward. The bank believes the regional bank’s 2024 guidance and strong balance sheet could drive the stock higher. According to JPMorgan, First Citizens could benefit from a new surge in venture capital investments and the reopening of the exit and initial public offering markets if the Federal Reserve starts to cut interest rates. “With shares trading below eight times projected 2025 earnings, FCNCA remains our top overall pick over the longer term, which should ultimately be further supported by more than $300 billion in dry U.S. venture capital powder being deployed in startups, providing very favorable long-term tailwinds for the company’s deposits,” the bank said. First Citizens shares have risen 20% this year. JPMorgan’s $2,400 price target suggests the stock could rise nearly 43%. Another stock that JPMorgan looked at this month was semiconductor maker Broadcom. Analyst Harlan Sahr’s $2,000 price target is about 25% above the stock’s Friday closing price. Jefferies reiterated its buy recommendation on the company last month, echoing JPMorgan’s bullish view. Bank of America also raised its price target to $2,150 from $2,000, calling the stock one of its top picks. “AVGO’s diverse growth drivers, highly regarded management team, and unique track record of capital appreciation, dividend growth, and above-market dividend yields justify a premium multiple,” Bank of America analyst Vivek Arya wrote last week. He also has a $2,150 price target. Broadcom shares are up 45% through 2024. PVH also made the list. Shares of the company, which owns brands such as Calvin Klein and Tommy Hilfiger, have fallen 14% this year. But analyst Matthew Voss’s $157 price target means the stock could rise 48% from here. UBS analyst Jay Sohl is similarly bullish on the company, maintaining a buy rating on the ticker and raising his price target by $14 to $174 last month. Sohl’s price target increase comes after the company’s first-quarter financial report beat analysts’ expectations on both profit and sales, a trend the analyst believes could continue. “We believe PVH has the brand strength and balance sheet to drive earnings growth over the long term,” Sohl wrote. “Importantly, we expect to see an increasing number of above-expected and upside quarters over the next few years.” [next 12 months]Other stocks on JPMorgan’s list include industrial products maker Danaher, energy company Entergy and chemicals maker DuPont de Nemours.
Here are JPMorgan’s picks for hot stocks heading into July
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