As we head into the second half of 2024, the investment firm BTIG has shared its latest additions to its list of top stock picks. While the year started off with investors expecting a broadening of the market rally, BTIG’s chief market technician, Jonathan Krinsky, is now expressing doubts about this outcome. With the S & P 500 up 16.7% and the Russell 2000 small-cap index showing little change so far in 2024, Krinsky noted that the equity market’s leadership has been shifting between various megacap names. This concentration in large-cap stocks poses potential risks for the upcoming months, with the possibility of all these high-performing stocks declining together.
In light of the current market conditions, BTIG has included 20 new names to its list of top stock picks for the second half of the year. One of these newly added companies is athleisure retailer Lululemon Athletica. Despite a decline of over 41% year to date, analyst Janine Stichter has set a price target of $425, suggesting a 42% potential upside from the stock’s recent closing price. Stichter remains bullish on Lululemon’s growth prospects, citing the company’s solid brand and ability to navigate through various industry cycles. She sees growth opportunities in the expansion of the brand’s product lines, including men’s clothing and footwear, as well as through increased brand awareness and store footprint expansion.
Another new addition to BTIG’s list is aerospace and defense company Northrop Grumman. Analyst Andre Madrid has set a price target of $565, indicating a potential 30% increase in the stock price. Despite a 7% decline in Northrop Grumman’s shares this year, Madrid remains optimistic about the company’s position in the defense industry. He believes that Northrop Grumman is well-positioned to capitalize on growth opportunities, particularly in high-growth segments like space, and through its involvement in critical national security programs. Madrid also highlights the company’s strong free cash flow, which is returned to shareholders through buybacks and dividends, making it an attractive long-term investment in the defense sector.
Dexcom, a company that manufactures continuous glucose monitoring devices, is another new addition to BTIG’s list of top stock picks. Analyst Marie Thibault views the stock’s 8% decline year-to-date as an opportunity for investors to enter at a favorable price point. Thibault sees growth potential for Dexcom in the coming months, driven by a growing patient base that could lead to strong recurring revenue streams. With a price target of $156, representing a 37% increase from the recent closing price, Thibault remains optimistic about Dexcom’s growth trajectory and market position.
One of the returning names on BTIG’s list of top stock picks is cybersecurity company Okta. Analyst Gray Powell has set a price target of $128, suggesting a potential 33% upside for the stock. Powell believes that Okta has the potential to re-rate positively as the company improves its execution and moves past previous breach incidents. Despite a modest 6% increase in Okta’s stock price this year, Powell remains confident in the company’s growth prospects and market position.
BTIG’s latest list of top stock picks for the second half of 2024 reflects the firm’s optimism in various sectors, including retail, aerospace and defense, healthcare technology, and cybersecurity. While market conditions remain uncertain, analysts at BTIG see growth opportunities in these selected companies and believe that they have the potential to outperform in the coming months. Investors looking for potential high-growth opportunities may find value in considering BTIG’s recommendations as they navigate the remainder of the year.