We’re entering the dog days of summer, and the stock market continues to be a rollercoaster ride for investors. After a strong rally in the year’s first half, the waters got choppy in July as investors rotated capital out of technology stocks in favor of small-caps and value stocks. But then, just when it looked like tech stocks were being discarded, a reversal happened.
Strong financial results from mega-cap tech companies and chipmakers such as Advanced Micro Devices (NASDAQ:AMD) led to another seesaw as tech stocks once again soared. Supportive comments from U.S. Federal Reserve Chair Jerome Powell concerning the likelihood of a September interest rate cut have also added fuel to a renewed rally in tech stocks.
The summer has been anything but boring, and the excitement could continue leading into Labor Day. Here are three up-and-coming stocks that could make your summer unforgettable.
Mastercard (MA)
Credit card giant Mastercard (NYSE:MA) looks to be on the comeback trail after its second-quarter financial results beat Wall Street forecasts across the board. The payments company announced an EPS of $3.59, beating consensus forecasts of $3.51. Revenue of $6.96 billion topped analyst estimates of $6.85 billion. Mastercard also reported that the number and value of transactions processed on its platform rose 11% from a year ago.
The strong print was attributed to robust consumer spending and cross-border payment volume growth of 17%. Management said that consumer spending continues to hold up despite signs that the U.S. economy is slowing. Spending on travel and dining out, as well as on experiences such as concerts, remains particularly strong, said company executives. Looking ahead, Mastercard forecasts revenue growth for all of this year in the low double-digits.
Mastercard stock is up 17% over the last 12 months and climbing higher.
GE Aerospace (GE)
Breaking itself into three separate companies has done wonders for General Electric, or GE Aerospace (NYSE:GE), as the core business is now known. The maker of aircraft engines has been a top-performing stock this year, with its share price having risen 68% since January. Following the break-up, GE Aerospace has continued to post decent financial results, helping to keep its share price buoyant.
Most recently, GE Aerospace reported financial results that showed improved profit margins and raised its full-year guidance. For Q2, GE Aerospace announced EPS of $1.20 compared to the 99 cents forecast on Wall Street. Revenue came in at $8.2 billion, which was a little below the $8.4 billion consensus expectation of analysts. However, the company reported that its operating profit margin rose to 23.1%, up 6% from a year earlier. Wall Street was looking for a profit margin of 20% for this year’s Q2.
In terms of guidance, GE Aerospace said it now expects 2024 earnings per share of $3.95 to $4.20. That’s up from its previous guidance of $3.80 to $4.05. The midpoint of the new guidance is higher than the $4.08 a share estimated on Wall Street. In the last 12 months, GE stock has rallied 87%.
JPMorgan Chase (JPM)
It’s gone a little underreported, but there’s been a bull run in bank stocks since last fall. Most of the major banks have seen their share price rise more than 30% in the last 12 months. And among the leaders of the pack is JPMorgan Chase (NYSE:JPM), whose share price is up 35% over the last year. Expectations for lower interest rates, a booming stock market and the return of deal-making on Wall Street have led to the rally in bank stocks. So, too, have record quarterly results.
JPMorgan has delivered on the earnings front. The largest bank in the world with nearly $3.5 trillion of assets under management, JPMorgan Chase posted strong Q2 financial results driven by a 50% increase in fees earned from investment banking activities. The lender posted EPS of $4.40, ahead of the $4.19 expected on Wall Street. Revenue amounted to $50.99 billion versus $49.87 billion forecasted by analysts. JPMorgan is also benefitting from strong stock trading activity.
JPM stock has gained 26% this year. Other reasons to like the stock are a favorable valuation, trading at just 12 times forward earnings estimates. There’s also a quarterly dividend payment of $1.15 per share and a stock yield of 2.16%. JPMorgan has raised its dividend payout to shareholders twice in the last year.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
