Rising geopolitical tensions and a close presidential election could increase market volatility in the coming weeks, but blue-chip growth stocks offer investors a good hedge against future uncertainty, according to Trivariate Research. It is said that this could be a useful method. October is historically a volatile month for stocks, and this week alone saw the market seesaw. In Monday’s trading, the Dow Jones Industrial Average closed above 43,000 for the first time, and the S&P 500 also ended at a new record, but in Tuesday’s trading, all three major stock averages retreated and ended in the red. Then on Wednesday, the index rose again, with the Dow Jones Industrial Average hitting yet another all-time high. This comes as earnings season is underway, with 79% of the roughly 50 S&P stocks already reporting beating analyst consensus estimates. “The market appears to have come full circle,” Adam Parker, founder and CEO of Trivariate Research, wrote in a recent research note to clients. “Buying and holding growth stocks is now much easier than ever before, and requires less arrogance than before when predicting the unknown. Today, being a growth investor is no longer a value investor. With this in mind, Parker, former chief U.S. equity strategist at Morgan Stanley, believes that high-quality stocks are generally less volatile than other stocks in the market and currently have beta values of 0.8 to 1.2. We have announced a list of large growth stocks. October 11th. Below are some of the names in the trivariate list. Among the hottest health care stocks, Eli Lilly has had the biggest rise, soaring more than 57% this year. The stock price has also risen more than 3% since the beginning of the month. Earlier this month, the maker of anti-obesity drug Zepbound pledged to spend $4.5 billion to build a center aimed at finding new manufacturing methods for more efficient production. Eli Lilly’s announcement this week that it is investing $364 million to investigate whether obesity drugs can combat Britain’s Wall Street unemployment problem is broadly bullish. Of the 28 analysts covering Lilly, 23 give it a strong buy or buy rating. The remaining five are neutral. Analysts’ consensus price target of $1,010 suggests an upside of more than 10% from Wednesday’s closing price. Among consumer discretionary companies, Flutter Entertainment appeared on Trivariate’s screen. FanDuel owners have had a strong year as well, with their stock up more than 27% in 2024. Flutter soared late last month after the online sports betting company approved a $5 billion stock buyback and projects total revenue in 2027 to be around $21 billion. FLUT YTD Mountain FLUT, year-to-date, Adobe’s stock price hasn’t performed as well, with the stock down nearly 16% this year and more than 11% in the last month alone. Shares plunged more than 8% a day after the software company lowered its earnings outlook for the current quarter and reported lower-than-expected earnings. The Street remains broadly bullish, with 31 of the 40 analysts covering Adobe rating it a Buy, and the average price target of $624 suggests an upside of 24% from Wednesday’s closing price. . Other growth companies Parker cited include wholesale retailer Costco and hotel giant Hilton. Both of these stocks have outperformed the broader market since the beginning of the year, up more than 34% and 30%, respectively.
