Oppenheimer has just released a highly-prized list of 20 ‘buy’ and ‘sell’ global stocks that are currently on breakout watch. Interestingly, the list highlights both bullish stocks as well as bearish stocks. This means we can see which stocks are outperforming, and which stocks are under-performing, their respective sectors.
Overall, however, the November 4 report takes an upbeat view of the current environment: “We get it, markets do cycle and bull markets do correct, but we also know that market timing is a trying task. With an emphasis on process, our indicators argue for investing like this is a healthy, middle-innings bull cycle… we view the growing list of global markets rallying to new all-time highs as confirmation of the mid-cycle conditions being exhibited in our macro indicators.”
From Oppenheimer’s list we pinpointed the 5 best outperforming stocks with a Strong Buy consensus rating from the Street. TipRanks tracks the latest market activity of over 4,700 analysts- allowing us to find the most compelling investing opportunities. These are the stocks with the strongest support from analysts with a proven track record of success. We can also gauge the upside potential for these stocks based on the average price target of analysts over the last three months.
Let’s take a closer look at these 5 top stock ideas now- and their weaker counterparts. Note that you can click on the chart screenshot for further insights into the stock’s latest ratings.
1. Amazon (NASDAQ:AMZN)
“We remain bullish on the Internet Catalog & Retail industry for exposure to Consumer Discretionary, and believe AMZN’s breakout above multi-month resistance is marking a resumption of the stock’s long-term uptrend” writes Oppenheimer. Indeed, the average top analyst price target of $1246 suggests e-commerce behemoth AMZN still has considerable upside potential left of close to 11%. Also, if we look at only top analyst ratings, Amazon has received a whopping 28 back to back buy ratings in the last three months alone.
The firm is bullish on AMZN over mass media corporation CBS Corp (NYSE:CBS). It says, “For a source of funds, we remain bearish on the Media industry and expect CBS to continue to trend lower on both an absolute and relative basis.”
2. UnitedHealth Group Inc (NYSE:UNH)
UnitedHealth is best-known as the US’s largest health insurer, with more than 45 million members. At the same time, the company has also expanded into the lucrative prescription market with its fast-growing Optum unit. It now boasts over 400 surgery centers and fills more than 100 million prescriptions per month.
“UNH has been one of our longest-standing recommendations on our [global breakout] list, and is a good example of the persistence of market leadership. We still see upside in the uptrend, and we accordingly recommend buying the stock” says Oppenheimer.
Indeed, the stock is already up by 33% year-to-date, and is now trading at record highs of $213. But with a $225 average price target, analysts are confident that the stock has upside potential still to run.
Oppenheimer prefers UNH to Patterson Companies Inc (NASDAQ:PDCO), a medical supplies conglomerate in the business of veterinary and dental products. PDCO has a Hold analyst consensus rating.
3. Equinix (NASDAQ:EQIX)
REIT Equinix calls itself the ‘interconnection leader’. In other words, this California-based company specializes in enabling global interconnection between organizations and their employees, customers, partners, data and clouds. And now Oppenheimer sees a fresh breakout for EQIX.
Indeed, in the last few weeks the stock has been upgraded from Hold to Buy by both Barclays and JP Morgan. For example, top JP Morgan analyst Philip Cusick also ramped up his price target on the stock from $480 to $550 on November 2 (13% upside). He calls Q3 results solid and says the stock has a strong outlook. Cusick sees solid demand in core areas, and is also optimistic about new growth initiatives.
Conversely, Oppenheimer is bearish on SL Green Realty (NYSE:SLG). This is a REIT which invests in offices and shopping centers in New York.
4. Monster Beverage Corp (NASDAQ:MNST)
“MNST’s breakout at $54 is now support and projects towards $68, by our analysis” says Oppenheimer of the soft drinks giant. At $68, this is the stock’s highest price target yet- and suggests big upside potential from the current share price of just under $58. Monster is the name behind several big-name brands including the popular Relentless energy drinks- which contain at least 160mg of caffeine in a standard can.
The firm recommends picking MNST over global food processing company Archer Daniels Midland (NYSE:ADM). “ADM has fallen below key support to complete a year-long topping process, by our analysis. We see downside risk towards $37” writes Oppenheimer.
5. Skyworks Solutions (NASDAQ:SWKS)
Semiconductor manufacturer Skyworks has the seal of approval from both Oppenheimer and the Street in general. The firm says: “Within a relatively and broadly strong Technology sector, we see pre-breakout potential for SWKS, which has come into an important test of 2015 resistance, and offers rotation potential vs. the sector, too.”
Indeed, several top analysts (for example, B Riley’s Craig Ellis) believe the stock is moving more towards $130 levels. This translates into 18% upside potential from the current share price of $111.
On the other hand, Oppenheimer is bearish on the outlook for tech giant IBM (NYSE:IBM). Oppenheimer writes: “IBM is inflecting lower from the bearish slope of its smoothed trend, and is still within the limits of its multi-year trend of underperformance, by our analysis.” The stock has a cautious Hold analyst consensus rating.
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