Ticker Take with Jon Erlichman
A weekly newsletter on investing.
A recap of the week
A week that began with geopolitical jitters ended with a general optimism among investors. Traders were encouraged by the ceasefire between Israel and Iran, which sparked a selloff in oil (seen as a positive for inflation). Additionally, there’s a belief that the U.S. is moving closer to trade deals with its top partners. Easing tariff threats are also lifting the mood in Canada, where economists surveyed by Bloomberg are no longer expecting a technical recession this year.
Both the S&P 500 and TSX are trading in record territory.
Which Dow stocks are the most loved?
We explored that theme in our latest Ticker Take video on YouTube, by identifying the top 10 stocks in the Dow Jones Industrial Average that Wall Street likes. Our analysis was based on two factors — first, we looked at the buy recommendations for each stock. And second, we reviewed the average target price for each stock to assess which name analysts believe has the most upside. By blending the two, we came up with our list, which we took to the streets! We asked folks which stocks they would pick and compared their selections to those of the pros. And, as a bonus, we gave our participants a chance to “phone a market friend,” for help in making their final decision. Special thanks to John Zechner and Brianne Gardner for participating! We had a lot of fun with this video, so we hope you enjoy!
Will Nvidia be the first $4 trillion company?
If you watched the video above, you’ll know that Nvidia came up a number of times. It may not make a consumer product, but it’s a household name in a society that increasingly follows the stock market. Two years ago, it became the first chipmaker to achieve $1 trillion market cap status. And now, it’s on the doorstep of $4 trillion. The DeepSeek drama and China trade tensions have been reminders this year that Nvidia can face setbacks, but big tech’s appetite for AI and the company’s pricing power have analysts largely remaining bullish on the business. Worth noting, the race to $4 trillion could be between Nvidia and Microsoft, which is close behind.
Analyst cools on JP Morgan
JPMorgan is another stock that came up in our Ticker Take video on YouTube this week. And like Nvidia, it’s had an impressive run, rising about 40% since its April lows. With the stock in record territory, the analyst team at Baird is advising investors to chill out. While they still believe it’s a best-in-class bank, they think the stock is too expensive right now. Baird also cut its recommendation on Bank of America, saying it has reached fair value.
Is Nike back?
And sticking with Dow stocks, Nike ended the week by reporting better than expected results. CEO Elliott Hill acknowledged performance is still not where he’d like it to be, but he’s optimistic the turnaround will continue. And, on average, analysts seem to agree. Truist Securities, Morgan Stanley, and Citi all raised their target prices for the stock, lifting the 12-month average to around $74.
Industrial stocks with upside?
I spoke this week with analyst Maxim Sytchev of National Bank Financial, who highlighted three industrial stocks he thinks have reasonable upside. ATS Corp, which designs and builds factory automation systems (target price: C$54), Ag Growth International, which provides farmers with equipment and engineering solutions (target price: $51), and Stella-Jones Inc (target price: $92).
Go with aerospace and defense sector?
Chip Rewey of Rewey Asset Management told me this week he continues to like aerospace and defense stocks. His advice is to target companies up and down the market cap spectrum, with defense spending set to rise not only in the U.S., but also across NATO countries. He’s also generally a fan of U.S. bank stocks and the regional banks in particular.
Disclaimer: this content is for informational purposes only and does not constitute legal, financial, or professional advice. Always consult a qualified professional regarding your individual situation.