The stock market has experienced a downturn in September, leaving it slightly battered and bruised as we enter October. However, this situation also brings about opportunities for investors. J.P. Morgan’s analysts have identified some promising investment ideas for the start of the fourth quarter.
New Additions to the Focus List
J.P. Morgan has updated its Focus List, which comprises the top ideas from its analysts. Three stocks have been added to this select group: DraftKings, Wynn Resorts, and Boston Scientific.
DraftKings: A Growth Opportunity
DraftKings, a sports-betting company, has made it onto the Focus List as a growth idea. The decision is based on improved fundamentals. J.P. Morgan analyst Joseph Greff recently upgraded his rating on the stock to Overweight, setting a target price of $37 by the end of 2024. In premarket trading on Monday, DraftKings saw a 0.9% increase to reach $29.70.
Wynn Resorts: A Value Play
J.P. Morgan analyst Joseph Greff is also endorsing Wynn Resorts as a value play. This Macau-focused gambling operator received an Overweight rating and a target price of $142 earlier this year. In premarket trading, Wynn Resorts was priced at $92.41.
Greff highlights that despite negative sentiment surrounding China, the Macau recovery remains intact. Earlier this year, Wynn was one of our stock picks due to the potential rebound in Macau.
Seize the Opportunities
With the stock market showing signs of volatility, now is the time to consider these investment options carefully. DraftKings presents potential for growth, while Wynn Resorts offers attractive value. As we embark on the fourth quarter, keeping a close eye on these stocks could prove rewarding in the long run.
Boston Scientific: Positioned for Multiyear Growth Cycle
Medical-technology company Boston Scientific is poised for significant growth, according to J.P. Morgan analyst Robbie Marcus. Recent positive data from a study on pulsed field ablation in patients with atrial fibrillation, or abnormal heartbeats, reinforces confidence in the company’s device pipeline.
Marcus rates Boston Scientific as Overweight, with a target price of $60 per share. Currently, the company’s shares are trading at $52.50.
Changes on the Focus List
Boyd Gaming (BYD) and Las Vegas Sands (LVS) have been replaced on the Focus List by DraftKings and Wynn, respectively. These changes reflect the preferred growth and value picks in the gambling sector.
J.P. Morgan analyst Samik Chatterjee notes that Qualcomm (QCOM) has been removed from the list due to near-term headwinds related to China’s Huawei. While Huawei is a major purchaser of Qualcomm’s smartphone processors, TF International Securities analyst Ming-Chi Kuo warns that Huawei’s adoption of self-developed processors could result in a loss of 50 million to 60 million unit orders from 2024 onwards.
J.P. Morgan maintains its Overweight ratings on Boyd Gaming, Las Vegas Sands, and Qualcomm.
