Oppenheimer's Top Stock Picks for Momentum Gains in the Coming Months

As the stock market continues its positive trajectory, Oppenheimer has identified a list of stocks that they believe are poised to gain momentum over the next 12 months. Despite the historical challenges of September for stocks, the current market has defied expectations, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posting gains so far this month. Oppenheimer's analysts have carefully curated a list of 32 stocks with an outperform rating, which includes both new additions and some removals from their previous recommendations.

Unlocking Opportunities in the Evolving Market Landscape

Dominating the Sports Betting Landscape: DraftKings

Oppenheimer's analysts have identified DraftKings as one of their top ideas, with analyst Jed Kelly expecting the sports betting company to capture a significant market share of 30% to 35% in the coming months. DraftKings' stock has already risen more than 16% so far this year, and Kelly's $55 price target implies an upside of almost 34% from the current trading levels. The company's strong performance is attributed to its competencies in product development and customer acquisition, which have allowed it to become a market leader in the daily fantasy sports (DFS) industry. As the U.S. sports betting market continues to evolve, Oppenheimer believes that DraftKings' expertise will enable it to be a critical player in the shift from illegal and offshore betting to licensed domestic operators.

Betting on Biotech Innovation: Viking Therapeutics

Another stock that has caught Oppenheimer's attention is Viking Therapeutics, a biotechnology company. The firm has an outperform rating on the stock and a target price of $138, implying more than 118% upside from the current market price. Viking Therapeutics' stock has already surged more than 239% this year as its experimental obesity treatment advances through clinical trials. Analyst Jay Olson believes that the company's current market capitalization of around $7 billion is "undervalued" compared to its peers, particularly if its experimental thyroid hormone beta receptor agonist (VK2809) progresses to Phase 3 development. The drug is being evaluated as a potential treatment for patients with nonalcoholic steatohepatitis (NASH), a chronic liver disease. Wall Street is unanimously bullish on Viking Therapeutics, with all 13 analysts covering the stock having either a buy or strong buy rating, and an average target price of $113.55, suggesting an upside of almost 80%.

Telecom Giant's Resilience: AT&T

Oppenheimer has also included AT&T in its list of best ideas, with a target price of $23, implying more than 6% upside. Analyst Timothy Horan views the company's high dividend yield of around 5.2% as an attractive feature, and he believes that AT&T has the ability to integrate its services in unique ways while leveraging virtualized technologies to significantly reduce operating and capital expenditures. Horan's positive outlook on AT&T is shared by analysts at Goldman Sachs and JPMorgan, who have also named the telecom giant as their top pick in the sector, citing a potential share buyback announcement as a potential catalyst. The stock has already surged 28% in 2024, further bolstering Oppenheimer's confidence in the company's prospects.

Diversifying into Healthcare: Cigna

Oppenheimer's list of top ideas also includes Cigna, a healthcare insurance provider. The firm's target price for Cigna implies more than 14% upside from the current trading levels. Oppenheimer's analysts believe that Cigna's diversified business model, which includes both healthcare and insurance services, positions the company well to navigate the evolving healthcare landscape and capitalize on emerging opportunities.

Powering the Digital Revolution: Broadcom

Rounding out Oppenheimer's list of top ideas is Broadcom, a leading semiconductor company. As the demand for advanced technology solutions continues to grow, Oppenheimer sees Broadcom as a key player in powering the digital revolution. The firm's analysts believe that Broadcom's strong market position and innovative product offerings make it well-positioned to capitalize on the increasing need for high-performance computing and connectivity solutions across various industries.In conclusion, Oppenheimer's curated list of top stock ideas reflects the firm's confidence in the potential for these companies to gain momentum and outperform the broader market in the coming months. By diversifying across sectors and focusing on companies with strong competitive advantages, Oppenheimer aims to provide investors with a portfolio of stocks that can navigate the evolving market landscape and deliver sustainable growth.