Evercore ISI has compiled a list of top stock picks for the second half of 2024, based on trends and performance in the first half of the year. The first half of trading in 2024 saw significant growth in equities, particularly driven by the artificial intelligence boom that fueled technology stocks.
Shares of the software company, Adobe, have fallen more than 5% in 2024. However, analyst Kirk Materne believes that Adobe can benefit from an acceleration in the creative economy in the coming years, as generative AI broadens the market for its products. Materne maintains an outperform rating on Adobe stock with a $650 per share price target, suggesting a 17% upside potential.
Battered pharmacy stock, CVS Health, has experienced a decline of over 27% in 2024. The company’s first-quarter earnings and revenue miss, along with a trimmed profit outlook, raised concerns among investors. However, Evercore views CVS as a “favorite large cap name with strong long-term fundamentals in growth businesses and cheap valuation vs. peers.” Analyst Elizabeth Anderson maintains an outperform rating on the stock with a $65 per share price target, indicating a potential 10% upside.
Shares of the home improvement retailer, Home Depot, have slipped more than 3% in 2024, attributed to consumers pulling back on large-scale projects and big-ticket items. High inflation and interest rates have also posed challenges for Home Depot. Analyst Greg Melich anticipates that the company’s “industry-leading” position will be beneficial when the home improvement market rebounds. Melich has an outperform rating on the stock and predicts it will reach $415 per share, representing a 21% increase from the current price.
Overall, Evercore ISI’s top stock picks for the second half of 2024 include companies such as Adobe, CVS Health, and Home Depot, which have faced challenges in the first half of the year but are expected to show positive growth moving forward. These picks are based on an investment outlook of one year or more, taking into consideration various factors affecting the market. Other stocks on the list include Amazon and Delta Airlines. Investors are advised to conduct their own research and consult with financial advisors before making investment decisions.