Oppenheimer’s top 32 ideas for August-September

Oppenheimer analysts updated their top equity ideas for the current month, adding (FRPT), (SLNO), and removing (WMT), and (EW), among others.

These stocks are “the most timely” according to Oppenheimer research analysts, and are considered to outperform over the next 12 months, based on the company’s fundamentals in today’s market conditions.

This month, analysts added Freshpet (FRPT), Soleno Therapeutics (SLNO), TransMedics Group (TMDX), BizRocket.com (OTC:BZRT), Carrier Global (CARR), and Arcosa (ACA); and removed Walmart (WMT), Edwards Lifesciences (EW), UroGen Pharma (URGN), Builders FirstSource (BLDR), Clean Harbors (CLH), and Talen Energy (TLN).

These are the 32 picks, and a comment by the analysts who picked it:

• Freshpet (FRPT) – “We look very favorably upon [its] global growth prospects and see multiple sales drivers for the company.”
• CarMax (KMX) – “We are increasingly optimistic that digitally focused investments undertaken by CarMax over the past few years have strengthened key operational and financial levers within the company’s business model…”
• Sweetgreen (SG) – “We believe fundamentals are improving with new SSS drivers, expanding restaurant margins, and new market unit economics hitting hurdles.”
• Nasdaq (NDAQ) – “Recovery of IPO and strength in equities markets can support listing and index businesses and help accelerate organic growth.”
• Crescent Capital BDC (CCAP) – The company “seeks to maximize the total return to its stockholders by generating current income and capital appreciation by investing in secured and unsecured debt, as well as related equity securities.”
• Goldman Sachs Group (GS) – “The company has a strong franchise and there are multiple revenue, cost, and capital optimization strategies that can be implemented.”
• Beazer Homes USA (BZH) – The company “is primed for growth, with closings expected to accelerate in FY25.”
• HCI Group (HCI) – “Shares will move toward fair value, which we think is significantly above the current price.”
• Viking Therapeutics (VKTX) – “We see [its] current market cap as undervalued compared to its peers…”
• Corbus Pharmaceuticals (CRBP) – “The company is well funded, with the current cash balance supporting operations through key catalysts through 2026.”
• Avadel Pharmaceuticals (AVDL) – “With a strong record of execution management is delivering, we see [Avadel] as undervalued at these levels.”
• Tyra Biosciences (TYRA) – “We believe Tyra’s lead FGFR3 inhibitor could become a potential best-in-class therapy for FGFR3-mutant urothelial carcinoma and achondroplasia.”
• MoonLake Immunotherapeutics (MLTX) – “We consider MLTX among the top likely acquisition targets in biotech today.”
• Soleno Therapeutics (SLNO) – “We believe shares remain undervalued.”
• Evolent Health (EVH) – The company “has an attractive growth proposition, driven by its ability to cross-sell new services, upsell its risk-based products to its large customers and add new evergreen contracts.”
• TransMedics (TMDX) – It manufactures the first multi-platform ex-vivo normothermic perfusion system for solid organ preservation and transport, which “represents a disruptive technology that could potentially revolutionize solid organ preservation and transport.”
• Alcon (ALC) – The company has new pipeline opportunities.
• XPO (XPO) – The company’s “valuation builds as it ultimately divests its European Transportation business, and evolves its customer service-focused strategy, capacity, and the efficiency of its North American LTL business.”
• Enovix (ENVX) – “A pioneer in the commercialization of silicon anode technology with defensible IP in product architecture and manufacturing processes which are enabling new form factors, functionality, and end-markets for its customers.”
• Carrier Global (CARR) – The company has “demonstrated ability to deliver above-average incrementals and improving FCF conversion.”
• International Flavors & Fragrances (IFF) – The company “is emerging from the industry downturn as a healthier business as it continues to execute on its strategy, productivity initiatives, and balance sheet optimization.”
• The Timken Company (TKR) – The company has a “long-term strategic transition, with the team’s aggressive investments in renewable energy and automation.”
• Regal Rexnord (RRX) – The company’s “long-term profit improvement initiatives…look increasingly enabling for broadened share gain momentum and strategic mix management initiatives.”
• Arcosa (ACA) – It has “well-established positions in attractive markets with favorable long-term demand drivers, which should provide it with compelling organic and acquisition opportunities.”
• CyberArk Software (CYBR) – It “has established itself as a leader in the privileged account management sector and has expanded into new growth areas.”
• AppLovin (APP) – The company’s “growing scale and broadening customer relationships continue to improve its core product performance, which will likely accelerate its market penetration and growth.”
• Clearwater Analytics (CWAN) – Analysts expect the company’s growth opportunity to “demonstrate sustainability over the medium-term because of the underlying value proposition of its SaaS offerings, strong brand recognition and referenceability.”
• Wix.com (WIX) – “With the continued launch of new products, the company has evolved into a small to medium-sized business Cloud/SaaS platform.”
• Broadcom (AVGO) – The company “has one of the most strategically and financially attractive business models in semiconductors.”
• C3.ai (AI) – Its Platform, which can support ChatGPT, is seeing strong demand.
• Maplebear (CART) – “We believe Instacart can further leverage its current position as a top-2 player in grocery delivery, and the company has considerably improved its order unit economics since 2019.”
• DraftKings (DKNG) – “The company [will be] a critical player in accelerating the shift in U.S. sports betting from about $150B wagered illegally/offshore to licensed domestic operators.”