1. Costco Wholesale
Ticker: COST
Category: Food, grocery & consumer products
Rating: Outperform
Analyst commentary: "We view COST as both an attractive shorter-term beneficiary of money flows related to coronavirus fears and a longer-term winner, which should help to drive continued outperformance."
Source: Oppenheimer & Co
2. Nike
Ticker: NKE
Category: Hardlines retail and ecommerce
Rating: Outperform
Analyst commentary: "In our view, NKE represents an already dominant, legacy global brand that is now aggressively embracing the power of digital to enhance almost all facets of its business model. We look on upbeat Street forecasts and guidance as at least doable and supportive of a premium valuation. Our call on NKE is longer-term in nature and not necessarily pegged to near-term data points."
Source: Oppenheimer & Co
3. Starbucks
Ticker: SBUX
Category: Restaurants
Rating: Outperform
Analyst commentary: "As sales improve margins should also regain health. Our work suggests the financial model is well-positioned for earnings upside against consensus into fiscal '22 without assuming sales beats. This setup skews favorably against a valuation at the lower end of SBUX's historical averages."
Source: Oppenheimer & Co
4. S&P Global
Ticker: SPGI
Category: Exchanges and information analytics
Rating: Outperform
Analyst commentary: "SPGI is much more than a rating agency; in our view, the company strives to become a benchmark business. Other than enjoying the secular tailwinds, including rising corporate debt, ESG, the data explosion and active-to-passive investing, SPGI also has strong fundamentals including oligopolistic positions in many areas, a scalable platform and shareholder friendly capital return policies to support its premium valuation."
Source: Oppenheimer & Co
5. Citigroup
Ticker: C
Category: Commercial & investment banking, merchant banking, private equity
Rating: Outperform
Analyst commentary: "C remains one of the cheapest banks in our universe of coverage, at ~0.60x tangible book value."
Source: Oppenheimer & Co
6. Global Payments
Ticker: GPN
Category: Speciality finance & fintech
Rating: Outperform
Analyst commentary: "We are attracted to GPN's business model, characterized by high recurring revenue, long-term contracts, and predictable earnings/FCF."
Source: Oppenheimer & Co
7. Fulgent
Ticker: FLGT
Category: Biotechnology
Rating: Outperform
Analyst commentary: "In both of its core markets (COVID-19 and genetic testing), we believe FLGT may enjoy sustainable cost advantages based on bioinformatics and digital ordering portal, which may allow the company to take market share. In terms of COVID-19 testing, we expect PCR viral detection to be preferred to serology antibody testing to support return to school and the workplace due to clear actionable results (if positive, stay home). Once FLGT addresses near-term lab capacity constraints, we see upside to consensus revenue from COVID-19 testing."
Source: Oppenheimer & Co
8. Apellis Pharmaceuticals
Ticker: APLS
Category: Biotechnology
Rating: Outperform
Analyst commentary: "APLS is a late-stage development company targeting complement mediated diseases. It is developing APL-2 (pegcetacoplan), currently in Phase 3 development for paroxysmal nocturnal hemoglobinuria (PNH) and geographic atrophy (GA), two potential blockbuster indications with significant unmet need."
Source: Oppenheimer & Co
9. Prothena
Ticker: PRTA
Category: Biotechnology
Rating: Outperform
Analyst commentary: "PRTA's lead asset is partnered prasinezumab (Roche-partnered (RHHBY-OTC, $42.65, Not Covered)), for Parkinson's disease (PD). The company has an antibody-focused discovery platform, which is focused on misfolded proteins. Prasinezumab is a potential first-in-class, best-in-class, disease-modifying treatment for Parkinson's disease."
Source: Oppenheimer & Co
10. United Therapeutics
Ticker: UTHR
Category: Biotechnology
Rating: Outperform
Analyst commentary: "Given UTHR trading at compressed multiples to its peer group, we believe the Street is under appreciating: (1) the strength of the UTHR business model, (2) a strong and experienced management team, and (3) newly launched products and pipeline that will help bridge the "patent cliff" and get back to growth."
