Some stocks are "bottoming out" or are "extremely cheap," JPMorgan said, as it listed dozens of top picks in a research note to investors.
The investment bank's analysts said there is potential for consolidation in the market in the coming months, which could represent a good time to buy certain stocks. Consolidation is when stock prices stop an upward or downward trend and trade within a limited range.
Cyclical stocks — those whose prices tend to fluctuate with the economy — have seen a "dramatic outperformance," the bank said in the note on Monday, referring to the recent market rally, while defensive stocks — those whose prices don't tend to fluctuate with the economy — are now "the good place to be." "Almost all Defensives are near the bottom," the analysts added.
Its stock picks, all European-based firms, include those in the consumer staples, health care and telco sectors. Here are a dozen: