Evercore ISI has released their top stock picks for the second half of 2024, based on trends seen in the first half of the year. Despite a strong performance by equities, some key stocks faced immense pressure over the past three months.
Adobe
Shares of Adobe, a software company, have fallen more than 5% in 2024. Analyst Kirk Materne believes that Adobe can benefit from the acceleration of the creative economy in the coming years, as generative AI broadens the market for its products. Materne maintains an outperform rating on Adobe stock with a $650 per share price target, implying roughly 17% upside ahead.
Pharmacy stock CVS Health has pulled back more than 27% in 2024 due to a first-quarter earnings and revenue miss. However, Evercore views CVS as its “favorite large cap name with strong long-term fundamentals in growth businesses and cheap valuation vs. peers.” Analyst Elizabeth Anderson maintains an outperform rating on the stock, coupled with a $65 per share price target that implies about 10% upside ahead.
Shares of the home improvement retailer Home Depot have slipped more than 3% in 2024, as consumers pull back on large-scale projects and big-ticket items. Despite this, analyst Greg Melich expects the company’s “industry leading” position to benefit when the home improvement market rebounds. Melich has an outperform rating on the stock and predicts it will reach $415 per share, or about 21% above Monday’s price.
Evercore ISI’s top stock picks for the second half of 2024 include companies like Adobe, CVS Health, and Home Depot. These picks are based on investment outlooks of one year or more and take into consideration both positive and negative trends seen in the first half of the year. Investors should closely monitor these picks for potential growth opportunities in the coming months.
Overall, the 2024 market has been volatile, with certain stocks facing challenges while others have seen significant gains. It will be interesting to see how these top picks perform in the second half of the year and whether Evercore’s predictions hold true. Investors should carefully consider their own risk tolerance and investment goals before making any decisions based on these recommendations.