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Both the S&P 400 (SP400) and the S&P 600 (SP600) are maintaining above prior breakout levels and their 200-day average.
Oppenheimer research analysts see this as “an untapped firepower for the next leg of the cycle,” according to a research note.
In addition, mid-cap growth (MDYG) is the analysts’ top rotation idea.
“We believe it strikes an attractive balance between secular growth leadership and intermediate-term rotation potential in lower-capitalized stocks,” they wrote.
Mid-cap growth has been a key driver of stronger mid-cap trading since the beginning of 2024, analysts expect this leadership to continue “if a broad-based market breakaway finally materializes over the coming months.”
Oppenheimer’s fundamental buy ideas (all rated outperform) exhibit a bullish trend. Those include:
- Arcosa Inc. (ACA)
- Blueprint Medicines Corp. (BPMC)
- Freshpet Inc. (FRPT)
- Guidewire Software Inc. (GWRE)
- Life Time Group Holdings Inc. (LTH)
- Modine Manufacturing Co. (MOD)
- RxSight Inc. (RXST)
- Sweetgreen Inc. (SG)
- Transcat Inc. (TRNS)
- Veeco Instruments Inc. (VECO)
- Viking Therapeutics Inc. (VKTX)
- Zeta Global Holding Corp. (ZETA)