Source: Oppenheimer & Co
11. Simulations Plus
Ticker: SLP
Category: Biotechnology
Rating: Outperform
Analyst commentary: "We see SLP as an attractive vehicle for investors looking for exposure to the biotech innovation themes and data growth waves. Ultimately, we believe its impressive 10-year growth trajectory remains in early innings and expect its recent raise to help accelerate and strengthen market leading position."
Source: Oppenheimer & Co
12. Turning Point Therapeutics
Ticker: TPTX
Category: Biotechnology
Rating: Outperform
Analyst commentary: "We see SLP as an attractive vehicle for investors looking for exposure to the biotech innovation themes and data growth waves. Ultimately, we believe its impressive 10-year growth trajectory remains in early innings and expect its recent raise to help accelerate and strengthen market leading position."
Source: Oppenheimer & Co
13. Acceleron Pharma
Ticker: XLRN
Category: Biopharmaceuticals
Rating: Outperform
Analyst commentary: "We expect Reblozyl's scope to eventually expand to the broader β-thal and MDS populations, and view the company's $2B peak revenue guidance as conservative."
Source: Oppenheimer & Co
14. Iovance Biotherapeutics
Ticker: IOVA
Category: Emerging biotechnology
Rating: Outperform
Analyst commentary: "We believe the company's lead asset, LN-144, could find success in late-stage melanoma patients who do not respond to front-line therapy."
Source: Oppenheimer & Co
15. UnitedHealth Group
Ticker: UNH
Category: Healthcare providers & managed care
Rating: Outperform
Analyst commentary: "We believe UNH is well positioned by virtue of its diversification, strong track record, elite management team and exposure to certain higher growth businesses. The company's Optum business is a nice complement to its core managed care operations and continues to account for a large share of earnings. Furthermore, UNH's vertical integration strategy strengthens the company's competitive positioning across many areas of the healthcare landscape."
Source: Oppenheimer & Co
16. Edwards LifeSciences
Ticker: EW
Category: Medical devices
Rating: Outperform
Analyst commentary: "In our view, EW has an excellent P&L profile with strong revenues, EBIT margins, and EPS CAGR. A strong and strategic management team rounds out the picture."
Source: Oppenheimer & Co
17. Medtronic
Ticker: MDT
Category: Medical devices
Rating: Outperform
Analyst commentary: "MDT has several sales drivers, including TAVR (low-risk market expansion), Micra leadless pacemaker, neurovascular market strength, robotics (spine, general surgery), diagnostics, among others. In addition, emerging market growth remains an important tailwind."
Source: Oppenheimer & Co
18. XPO Logistics
Ticker: XPO
Category: Industrials & business services
Rating: Outperform
Analyst commentary: "XPO's base is strong/scalable via competitive new business wins paired with execution toward its internally established initiatives targeting $0.7–1.0 billion of potential profit growth opportunity. We anticipate progressively improving financial performance following a perceived 2Q20 COVID-19-driven trough."
Source: Oppenheimer & Co
19. Amyris
Ticker: AMRS
Category: Industrial efficiency & resource optimisization
Rating: Outperform
Analyst commentary: "We believe Amyris is uniquely positioned to enable growth in sustainable and organic compounds disrupting traditional chemicals, food, and consumer end markets through cost reduction and increased purity of ingredients."
Source: Oppenheimer & Co
20. BorgWarner
Ticker: BWA
Category: Industrial efficiency & resource optimization
Rating: Outperform
Analyst commentary: "As the global auto industry evolves to meet increasingly stringent emissions regulations, we expect BorgWarner to benefit from accelerating vehicle electrification, continued runway on turbochargers, and overall strong position (20–25% market share) across product lines for internal combustion engines."
Source: Oppenheimer & Co
21. Rexnord
Ticker: RXN
Category: Industrial machinery & flow control
Rating: Outperform
Analyst commentary: "We appreciate RXN's through-the-cycle core growth potential (both platforms), runway for material PMC margin expansion (led by SCOFR traction and continued RBS initiatives), and strategic M&A upside."
