As we head into the second half of 2024, BTIG has provided an updated list of top stock picks for investors. The year started with a call for a broadening of the rally, but Chief Market Technician Jonathan Krinsky now expresses uncertainty about this outcome. While the S&P 500 has seen an increase of 16.7% in 2024, the Russell 2000 small-cap index has remained relatively unchanged. Krinsky points out that the market’s leadership has been shifting between different megacap names, leading to a high concentration in large-cap stocks that could pose significant risks later in the year.
BTIG’s list of top stock picks for the second half of the year includes 20 new names, all with a buy rating from the firm. One of the newly added additions is athleisure retailer Lululemon Athletica, which has experienced a decline of over 41% year-to-date. However, Analyst Janine Stichter has set a price target of $425, suggesting a potential increase of 42% from the previous close. Stichter highlights Lululemon’s consistent growth story backed by a strong brand and its ability to navigate various market cycles. The analyst also sees growth opportunities in the brand’s expansion into men’s clothing and new items like footwear, as well as increasing brand awareness and square footage expansion.
Another new addition to the list is aerospace and defense firm Northrop Grumman, with Analyst Andre Madrid setting a price target of $565, representing a 30% upside potential. Despite a 7% decline in the stock this year, Madrid views Northrop Grumman as one of the best-positioned defense primes in the current global threat environment. The company is expected to be among the fastest-growing defense contractors due to its exposure to high-growth end markets like space and its involvement in critical national security programs. Madrid also highlights Northrop Grumman’s strong free cash flow, which is primarily returned to shareholders through buybacks and dividends.
Dexcom, a maker of continuous glucose monitoring devices, has also been added to BTIG’s list of top stock picks. Analyst Marie Thibault believes that the stock’s 8% decline year-to-date presents an attractive entry point for investors. Thibault sees exciting growth opportunities and catalysts in the next six months for Dexcom, emphasizing the company’s growing patient base as a source of strong recurring revenue. With a price target of $156, Thibault predicts a potential 37% increase from the stock’s current price.
Cybersecurity company Okta, a returning name on the list, is also highlighted by Analyst Gray Powell, who has set a price target of $128, indicating a 33% upside potential. Powell believes that Okta has the most potential to re-rate among the covered names as execution improves and the company moves beyond past breach headlines. Okta has seen a 6% increase in its stock price this year.
BTIG’s updated list of top stock picks for the second half of 2024 reflects the changing dynamics of the market and the potential opportunities for growth in various sectors. While uncertainties remain, analysts are optimistic about the prospects of these selected companies and their ability to deliver positive returns for investors in the coming months. As always, it is essential for investors to conduct their research and due diligence before making any investment decisions based on these recommendations.