Oppenheimer’s top stock ideas heading into October
With the stock on track for another good month, Oppenheimer highlights several names he believes are poised to gain momentum over the next 12 months. September was historically difficult for stocks, with the S&P 500 averaging a loss of 0.7% since 1950. But this September has told a different story, with the broad market index up more than 1% month to date. . The Nasdaq Composite and the Dow Jones Industrial Average also saw gains, advancing 2% and about 1%, respectively. This comes after all three major moving averages were found in the August 5 ground sale to close last month higher. That marked the fourth straight month of gains for the S&P. With just a few trading sessions left in September, Oppenheimer compiled a list of its 32 best stock ideas ahead of October, all of which have an outperform rating. Domino’s Pizza and Uber were among the names added to the list, while Goldman Sachs and Instacart were among those removed. Here are some words that make a tradition. The recently added DraftKings is one of the firm’s top prospects, and analyst Jed Kelly expects the sports betting company to gain about 30% to 35% of market share in the coming months. Shares of DraftKings are up more than 16% so far this year, but Kelly’s price of $55 represents a nearly 34% upside from Wednesday’s close. The company’s stock rose 5% on Wednesday after rival Flutter Entertainment revealed plans to double its core profit by 2027 and buy back $5 billion of its shares. Most of the growth that Fan Duel’s parent has shown comes from the booming US market. “We believe the capabilities in product development and customer acquisition that DKNG has leveraged to become a daily sports (DFS) market leader will allow the company to be a key player in accelerating the shift in US sports betting from ~$150B in illegal/offshore licensed domestic operators,” they wrote. DKNG YTD mountain, year-to-date stock for Viking Therapeutics also made the list. Along with its best-performing estimates, the company aims to earn more than 118%, since Wednesday’s close. The stock is already up more than 239% this year as its obesity treatment advances through clinical trials. Analyst Jay Olson believes the stock’s current market cap — about $7 billion — is “undervalued.” compared to its peers if the experimental thyroid hormone beta receptor agonist (VK2809) eventually advances to Phase 3 development. The drug is being considered as a treatment for patients with chronic liver disease known as nonalcoholic steatohepatitis, or NASH. Wall Street is also completely bullish on Viking. Of the 13 analysts covering the stock, all have a buy or strong buy rating, and the average target of $113.55 means about 80% ahead. AT&T telecommunications stock was another top performer, with a target of $23 implying upside of more than 6%. Analyst Timothy Horan is looking at an annual yield of 5.2%. “It has the ability to combine its services in unique ways, and we see a great opportunity to use virtual technology to significantly reduce operating costs and expenses,” wrote the analyst. Horan is not the only one who believes this. This week, analysts at Goldman Sachs and JPMorgan once again named AT&T as their top telecom pick, citing a potential share buyback announcement as a trigger. The stock is up 28% in 2024. Other names that made the list include Cigna, whose target means a rise of more than 14%, and chip giant Broadcom.
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