Jonathan Kitchen
Piper Sandler analysts published their monthly highest-conviction stock list.
Six stocks are featured this month, gathered from fundamental, macro, and technical research analysis, the report said.
These stocks are top decile rated by Piper Sandler. They also look attractive, according to the technical research team, and are rated overweight.
These are the “Triple Select Stocks” this month:
- Align Technology Inc. (ALGN) - The stock has reversed a multi-year downtrend, and its relative strength is improving, said Analyst Jason Bednar. He also sees earnings upside I the intermediate to long-term.
- Permian Resources (PR) - The stock has kept an upward trend for a few years now and its relative strength remains constructive, said Analyst Mark Lear.
- Reinsurance Group of America (RGA) - The stock’s shares have broken out to a new all-time high with constructive relative strength year-to-date. The company’s position as “the number one life and health reinsurer by revenues along with capital reform in Asia we believe is leading to a flywheel impact that is driving additional transactions to (RGA),” said Analyst John Barnidge.
- Simon Property Group (SPG) - The stock is coming out of a year-long rounding bottom and it is now trending higher towards its 2021 high. “The post-pandemic appreciation for physical retail by tenants and customers is fueling growing leasing spreads and rising occupancies, which are driving earnings and dividends for (SPG),” wrote Analyst Alexander Goldfarb. “Our bullish conviction derives from shrinking availability and growing retail prices allowing for rent increases that well exceed inflation.”
- Tempur Sealy International (TPX) - The stock got a new high getting out of a two-year “cup and handle pattern,” said Analyst Peter Keith. Its relative strength has been constructive, and analysts believe the company could achieve a 20% EPS CAGR over time.
- The Charles Schwab Corporation (SCHW) - The stock has reversed from a two-year downtrend and its relative strength has become positive. Analyst Patrick Moley said that the company has been negatively impacted by customers “cash sorting” due to the Fed’s rate hikes in the first quarter of 2022, but “this behavior appears to be abating as the Fed holds rates steady and customers get closer to their transactional cash levels.”