Oppenheimer’s top stock picks heading into year-end

There are only a few weeks left in the year, and some stocks may still be due for gains, according to Oppenheimer. Stocks are currently on pace for a winning month, with all three major averages solidly in the green. The Nasdaq Composite is leading the way, seeing month-to-date gains of about 5%. Meanwhile, the Dow Jones Industrial Average and the S & P 500 are each up more than 3% month to date. This positive performance follows President-elect Donald Trump’s White House victory earlier in the month and comes amid a relatively strong earnings season. As November nears its close, Oppenheimer has updated its top stock ideas list. This month’s update added names such as restaurant chain Shake Shack , banking giant Citigroup and retailer Instacart . On the other hand, pizza company Domino’s Pizza , trucking firm XPO and social media platform Pinterest were removed. Here are some names that made the cut. While newly added Shake Shack has had a downbeat month, seeing month-to-date losses of more than 2%, the stock has had a positive year, posting gains of more than 60% year to date. With CEO Rob Lynch being appointed to the role earlier this year, Oppenheimer still sees much more room for growth, saying it is still “early innings of an upward revision cycle.” Its $145 price target reflects almost 22% upside from Tuesday’s close. “Street estimates for [same-store sales] (~2.5% moving forward) and margin estimates (just +100bps over next two years) appear to discount refreshed strategies to drive sales, elevate throughput, and expand margins,” analyst Brian Bittner wrote. “Our work suggests these new initiatives can further strengthen already strong unit economics, positioning the company to grow units mid-teens annually and increase its outdated 450 company-owned unit target.” That said, Wall Street is less bullish on the name. Among the 24 analysts covering it, 14 have taken a neutral stance, while nine have a strong buy or buy rating, according to LSEG. It also has an average target of $132.52, which implies more than 11% upside from here. Oppenheimer believes medical technology company Transmedics is also due for a rally, as its $125 target reflects nearly 51% upside from Tuesday’s close. Although the stock has plummeted more than 34% over the past month, it is still in the green for the year, with shares rising around 5%. The company manufactures what is known as the Organ Care System, which is a multiplatform system for organ preservation and transport. To analyst Suraj Kalia, OCS is a technology that could be revolutionary in the space. “Not only does it have the potential to narrow the gap between demand and supply of donor organs, but it could also expand the pool of usable solid organs, all while standardizing processes and improving outcomes,” the analyst said. TMDX YTD mountain TMDX, year-to-date For newly added Citigroup, Oppenheimer’s $107 target implies more than 56% upside from Tuesday’s close. The stock has already soared more than 33% this year.