These are JPMorgan's top stock picks for clients heading into May

Published Mon, May 6 20249:44 AM EDTUpdated Mon, May 6 20241:13 PM EDT

JPMorgan spotlighted a fresh set of stocks, reflecting its analysts' top picks as May begins, including Caterpillar , Bank of America and TJX Companies . The firm's focus list includes its top equity ideas targeted around growth, income, value and short strategies. Nicholas Rosato, head of JPMorgan's North American equity research, said all the stocks on the list have an overweight rating. Here are some of the top picks: United Airlines shares are up about 25% in 2024, fueled largely by a strong second-quarter earnings forecast . In mid-April, the airline said it expects to earn between $3.75 and $4.25 per share in the second quarter. The forecast was ahead of analysts' estimates for this key quarter, as airlines tend to make most of their profits in the second and third quarters during peak travel season. In the year ahead, JPMorgan expects United Airlines could jump a whopping 90% from Thursday's close based on its price target of $98. That is despite ongoing delivery delays from Boeing , which led United to cut its aircraft delivery expectations for the year. Morgan Stanley analyst Ravi Shanker also is upbeat about the stock. He reiterated his overweight rating in an April 18 note and called the stock a "relative safe haven in a world of uncertain consumer trends." Amazon made the cut alongside other major tech and media plays, with JPMorgan expecting shares to jump about 26% over the next year. Investors were enthused by the e-commerce giant's Tuesday earnings report , which reflected 24% growth in advertising revenue and signaled a rebound in the digital ad market. The company also beat on both the top and bottom lines. Shares are up more than 21% year to date. Beauty and retail stocks e.l.f. Beauty , TJX Companies and Ulta Beauty were also included in the list with the idea that the stocks could post major returns over the next year. TJX, which owns T.J. Maxx and Marshalls, was upgraded to buy from neutral by UBS on Thursday on the belief it will take more share from department stores than previously thought. "TJX's value proposition is durable and likely leads to sustained market share gains," UBS analyst Jay Sole wrote in a Wednesday note. "Consumers associate 'Good value for money' with TJX's banners more than other retailers' banners." No longer included in this month's focus list are CMS Energy and Prologis , both of which are still rated overweight by JPMorgan. Rosato said he continues to see a strong risk/reward profile and looks "favorably" upon CMS' top-tier growth outlook of between 7% and 8%, but the stock's price has narrowed the gap compared with its premium peers. With Prologis, the analyst said, macroeconomic uncertainty has dampened sentiment on the stock's near-term demand.