JPMorgan recommends stocks to buy if economic recovery continues into the holidays

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The investment bank screened for stocks that have lagged the recovery and may benefit from the market's rotation.

With the start of the holiday season just more than a month away, investors should keep an eye on some consumer names that may be positioned to benefit from continued economic recovery, according to JPMorgan. Last month, the Federal Reserve slashed interest rates by a half point – the first time the central bank cut rates since 2020. From there, the Federal Open Market Committee has indicated that rates could fall by another half point by the end of the year, as shown in its "dot plot.

JPMorgan rates Alaska Air overweight. Though shares have advanced more than 9%, the stock has underperformed the broader market this year. The company recently closed its $1.9 billion acquisition of Hawaiian Airlines following the U.S. Department of Transportation's clearance of the deal. Wall Street is rather bullish on the name, as 10 of the 14 analysts covering the stock have a buy or strong buy rating. The remaining four analysts have taken a neutral stance. In the retail space, E.l.

 

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