JPMorgan’s favorite stock picks heading into November

It’s the start of a new trading month, and some stocks are slated for further upside, according to JPMorgan. In October’s last trading session on Thursday, stocks closed lower, with the S & P 500 and the Nasdaq Composite notching their worst day in more than a month . The major averages also notched losses in October, with the broad market index and the Dow Jones Industrial Average both breaking five-month win streaks. These declines come in the thick of earnings season, which is shaping up to be rather strong. As of Monday, roughly 72% of the S & P 500 companies have reported, with about three in four beating analysts’ earnings estimates. With the election around the corner, JPMorgan has updated its top ideas list that target growth, income, value and short-selling strategies. The investment bank added one stock and removed two from October’s focus list. This month’s lone addition is Regency Centers , while CarMax and Entergy were the names removed. Here are some of JPMorgan’s picks for November. Carvana – one of the bank’s growth strategies for the new month – has had a monster year, with shares soaring more than 330%. Yet, JPMorgan thinks that trajectory can keep going, as it has an overweight rating on the stock with a $300 price target. That implies about 31% from Friday’s close. CVNA YTD mountain CVNA, year-to-date The company similarly sees strong growth ahead. On Thursday, Carvana gained more than 19% on the heels of better-than-expected third-quarter results and an increased full-year forecast for 2024. On that point, Carvana said that its adjusted earnings before interest, taxes, depreciation and amortization would come in “significantly above the high end” of its prior range of between $1 billion and $1.2 billion. Eli Lilly is another one of the bank’s growth strategies, but the company slashed its full-year adjusted profit outlook and missed revenue and earnings estimates for the third quarter. However, CEO David Ricks said that underlying demand for weight loss drug Zepbound and diabetes treatment Mounjaro still remains strong. While shares slumped more than 6% following Wednesday’s results, Lilly has risen nearly 40% in 2024. JPMorgan’s overweight rating and target of $1,100 on the name also implies more than 34% upside from here. In all, 24 of the 29 analysts covering Lilly rate it a buy or strong buy, according to LSEG. Though slightly less than JPMorgan’s, the Street’s average target still reflects substantial upside at more than 23%. Meanwhile, Caterpillar , which is one of JPMorgan’s value strategies, likewise cut its full-year sales forecast last week, saying it’ll come in “slightly lower” than last year. That sent shares down more than 2% on Wednesday. That said, shares have advanced more than 28% this year, and JPMorgan still sees gains. It has an overweight rating on the industrial giant, and its target of $500 reflects more than 31% upside, as of Friday’s close. By contrast, the average price target implies nearly 5% downside ahead, and half of Wall Street has taken a neutral stance on it, per LSEG. Among the 26 analysts covering the name, 13 have a hold rating, while nine have a strong buy or buy rating. JPMorgan also highlighted the newly added Regency Centers as one of its growth strategies for the new trading month. With an overweight rating on the real estate name, the bank cited strength in both its internal and external growth trajectories as well as its “high-quality” portfolio as drivers for growth. Shares have jumped more than 7% this year, and JPMorgan’s target implies almost 8% from Friday’s close – on par with its average target of $77.12.