Analyst Favorites for June: Where Strong Fundamentals Meet Bullish Technical Signals

Following a positive May, several stocks continue to stand out not just for their recent gains but for their strong potential moving forward. Piper Sandler’s analysis highlights a few stocks that excel across various research markers, including favorable macroeconomic conditions, robust fundamentals, and positive chart analysis. These stocks have all earned an ‘overweight’ rating, indicating significant confidence in their potential from the firm.

M&T Bank (NYSE: MTB) – Banking on Stability and Growth

M&T Bank has shown a commendable turnaround, reversing a prolonged downtrend to hit a fresh 52-week high on May 15. With a nearly 10% rise in 2024, the regional bank demonstrates solid resilience and growth prospects. Analyst Frank Schiraldi from Piper Sandler points out that M&T Bank has effectively managed its commercial real estate exposure while maintaining a healthy credit outlook, which makes its current discount an attractive entry point for investors. Moreover, Schiraldi highlights the bank’s strategy of leveraging its significant excess capital for aggressive buybacks, enhancing shareholder value.

Oracle (NYSE: ORCL) – Harnessing AI for Future Growth

Oracle has also captured attention with an 11% increase in its stock value in 2024. The company is well-regarded for its strong cash flow return on equity and above-average historical EPS growth. Analyst Brent Bracelin notes that Oracle stands to benefit greatly from the burgeoning demand for artificial intelligence, despite its slower start in the cloud infrastructure space. With AI cluster demand significantly outstripping supply, Oracle’s focus on accelerated computing could position it well for future advancements, making its stock an appealing choice for tech-focused investors.

Tractor Supply (NASDAQ: TSCO) – Leading Retail with Robust Performance

Tractor Supply has outperformed expectations with a remarkable surge of over 32% in 2024, reaching a 52-week high on May 20. The company is recognized for its exceptional cash flow profitability, which Piper Sandler’s analyst Peter Keith describes as best in class within the hardline and leisure retail segment. The firm’s macro select model identifies Tractor Supply as ideally suited for the current economic environment. Keith also echoes the company management’s outlook that deflationary pressures will be minimal this year, alleviating a significant concern for investors and underscoring the stock’s robust potential.


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