BTIG says S&P 500 will be stuck in a range, but thinks these stocks can outperform
The S & P 500 may be due for a pullback, but some individual names could be relative outperformers, according to BTIG. Wall Street has been in for a bumpy ride as of late. Last week, the S & P 500 dropped nearly 2% in its worst week since April, as investors rotated out of megacap tech leaders and into smaller names. On Monday, however, the benchmark experienced its best day in more than a month thanks to a tech rebound. Jonathan Krinsky, chief market technician at BTIG, said in a Monday note those choppy moves could continue from here. The technician anticipates the benchmark index will stay in a range between 5,450 and 5,600 in the coming weeks. He also thinks a decline to 5,416, more than 2% below Monday’s close, is possible in that time. “Oftentimes following a negative reversal you get a period of chop, or consolidation. If we look at the calendar right now, that makes the most sense to us with a huge week on the macro and micro front next week,” Krinksy wrote. “We think a consolidation this week in the 5450-5600 range is likely before the next meaningful move occurs,” he said. .SPX 1M mountain S & P 500 in past month What to buy Against this backdrop, the strategist identified 12 stocks that can see relative outperformance during this choppy period — regardless of how the broad market index fares. “These are names that are in good uptrends, and very close to their 52-week highs,” Krinsky wrote. “Whether or not the market correction has further to go, these names should outperform over coming months.” Among the stocks highlighted are alternative asset managers Apollo Global Management and Blackstone , which have surged 33% and 10% this year, respectively. Both are less than 1% below their 52-week highs. Analysts generally like Apollo, with 11 of the 17 covering the stock rating it a buy or a strong buy, LSEG data shows. Sentiment around Blackstone is more lukewarm, however, with 14 of 22 analysts covering the stock rating it as a hold. Technology stocks identified as potential relative outperformers include Garmin and real estate software company AppFolio . Garmin is 1.5% away from its recent high, while AppFolio is off by 0.8%. Seven of eight analysts rate AppFolio as a buy, per LSEG. Garmin, however, doesn’t have any buy ratings from analysts. Health care stocks that are opportunities include medical device maker Globus Medical . It’s up 39% this year.
#BTIG #stuck #range #thinks #stocks #outperform