Investors should look for companies in the third quarter that are on solid ground, both in their fundamental business and their stock price, according to Piper Sandler.
The firm's yardsticks for quality fundamentals include free cash flow yield and positive earnings revisions.
Piper Sandler's macro select model includes some of the big tech companies that have outperformed in recent years, in part due to their combination of solid balance sheets and strong growth.
Two other stocks on the list with momentum are Chipotle Mexican Grill and Wingstop , up roughly 37% and 66%, respectively, in 2024.
The company said in its first-quarter report that cash was up and debt was down compared with the same period a year ago.
Persons:
Piper Sandler, Michael Kantrowitz
Organizations:
Nvidia, Microsoft, Google, Netflix, AMC Networks, Academy Sports
Locations:
Mexican