JPMorgan’s Latest Stock Picks

JPMorgan has included Netflix in its updated favorite stock list for the month, reflecting its monthly refresh of analyst recommendations. This list highlights strategies focused on growth, income, value, and short investments. The context for these changes comes amid significant market volatility influenced by President Donald Trump’s newly imposed global tariffs. Recent disappointing economic indicators have fueled concerns about a potential slowdown. While there was a slight rebound in stocks at the end of April, it wasn’t sufficient to prevent the S&P 500 and Dow Jones from closing lower for the month.

For May, JPMorgan’s new focus list features Netflix, Autozone, Digital Realty Trust, and Ulta Beauty, while removing Row, Targa Resources, Home Depot, and Wayfair. Netflix, in particular, is on a remarkable upswing, closing at $1,156.49 on Friday and achieving nearly a 30% gain this year, surpassing analyst Anmuth’s price target of $1,150. Douglas Ammus, an analyst, noted, “NFLX has established itself as a clear leader in global streaming and is on the path to becoming global television… Advertising should be a positive factor for shares in May.” Many analysts seem to back this optimistic view, although Netflix’s average price target still sits around 3% below its current valuation.

Ulta Beauty also made the list; analyst Christopher Horvers maintains a bullish outlook. Although Ulta’s shares dipped by 9% this year, Horvers projects a 20% potential increase, citing a price target of $475. He stated, “We are adding Ulta to our analyst focus list as a value idea, as increased market share performance will lead to first-class momentum and stock revaluation… Conservative margin guidance should likely prompt upward revisions in revenue.” Most analysts hold a neutral view on Ulta, with an average price target suggesting only a 4% upside.

Autozone, another newcomer, falls under the growth strategy category. Horvers expresses that there might be opportunities for price increases due to expected sales momentum driven by self-help services and market share gains. He reflected, “The potential for folding fee pricing could contribute to increased sales momentum.” Autozone’s shares rose by 17% this year, with analysts setting a price target of $3,830, indicating a roughly 2% increase from where the stock closed on Friday. Overall, analysts are generally positive on these stocks, with projections suggesting a near 2% advantage in price targets.