Credit Suisse believes the July stock market rally will continue and has a list of names that could continue its momentum from here. Stocks cap a strong month on Friday, surging off June lows, as traders bet the market has priced in the most likely recession expectations and moved into assets. more risk. The tech-heavy Nasdaq Composite was up more than 10% in July. According to Credit Suisse, the comeback could continue into August, led by more speculative assets. The investment bank pointed to a more dovish stance from the Federal Reserve, which last week offered assurances that the US economy doesn’t shrink, thanks to the support of a strong labor market. “With commodity prices falling and economic data down, inflation is projected – based on both breakeven forecasts and economists’ forecasts – to taper off over the next 24 months,” said senior equities strategist. of Credit Suisse, Patrick Palfrey wrote in a note Thursday. “We believe this will lead the Fed to shift to more dovish policy as we move into the latter part of the year, supporting the continuation of the market’s current rally and leading the way,” he said. Palfrey added. To be sure, today’s favored stocks could hurt if investors revert to a defensive stance. However, Credit Suisse identifies the stocks most likely to be exposed to the five factors that have led to this month’s rally and could continue to drive momentum higher: Speculative, expensive, bearish, high volatility and shortage. Since the June lows, speculative stocks that are closely correlated with Bitcoin have gained 16.8%, while expensive assets with high P/Es are up 16.6%. Meanwhile, the S&P 500 index is back 9.9% year-on-year. Here are 10 names that Credit Suisse believes can rise further from current prices: Generac meets Credit Suisse’s criteria and could continue to rise from here, the bank said. Backup power was recently overrated by Wells Fargo, which sees the Wisconsin-based company as a climate change winner as homeowners deal with an increasingly unstable power grid. As of now, the stock is down 23%. Etsy could continue to move higher above current price levels. The e-commerce company has “best-in-class market model with a visionary management team,” according to a note last month from Raymond James that rated Etsy better. Shares are 50% lower this year. Some travel stocks could get a boost from any continued rally. Susquehanna began covering Norwegian Cruise Line Holdings last month with a positive review, citing its pricing power. Shares are down about 40% this year. Other stocks featured on the Credit Suisse display include Ceridian, American Airlines, Carnival, Caesars Entertainment, Penn National Gaming, Salesforce and Intuit.
