Pencils down, it’s time for lunch. Here’s what you missed this morning:

• 🟨 | Market Snapshot: US stocks hovered near flat Monday morning as investors wait for May retail sales data, which will be released tomorrow.

• 🏗️ | In focus: The Empire State Manufacturing index showed that manufacturing activity improved in the New York area, and the six-month outlook rose to its best level since early 2022.

• ⬆️ | Noteworthy: Goldman Sachs hiked its year-end S&P 500 price target by 400 points to 5,600. Goldman’s Chief US Equity Strategist David Kostin cites continued strong corporate earnings reports.

• 🦵 | The Midday Trade: A Leg Up on the Competition. Scroll down for more.

And, want to win a $50 Amazon gift card? Please click here to take The Street Sheet & Griffin Asset Management Summer 2024 Wealth Survey.

TOGETHER WITH BETTERMENT

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STREET STATS

MORNING MOVERS

Broadcom, Xponential Fitness, & AMC Networks

AVGO: Broadcom’s stock continues to rally after posting an earnings beat for the second fiscal quarter and a 10-for-1 stock split last Wednesday (CNBC)

XPOF: Shares of Xponential Fitness popped after the company announced that Mark King, former Taco Bell CEO, was hired to be the new chief executive (MW)

BBY: Best Buy’s stock rose after UBS analyst Michael Lasser upgraded shares to Buy from Neutral, citing the coming electronics replacement cycle (Barron’s)

ADSK: Software provider Autodesk saw its stock gain on news that activist fund Starboard Value now has a $500 million stake in the company (CNBC)

AMCX: Shares of AMC Networks plummeted following news that the company filed to sell $125 million in convertible notes through a private offering (MW)

TOP CALLS

Corning: Fox Advisors Upgrades Corning to Overweight, Announces $45 Price Target (Trade It)

Jabil: JP Morgan Maintains Overweight on Jabil, Lowers Price Target to $145 (Trade It)

Axis Capital: Keefe, Bruyette & Woods Maintains Outperform on Axis Capital Holdings, Maintains $86 Price Target (Trade It)

Cheniere Energy: TD Cowen Maintains Buy on Cheniere Energy, Raises Price Target to $185 (Trade It)

Regeneron: JP Morgan Maintains Overweight on Regeneron Pharmaceuticals, Raises Price Target to $1150 (Trade It)

Cytokinetics: HC Wainwright & Co. Reiterates Buy on Cytokinetics, Maintains $90 Price Target (Trade It)

THE MIDDAY TRADE

A Leg Up on the Competition

Tough Environment for Restaurants

Consumers' unwillingness to spend money on things like eating out, largely due to inflation, has Goldman Sachs (GS) feeling a little bearish about the restaurant industry.

However, according to the investment bank, there are a few brands that could come out on top. According to analyst Christine Cho, foot traffic and unit growth will be major factors in separating the winners from the losers. Cho believes fast-casual restaurants may have a leg up due to their perceived combination of quality and value.

Chipotle

Chipotle (CMG) is Goldman’s favorite restaurant stock. According to Cho, it has beaten its $3 million average unit volume target in terms of annual sales and is on the road to $4 million.

Cho believes Chipotle is able to scale its business profitably while avoiding adverse effects on food quality and customer experience.

Chipotle shares recently hit an all-time high and are up 44% YTD. Goldman is predicting around 18% upside over the next 12 months on the backs of industry leading profit margins and earnings growth.

Small-Caps

Sweetgreen (SG) and Shake Shack (SHAK) are the firm’s top small-cap restaurant picks. It seems that both brands are capable of quickly increasing market share using digital improvements to consumer experience and brand awareness.

The bank is predicting between 15% and 19% growth, respectively, for these stocks over the next 12 months. Sweetgreen has exploded, up 189% YTD, while Shake Shack is up 21% over the same period.

The restaurant business is tough, especially now, as consumers watch every penny. If Goldman is right, these stocks could rise above their competition.

TOGETHER WITH BETTERMENT

Put your money to work in a high-yield cash account with up to $2M in FDIC† insurance through program banks.

Get started today, with as little as $10.

SURVEY THE STREET

This month, we’ve seen some major shakeups to the list of the world’s most valuable companies.

On June 5th, Nvidia surpassed Apple to become the second-largest public company.

Not to be outdone, Apple’s stock has seen a massive rally following its Worldwide Developers Conference. Last Wednesday, Apple reclaimed its crown as the world’s most valuable company, kicking Microsoft and Nvidia down to the #2 and #3 spots, respectively.

Plus, Last Friday’s Poll + Results:

Will Remote Work Decline and Commercial Real Estate Rebound in 2025?

🟩🟩🟩🟩🟩🟩 Yes ✅ 

🟨🟨🟨🟨⬜️⬜️ No ❌