⏱️ Second Half Stock Picks

Plus, the EV trade war continues to heat up

June 20, 2024

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

  • 🟩 | Market Snapshot: US stocks rose this morning, and the S&P 500 topped 5,500 for the first time as Nvidia continues to rally.

  • 🏚️ | In focus: The construction of new US homes fell 5.5% in May, hitting the lowest level in four years. This comes as home builders struggle with high financing costs and home buyers sit on the sideline due to elevated mortgages.

  • 🫰 | Noteworthy: Payback time… Following tariff hikes on Chinese EVs from the US and European nations, Chinese carmakers are now encouraging their government to adopt the “most severe measures,” such as a 25% tax on EU-made cars.

  • ⏱️ | The Midday Trade: Second Half Stock Picks. Scroll down for more.

Plus, today’s partner can help you become responsible with your money.

TOGETHER WITH ADVISOR

Oh Sh*t You’re a Grown Up

Suddenly you’re being quizzed on things like 529 plans and backdoor Roth IRAs. It’s time to be responsible with your money. Advisor.com lets you compare expert financial advisors to make sure you are in good hands.

STREET STATS

MORNING MOVERS

ACN: Accenture’s stock popped after reporting $21.06 billion in new bookings for the third quarter and $900 million in bookings for its GenAI services (YF)

DJT: Shares of Trump Media plummeted after the Securities and Exchange Commission greenlit the registration of additional shares (CNBC)

DELL: Dell saw its stock rise after Elon Musk announced that he will be using technology from Dell to build his xAI supercomputer (MW)

AMD: Shares of Advanced Micro Devices surged after Piper Sandler named the stock a top pick, citing easing supply constraints on its AI offerings (MW)

KBH: KB Home’s stock rose after the company beat earnings estimates on the top and bottom lines and raised its housing revenue guidance (YF)

TOP CALLS

Patterson Companies: Morgan Stanley Maintains Equal-Weight on Patterson Cos, Lowers Price Target to $28 (Trade It)

Palatin Techs: HC Wainwright & Co. Reiterates Buy on Palatin Techs, Maintains $17 Price Target (Trade It)

Jazz Pharmaceuticals: Needham Maintains Buy on Jazz Pharmaceuticals, Lowers Price Target to $210 (Trade It)

Lending Tree: Stephens & Co. Reiterates Overweight on LendingTree, Maintains $55 Price Target (Trade It)

Tesla: Morgan Stanley Maintains Overweight on Tesla, Maintains $310 Price Target (Trade It)

Taysha: JMP Securities Reiterates Market Outperform on Taysha Gene Therapies, Maintains $5 Price Target (Trade It)

THE MIDDAY TRADE

Keeping the Gains Coming

The S&P is up 15% YTD, and Wall Street experts expect the gains to continue. Now, analysts are starting to look for stocks expected to outperform over the second half of the year.

CNBC Pro has compiled a list of stocks that analysts believe have at least 20% upside based on their price targets and that are up YTD.

Berkshire & Disney

Berkshire Hathaway (BRK.B), headed by Warren Buffet, made the list. Its B shares are up over 12% YTD and have just over 20% upside based on 12-month projections. Three of four analysts covering have it as a buy or strong buy, and Argus believes it is currently trading at a cheap price relative to its financial strength.

Analysts have given Disney (DIS) around 25% upside over the next 12 months. According to Guggenheim, demand for its parks division is trending upward. Shares are up over 11% YTD.

Energy Stocks

Cottera Energy (CTRA) has only gained 3% YTD, but analysts think it could surge as much as 26.5% in the back half of 2024. UBS (UBS) has it as one of its top energy picks. Around two-thirds of analysts covering the stock give it a buy or strong buy rating. 

Chevron, which is currently trading at a forward P/E ratio below its five-year average, is up around 2% on the year. According to analysts, its current valuation points to growth. It also recently acquired Hess for $53 billion. 

These stocks could help investors keep the momentum going throughout the rest of 2024 and beyond. 

TOGETHER WITH ADVISOR

Oh Sh*t You’re a Grown Up

Suddenly you’re being quizzed on things like 529 plans and backdoor Roth IRAs. It’s time to be responsible with your money. Advisor.com lets you compare expert financial advisors to make sure you are in good hands.

SURVEY THE STREET

OpenAI has a new rival who knows the ins and outs of the AI industry.

Ilya Suskever, one of OpenAI’s original founders, is launching Safe Superintelligence Inc.

As the name would suggest, the new AI startup has a single goal and a single product: a safe superintelligence. They hope to accomplish this by insulating the new company from investment pressures that encourage revenue generation over safe AI development.

Will Safe Superintelligence Become a Viable Competitor to OpenAI?

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Plus, Yesterday’s Poll + Results:

🟨🟨🟨🟨⬜️⬜️ Yes ✅ 

🟩🟩🟩🟩🟩🟩 No ❌ 

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