BTIG has announced new additions to its list of top stocks for the second half of 2024. While investors were mostly expecting an extension of the bull market earlier this year, BTIG’s chief market technologist Jonathan Krinsky is no longer convinced of this outcome. In 2024, the S&P 500 is up 16.7%, while the Russell 2000 small-cap index is little changed this year. However, Krinsky noted that so far, equity market leadership has shifted between various large-cap stocks. This high concentration in large-cap stocks could lead to big risks in the second half of the year. “Large-cap stocks continue to play ‘whack-a-mole,’ with one stock taking a breather while another fills the void,” he wrote. “The biggest clear risk for the second half of the year is that all of these stocks start to fall at the same time.” Against this backdrop, BTIG has published its list of top stocks for the second half of the year. BTIG has a buy rating on all of these stocks and has added 20 new stocks to this basket. One of the new additions to BTIG’s list is athleisure retailer Lululemon Athletica. Year-to-date, the company’s shares have fallen more than 41%. However, analyst Janine Stichter’s $425 price target suggests the stock could rise about 42% from Friday’s closing price. “Despite recent turmoil, LULU remains one of the most stable growth players in retail. Anchored by a strong brand, the company has proven its ability to weather various macro, fashion and competitive cycles,” the analyst wrote. Looking forward, Stichter sees growth coming from the brand’s expansion into new products, such as men’s clothing and shoes. The analyst also cited growing brand awareness and continued store footprint expansion as catalysts. Aerospace and defense company Northrop Grumman is also one of the new additions to the list. Analyst Andre Madrid’s $565 price target represents a roughly 30% upside for the stock. Northrop Grumman shares are down 7% this year. However, Madrid wrote that he sees the company as one of the “best-positioned defense prime contractors in the current global threat environment.” “We expect the company to be one of the fastest-growing defense prime contractors over the next decade for two reasons: 1) exposure to high-growth end markets like space, and 2) its position in multiple critical programs of record deemed critical to national security,” the analyst wrote. “Combined with strong free cash flow that is largely returned to shareholders through share repurchases and dividends, we see NOC as the most attractive defense stock over the long term.”Dexcom, which makes continuous glucose monitoring devices, is also a new addition to BTIG’s top ticker list. Analyst Marie Thibault believes the stock’s 8% year-to-date decline has opened an attractive entry point. “We see exciting growth opportunities and catalysts for DXCM over the next six months, and view the recent share price decline on fears of sales force disruption as an opportunity to acquire shares at a relatively cheap price,” she wrote. More specifically, she believes the company’s expanding patient base will enable it to generate strong recurring revenue. His price target of $156 is about 37% higher than Friday’s closing price of $113.69. Cybersecurity company Okta is also among the stocks returning to the list. Analyst Gray Powell has a price target of $128 on the stock, which represents an upside of about 33%. “We rerate OKTA as a top pick as we believe execution is improving and the company is more likely to be rerated than any other stock we cover as it moves further out of its headline breach from October 2023,” the analyst wrote. Okta has risen more than 6% this year. Other stocks on BTIG’s top stocks list include Steve Madden, The Block and Domino’s Pizza.
Top stocks to own in the second half of the year, according to BTIG
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