Oppenheimer Market Analysis
The bear market of 2022 was a tough year for stock investors, with the S&P 500 losing nearly 20% of its value. However, some strategists believe that the coming year could see a recovery or at least a partial rebound. John Stoltzfus, Chief Investment Strategist at Oppenheimer Asset Management, is optimistic about the future. Despite inflation running at an annualized rate of more than 7% and the Federal Reserve raising interest rates to 4.25%, Stoltzfus believes that the end of the period of “free money and overstimulation of the economy” suggests that better times are ahead.
In a recent note, Stoltzfus predicted a 15% gain for the S&P 500 by the end of the year. He noted that while Fed Funds rate hikes can cause market volatility, they have ultimately had a positive effect on the economy and markets in the past. By uncovering excesses and providing an exit strategy, they can lead to a sustainable economic recovery.
If current economic policy makers are setting the stage for a sustainable recovery, some stocks are likely to lead the way. Oppenheimer’s top analysts have identified two stocks in particular that could see significant growth in the next twelve months. These stocks are well positioned to take advantage of the economic recovery and could be worth considering for investors looking to capitalize on the market rebound.
Overall, it looks like the outlook for the stock market in 2023 is positive, with the S&P 500 expected to gain 15% according to Oppenheimer’s Chief Investment Strategist. While there may be some bumps along the way, the underlying conditions seem to be in place for a sustainable economic recovery. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions.
Oppenheimer’s Top 2 Stock Picks:
XPO Logistics (XPO:NYE)
Oppenheimer has identified XPO Logistics, a Connecticut-based firm specializing in less-than-truckload shipping, as a potential stock to take off in the next twelve months. The company has a strong financial performance, with operating income of $185 million in 3Q22, up 65% year-over-year, and $265 million in cash from operations. Oppenheimer analyst Scott Schneeberger is optimistic about XPO’s growth prospects and believes that the company is well positioned for operational and financial improvement. He has given the stock an Outperform rating and a $45 price target, suggesting a one-year upside potential of approximately 35%. The consensus on Wall Street is positive, with 11 Buy ratings and 3 Holds, giving XPO a Strong Buy consensus rating.
Papa John’s International (PAPA:NYe)
Papa John’s International, the third-largest pizza delivery chain in the world, is another stock that Oppenheimer believes could see significant growth in the coming year. The company has stable revenues, with $511 million in the third quarter of 2022, and remains profitable, although earnings are under pressure. Oppenheimer analyst Brian Bittner sees potential for the company to improve its earnings in 2023 and beyond, with a target to add 1,400-1,800 net new units between 2022-2025, driven by international growth. Bittner has given the stock an Outperform rating and 12 month target of $105 per share, forecasting a possible capital gain appreciation of 28% by year end.
Oppenheimer’s Stock Accuracy Ranking:
Oppenheimer Asset Management, a financial services firm, is known for its stock market predictions and analysis. According to Stock Target Advisor, Oppenheimer has a median rating accuracy of +10.79%, ranking it #39 out of 444 in their database. This performance has earned the firm a grade of B+ from Stock Target Advisor. In addition to its accuracy in rating stocks, Oppenheimer has a median target accuracy of -13.84% of its stock targets. This means that the actual performance of the stocks that Oppenheimer has rated has been, on average, 13.84% higher or lower than the target set by Oppenheimer. Despite this, the median 12-month return on following Oppenheimer’s buy/sell/hold advice has been positive at +7.6%.
Stock Target Advisor’s database contains a total of 2,624 stock ratings and 2,540 price targets from Oppenheimer for 4 exchanges and 101 sectors. This suggests that Oppenheimer has a wide range of coverage and experience in analyzing and predicting the performance of stocks across various industries and markets. While no one can predict the stock market with complete accuracy, Oppenheimer’s track record and expertise make it a trusted source for investors looking for guidance on potential stock picks. It’s important to note, however, that investment decisions should always be based on thorough research and consultation with a financial advisor.
