S&P 500 May Be Due for a Pullback, But These 12 Stocks Could Outperform
While the S&P 500 might be poised for a correction, certain individual stocks could defy the overall market trend, according to BTIG‘s Chief Market Technician, Jonathan Krinsky. Despite the recent volatility, with the S&P 500 experiencing its worst week since April and then its best day in over a month, Krinsky believes the index will continue to fluctuate in a range between 5,450 and 5,600 in the coming weeks. He even anticipates a potential drop to 5,416 which is over 2% below Monday’s close.
Key Takeaways:
- S&P 500 is expected to consolidate in a range of 5,450 to 5,600, with a potential drop to 5,416, according to BTIG.
- 12 specific stocks are identified as potential relative outperformers, despite a possible market pullback.
- These stocks are in strong uptrends and close to their 52-week highs, suggesting continued resilience.
- The selected stocks represent diverse sectors, including alternative asset management, technology, and healthcare.
Navigating Market Volatility with Smart Stock Picks
Krinsky attributes the potential consolidation to the recent volatility and the "huge week on the macro and micro front" expected next week. He believes that a period of "chop, or consolidation" is likely. Despite this, he has identified a list of 12 stocks that he believes could outperform the broader market, regardless of whether a correction occurs. These stocks, according to Krinsky, are in "good uptrends" and are very close to their 52-week highs.
Alternative Asset Management
Apollo Global Management and Blackstone are two alternative asset managers that Krinsky highlights as potential outperformers. Both stocks have seen significant gains this year, with Apollo up 33% and Blackstone up 10%. They are also trading very close to their 52-week highs, suggesting potential for further growth. While analyst sentiment towards Apollo is positive, with 11 out of 17 analysts rating the stock a buy or a strong buy, sentiment around Blackstone is more mixed. A total of 14 out of 22 analysts rate the stock a hold.
Technology Sector Potential
Garmin and AppFolio are the technology companies that Krinsky suggests could outperform. Garmin, a global leader in GPS technology, is currently 1.5% away from its recent high. AppFolio, a real estate software company, is even closer, sitting 0.8% below its high. Analyst sentiment is strong for AppFolio, with 7 out of 8 analysts rating the stock a buy. However, Garmin has not received any buy ratings from analysts.
Healthcare Opportunities
Globus Medical, a medical device manufacturer, is the healthcare stock that Krinsky believes could outperform. The company has seen a strong year, with its stock up 39%. However, like Garmin, the stock has not received any buy ratings from analysts.
Beyond the S&P 500: Finding Growth Amidst Uncertainty
While the broader market may be headed for a correction, Krinsky believes that certain individual stocks can still see strong performance. His selections, which represent a diverse range of sectors, suggest that opportunities exist even in uncertain markets. The fact that many of these companies are close to their 52-week highs indicates potential for further growth. However, investors should always conduct thorough due diligence before making any investment decisions.
