The new month of trading begins on Monday, with JPMorgan highlighting stocks it believes are likely to outperform in July. The S&P 500 rose 3.5% in June, hitting a record high and recording gains for the seventh month in eight consecutive months. Now, as Wall Street heads into the second half of 2024, JPMorgan has updated its analyst focus list. It includes top stock ideas for growth, income, value, and short strategies. Here are some of JPMorgan’s top picks for July: Telecommunications giant AT&T is one of the latest companies to join the list under JPMorgan’s value strategy. AT&T shares have risen 13% this year. The bank has a price target of $21, about 10% above Friday’s closing price. “Given improving fundamentals and EBITDA/FCF growth, this represents an unnecessary discount to peers,” JPMorgan wrote. JPMorgan also added First Citizens BancShares to the list, citing greater upside potential ahead. The bank believes 2024 guidance and strong balance sheets from the region’s banks could push the stock higher. JPMorgan said First Citizen could benefit from a new surge in venture capital and the reopening of exit and IPO markets once the Fed starts cutting interest rates. “With shares trading below 8x forward 2025 P/E, FCNCA remains our top overall pick in the long term, further supported by $300B+ of U.S. VC dry powder ultimately being deployed into startups, which should Becoming a very beneficial long-term driver of the company’s deposits,” the bank said. First Citizens’ shares are up 20% this year. JPMorgan’s $2,400 price target implies a potential upside of nearly 43%. Another name on JPMorgan’s focus list this month is semiconductor maker Broadcom. Analyst Harlan Sur has a $2,000 price target, about 25% higher than the stock’s closing price on Friday. Jefferies reiterated its buy rating on the company, echoing JPMorgan’s bullish sentiment last month. Bank of America also raised its price target to $2,150 from $2,000, calling the stock one of its top picks. Bank of America analyst Vivek Arya wrote last week: “AVGO’s diversified growth momentum, well-respected management team, and unique track record of capital appreciation, dividend growth, and above-market dividend yields justify the premium multiple. He also set a price target of $2,150. Shares of Broadcom, which owns brands like Calvin Klein and Tommy Hilfiger, are down 14% this year, however, according to analyst Matthew Boss. The U.S. dollar price target means the stock could rise 48% from here. UBS analyst Jay Sole is also bullish on the company, maintaining a buy rating on the stock. The price target was raised by $14 to $174. Sole raised its price target after releasing a first-quarter financial report that beat analysts’ expectations for its earnings and revenue. Analysts believe that trend may continue. Wrote: “We believe PVH has the brand strength and balance sheet to drive long-term earnings growth. “Importantly, we expect more quarterly beats and financings over the next 12 months. ” Other stocks on JPMorgan’s list include industrial manufacturer Danaher, energy company Entergy and chemicals company DuPont De Nemours.
