[ad_1]
Wells Fargo is eyeing a handful of stocks that it says have “significant” catalysts to drive upside in the third quarter. Stocks are coming off a stunning rebound in the first half of 2025. The S & P 500 notched a gain of nearly 11% in the second quarter, with the broad market index posting a strong turnaround from its April low. At one point, the S & P 500 hovered near bear market territory. The S & P 500 notched record-high closes last week, adding to its gains with a fresh record Thursday after a better-than-expected June jobs report. Take a look at some of Wells Fargo’s top tactical trading ideas for the third quarter. Energy stock Hess made the list. Shares have advanced about 11% so far in 2025. Analyst Roger Read said Hess has “two distinct paths to value.” On one hand, Hess could close its merger with Chevron , in which case he expects Hess stock to trade at around $169 per share, which is roughly 14% higher than where it currently trades. The second path is a situation where the merger doesn’t go through, but shares reflect the value of its “unique Guyana asset.” In this case, shares could rise to $184 per share, or about 28% higher than Monday’s $143.32 close. HES YTD mountain Hess stock in 2025. Fast-casual restaurant stock Sweetgreen also made the list. Shares have plummeted 58% in 2025. The sour sentiment surrounding the stock should abate, according to analyst Anthony Trainor. As it does, he expects Sweetgreen’s multiple to grow from roughly 26 times 2026 earnings before interest, taxes, depreciation and amortization, or EBITDA, to about 35 times EBITDA, which is more in line with its peers. Trainor said the salad chair was hurt by negative same-store sales trends in the first half of the year due to tough comparisons with the year-ago period and weakness in the category as well as cash flow concerns. This, however, has “created a compelling buying opportunity for a high-quality fast-casual growth concept facing transitory headwinds,” he said. “Q2 results are going to be weak, but we ultimately see this being a de-risking event, as cash flow improves sequentially, focus shifts to the business stabilizing (easing compares, loyalty & seasonal bowls) & margin tailwinds materialize (commodities, labor, [its automated] Infinite Kitchens),” he said. SG YTD mountain Sweetgreen stock in 2025. Trainor’s $19 per share price target calls for about 44% upside from Monday’s $13.23 close.
[ad_2]
Source link
