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As the market gets off to a strong start for the new month, Piper Sandler sees the stars aligning for certain stocks. The firm compiled its “triple select list” for November, which screens for stocks that stand to gain from a convergence of positive factors aligning: A favorable macroeconomic outlook, strong company fundamentals an attractive technical backdrop. All stocks on the Piper Sandler list have an overweight rating. Piper Sandler’s high-conviction list comes as stocks head for their best week of the year . A softer-than-expected jobs report as well as hope that the Federal Reserve could be nearing the end of its monetary tightening cycle underpinned the uptick in stocks. E-commerce giant Amazon made the Piper Sandler list, underpinned by both its earnings growth and momentum heading into future results. The firm also noted that Amazon stock is headed toward its 52-week high and could break out above $146 per share. Shares have surged more than 64% this year. AMZN YTD mountain Amazon YTD “We view AMZN as a top Internet name to own given improving margin profile, stabilizing AWS [Amazon Web Services] trends, logistics moat, and consumer mind-share,” analyst Thomas Champion said. “As the company distances itself from the pandemic overbuild and the benefits of the regional fulfillment structure are realized, we see North American retail margins returning to their pre-pandemic peak.” Athleisure company Lululemon also made the cut. The clothing retailer has climbed roughly 27% in 2023. LULU YTD mountain Lululemon in 2023. Analyst Abbie Zvejnieks noted that Lululemon stock is benefiting from bullish relative strength while also closing near its 52-week high in recent days. The analyst also noted there’s “constructive price action” above the stock’s 40-week moving average along with “strong realized earnings growth.” “LULU is one of our top ideas as the leader in material innovation in the athletic apparel space with best-in-class operating margin of ~22% due to a full price selling model and primarily direct-to-consumer strategy (~45% of revenue from company owned stores and ~45% of revenue from ecommerce),” Zvejnieks said. Elsewhere, biotechnology firm Amgen also made the list. Shares have ticked up about 2% from the start of 2023. AMGN YTD mountain Amgen stock. Analyst Christopher Raymond thinks Amgen is finding support near the $250 level, which aids a relative strength outlook and presents investors with a buying opportunity. “AMGN has very high profitability compared to sector peers and offers a lower beta than most in the sector,” Raymond said.
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