Citigroup, Bank of America and Barclays have named a range of stocks that they think could perform well in the third quarter, as the specter of a recession continues to loom over investors’ minds. The S&P 500 is up about 4.6% so far this quarter, after the first half of the year saw the index sink into a bear market. But investors are still walking on eggshells ahead of the US Federal Reserve meeting next week, when it is expected to raise interest rates by three-quarters of a percentage point. Despite “significant” short-term risks, Citi remains positive on the stock market for now. “Our global strategists remain bullish over the medium-term, forecasting a 17% gain for MSCI AC World through mid-2023,” Citi strategists, led by Robert Buckland, said in a statement. July 14. The index is up 3% so far. quarter. Citi’s top picks. Tennessee-based auto parts retailer AutoZone has been shortlisted by Citi. According to Citi. The bank expects the company to continue to deliver “sustainable” double-digit earnings per share (EPS) growth, driven by stable margins and strong growth in shareholder returns. The bank believes the company’s “industry-leading” sales and increased market share in the “faster-growing” commercial category will drive better revenue growth than its peers. Synchrony Financial is another new addition to Citi’s list. The bank prefers Synchrony’s positioning over the next one to three years, high capital redundancy and potentially “solid” top-to-bottom profit growth. Investors are also overestimating the severity of a potential recession and there is a “significant” upside to Synchrony’s share price, Buckland said. Citi has a $50 price target for the stock, representing a potential 51.5% upside from the stock’s closing price of around $33 on Wednesday. The bank also likes scientific instrument manufacturer Thermo Fisher Scientific, which is considered one of the leaders in its field and is well-equipped to weather a downturn due to its diversified market. . Read more BofA believes we are in a recession – and says these stocks have what it takes to beat it Morgan Stanley says these global stocks are set to boost earnings – and increased by more than 45%. Citi has a price target of $715. shares – the highest among company analysts – according to the bank. That implies a potential gain of 32.7%, based on the stock’s closing price of around $539 on Wednesday. In the Asian equity space, Citi prefers Taiwanese electronics contract manufacturer Hon Hai Precision, better known as Foxconn, the world’s largest iPhone maker. Other options include Japanese pharmaceutical company Daiichi Sankyo. Bank of America Global Options also named a number of “non-consensus” global stock options. “Our analysts expect 24% EPS growth this year for European companies in their coverage, especially above consensus, at 15%,” the strategist said. Europe’s Bank of America, led by Milla Savova, wrote in a note on July 13. The bank. The price target for Norwegian energy company Equinor is 24% above consensus, while its EPS estimates are 43% and 85% above consensus, respectively, for 2022 and 2023. , price target and EPS estimate for French bank Credit Agricole are 17% and 27% above consensus, respectively. Other stocks shortlisted by the bank are luxury goods company Hermès and aircraft maker Airbus. Barclays also rallied on a number of European shares. In a July 14 note, Barclays analysts featured five overweight stocks, with an average upside potential of 39% based on the bank’s price target. The bank’s options include Europe’s largest independent oil and gas company Aker BP, German energy company RWE and French food company Danone.