Oppenheimer’s top stock ideas heading into October

With stocks on track for yet another positive month, Oppenheimer is spotlighting several names it believes are poised to gain momentum over the next 12 months. September has been historically tough for stocks, with the S & P 500 averaging a loss of 0.7% since 1950. But this September has so far told a different story, as the broad market index has risen more than 1% month-to-date. The Nasdaq Composite and the Dow Jones Industrial Average have also seen gains, advancing 2% and nearly 1%, respectively. This comes after all three major averages recovered from the Aug. 5 global sell-off to close out last month higher. That marked the fourth winning month in a row for the S & P. With just a few trading sessions remaining in September, Oppenheimer has put together a list of its 32 best stock ideas ahead of October, all of which have an outperform rating. Domino’s Pizza and Uber were among the names added to the list, while Goldman Sachs and Instacart were among those removed. Here are some names that made the cut. Newly added DraftKings is one of the firm’s top ideas, with analyst Jed Kelly expecting the sport betting company to snag about 30% to 35% market share over the coming months. DraftKings shares have risen more than 16% so far this year, but Kelly’s $55 price target implies almost 34% upside from Wednesday’s close. The company’s stock rose 5% Wednesday after rival Flutter Entertainment revealed plans to more than double its core profit by 2027 and buy back $5 billion of its own shares. Much of the growth the Fan Duel parent outlined is coming from the booming U.S. market. “We believe competencies in product development and customer acquisition that DKNG utilized to become the daily fantasy sports (DFS) market leader will allow the company to be a critical player in accelerating the shift in US sports betting from ~$150B wagered illegally/offshore to licensed domestic operators,” the analyst wrote in the note to clients. DKNG YTD mountain DKNG, year-to-date Biotechnology stock Viking Therapeutics also made the list. Along with its outperform rating, the firm has a target of $138, implying more than 118% upside, as of Wednesday’s close. The stock has already surged more than 239% this year as its experimental obesity treatment advances through clinical trials. Analyst Jay Olson believes that the stock’s current market cap – which is around $7 billion – is “undervalued” compared with its peers if the company’s experimental thyroid hormone beta receptor agonist (VK2809) ends up moving on to Phase 3 development. The drug is being considered as a treatment for patients with a chronic liver disease known as nonalcoholic steatohepatitis, or NASH. Wall Street is also entirely bullish on Viking. Of the 13 analysts covering the stock, all of them have either a buy or strong buy rating, and its average target of $113.55 implies almost 80% upside ahead. Telecommunications stock AT & T was another best idea, with its target of $23 implying more than 6% upside. Analyst Timothy Horan views its high dividend yield of about 5.2% as “attractive.” “It has the ability to integrate its services in unique ways, and we see substantial room to use virtualized technologies to greatly reduce operating and capital expenditures,” the analyst wrote. Horan isn’t the only one who believes this. This week, analysts at both Goldman Sachs and JPMorgan also named AT & T as their top telecom pick, citing a potential share buyback announcement as a catalyst. The stock has surged 28% in 2024. Other names that made the list include Cigna , whose target implies more than 14% upside, and chip giant Broadcom .