Source: Oppenheimer & Co
22. WESCO
Ticker: WCC
Category: Industrial Multi-Industry
Rating: Outperform
Analyst commentary: "Our Outperform rating reflects solid principal preservation on high FCF yield (viewing current low stock price as unsustainable, pending start to posttransaction debt reduction), against real option value of synergy realizations."
Source: Oppenheimer & Co
23. Terminix Global Holdings
Ticker: TMX
Category: Special situations
Rating: Outperform
Analyst commentary: "In our view, Terminix offers significant upside, as management looks to improve customer retention and achieves long-term organic growth of 5% with +30% incremental margins. The sale of SMB could close in 60-90 days and the business could generate net proceeds of $1.1B."
Source: Oppenheimer & Co
24. Alteryx
Ticker: AYX
Category: Analytics, collaboration and infrastructure software
Rating: Outperform
Analyst commentary: "Our bullish view is based on our belief that Alteryx: (1) is strongly positioned to benefit from favorable secular trends driving enterprise digitization and a rise in the importance of data citizens; (2) is exposed to a large and growing TAM with expansion opportunities into AI/ML; and (3) will continue to successfully execute on its land-and-expand model, adding new customers and driving deeper account penetration."
Source: Oppenheimer & Co
25. Verint Systems
Ticker: VRNT
Category: Communication & infrastructure software
Rating: Outperform
Analyst commentary: "Verint provides analytic software-based solutions for enterprise business intelligence, cybersecurity, communications interception and digital video security and surveillance."
Source: Oppenheimer & Co
26. Activision Blizzard
Ticker: ATVI
Category: Emerging technology & services
Rating: Outperform
Analyst commentary: "We believe momentum in CoD: Modern Warfare, CoD Mobile, as well as CoD: Warzone will offer material near-term upside and result in multiple expansion longer term as investors regain confidence in ATVI's ability to innovate, protect its core franchises, and grow its audience across platforms."
Source: Oppenheimer & Co
27. Paycom Software
Ticker: PAYC
Category: SAAS/Application Software
Rating: Outperform
Analyst commentary: "PAYC has established itself as one of the fastest growing and more profitable companies within the SaaS industry. We are confident in PAYC's multi-year growth and cash flow potential, given a strong position in the payroll and HCM market, and favorable secular tailwinds."
Source: Oppenheimer & Co
28. Zendesk
Ticker: ZEN
Category: SaaS/Applications Software
Rating: Outperform
Analyst commentary: "We are confident in Zendesk's multi-year growth and cash flow generation potential, given its leadership position in the category. We are bullish on Zendesk's future opportunity with the Sunshine platform, which we believe will be a strong growth driver for the business in the future."
Source: Oppenheimer & Co
29. Qorvo
Ticker: QRVO
Category: Semiconductors & components
Rating: Outperform
Analyst commentary: "In our view, recent strong execution has QRVO ideally positioned to capitalize on 5G structural growth. "
Source: Oppenheimer & Co
30. Universal Display
Ticker: OLED
Category: Emerging technologies & services
Rating: Outperform
Analyst commentary: "In the next five years, we expect OLED display to continue market share gain across product verticals and help bring new designs such as foldable phones/tablets to mass market. Although revenue volatility remains high on a quarterly basis, we believe the long-term trend of OLED adoption and Universal Display's competitive strength remain sound."
Source: Oppenheimer & Co
31. Verizon
Ticker: VZ
Category: Communication & cloud
Rating: Outperform
Analyst commentary: "The company has done a good job of divesting non-core assets in order to focus on wireless and enterprise and on FiOS (its fiber voice/video/data offering) in its wireline segment, and now value-added services/content."
Source: Oppenheimer & Co
32. Facebook
Ticker: FB
Category: Media & internet
Rating: Outperform
Analyst Commentary: "Given the fragmentation of media and communication, we believe consumers will increasingly find media and information through their social graph, positioning FB in the middle of this information exchange."
Source: Oppenheimer & Co
33. Lending Tree
Ticker: TREE
Category: Online travel & internet
Rating: Outperform
Analyst Commentary: "When lender demand recovers, we see TREE leveraging its lender coverage network, insurance provider integrations, and paid marketing competencies to accelerate revenue growth and generate multiple expansion."
Source: Oppenheimer & Co
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