A new month of trading kicked off Monday, and JPMorgan highlighted the names it thinks can outperform in July. The S & P 500 rallied 3.5% in June, reaching all-time highs and posting its seventh monthly gain in eight.
Now, as Wall Street wades into the latter part of 2024, JPMorgan updated its Analyst Focus list. It includes its top equity ideas targeted toward growth, income, value and short strategies. Here are some of the bank's July top picks: Telecommunications giant AT & T was one of JPMorgan's newest additions to the list under the value strategy.
Shares of AT & T have climbed 13% this year. The bank's $21 price target is approximately 10% higher from Friday's close. "Unwarranted discount versus peers given improved fundamentals and EBITDA/ FCF growth," JPMorgan wrote.
JPMorgan also added First Citizens BancShares to the list, citing greater upside going forward. The bank thinks the regional bank's 2024 guidance and a strong balance sheet could propel the stock higher. Once the Federal Reserve begins cutting rates, First Citizens could benefit from a new surge of venture capital investment and the reopening of both the exit and initial public offering markets, per JPMorgan.
"With shares trading below 8x 2025e earnings, over the long term FCNCA remains our top overall pick further supported by $300B+ of US VC dry powder on the sidelines eventually getting deployed into startups, which should act as a very favorable long-term tailwind to the company's deposits," the bank.