TipRanks
8 min read
Once again, earning season has left market watchers feeling upbeat. Across the S&P 500 index, revenues were up 16% year-over-year, and earnings growth came close to 52%. Profit margins are at or near record highs, and better yet, the gains are broad. Some 86% of reporting companies have beaten earnings expectations, a clear sign of a healthy bull market.
While AI, semiconductors, and cloud computing are still powering the bullish trend, the breadth of the market gains means that investors can find opportunities in a wide range of sectors. Covering the current situation from J.P. Morgan, global investment strategist Kriti Gupta wrote at the end of August, “For now, the fundamental story remains intact. Earnings continue to exceed expectations, margins remain near record highs and AI investment shows few signs of slowing. Should bond yields become less of a headwind and more conviction emerges in the long-term productivity benefits of AI, the stock market can catch up to reflect the strong earnings growth expected going forward.”
The stock analysts at JPM are following up on this by recommending stocks from sectors that might not always get a second look. ‘From fashion to concrete’ – these are not the usual investment opportunities these days, but JPM has picked out two stocks that they think investors should buy. We’ve opened up the TipRanks database to get a closer look at JPM’s picks; here they are, along with the analyst commentaries.
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Reformation, Inc. (REF)
Up first on our list is the fashion stock, Reformation. This company bills itself as the world’s largest brand for sustainable womenswear, and takes pride in making timeless and beautiful garments and styles while keeping a carbon-neutral footprint. Reformation uses eco-friendly materials in its products and even repurposes vintage clothing. Among the products offered are dresses, skirts, pants, tops, shoes, denim, swimwear, and even a dedicated collection of bridal and wedding styles.
The California-based company operates globally through several channels. These include its website, along with a range of direct-to-consumer channels and a network of retail stores in North America, the UK, and France. Overall, the company has more than 70 brick-and-mortar locations.
