JPMorgan says the market bottom is near as corporate buybacks skyrocket — here are 3 high-upside stocks to play that bullish sentiment
Stocks have fallen quite a bit in 2022. If you are wondering where the market bottom is, JPMorgan has some good news.
The bank sees companies continuing to buy back their shares, which could help stocks establish a bottom.
“In the latest sell-off, JPM estimates 3-4x higher buyback executions than trend, which implies the corporate put remains active,” JPMorgan’s Marko Kolanovic writes.
The analyst points out that S&P 500 companies have announced a whopping $429 billion in share repurchase activity in 2022. And since corporations continue to gush cash flow, more buybacks could be on the way.
If you share this view and want to buy the dip in a market bottom, here are three stocks that JPMorgan finds particularly attractive.
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ChargePoint Holdings (CHPT)
Electric vehicles are selling like hotcakes. And ChargePoint Holdings is solidly positioned for the EV boom.
The company has one of the largest EV charging networks in the world. It has around 5,000 commercial and fleet customers, including 76% of Fortune 50 companies. Since its inception, ChargePoint has delivered more than 105 million charging sessions.
Of course, EV stocks haven’t been market darlings lately and this EV infrastructure play was caught in the sell-off as well. ChargePoint shares have fallen 48% over the last 12 months.
That could give bargain hunters something to think about.
In the fiscal year ended Jan. 31, ChargePoint generated $242.3 million of revenue, marking a 65% increase year over year. This was driven by a 90% increase in networked charging revenue and a 32% increase in subscription revenue.
JPMorgan analyst Bill Peterson has an ‘overweight’ rating on ChargePoint and a price target of $18 – roughly 34% above where the stock sits today.
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