As the market gets off to a strong start for the new month, Piper Sandler sees the stars aligning for certain stocks. The firm compiled its "triple select list" for November, which screens for stocks that stand to gain from a convergence of positive factors aligning: A favorable macroeconomic outlook, strong company fundamentals an attractive technical backdrop. All stocks on the Piper Sandler list have an overweight rating.
mountain Amazon YTD "We view AMZN as a top Internet name to own given improving margin profile, stabilizing AWS trends, logistics moat, and consumer mind-share," analyst Thomas Champion said. "As the company distances itself from the pandemic overbuild and the benefits of the regional fulfillment structure are realized, we see North American retail margins returning to their pre-pandemic peak." Athleisure company Lululemon also made the cut.
mountain Lululemon in 2023. Analyst Abbie Zvejnieks noted that Lululemon stock is benefiting from bullish relative strength while also closing near its 52-week high in recent days. The analyst also noted there's "constructive price action" above the stock's 40-week moving average along with "strong realized earnings growth.
mountain Amgen stock. Analyst Christopher Raymond thinks Amgen is finding support near the $250 level, which aids a relative strength outlook and presents investors with a buying opportunity. "AMGN has very high profitability compared to sector peers and offers a lower beta than most in the sector," Raymond said.