These are JPMorgan's top stocks for February

Published Tue, Feb 6 20246:46 AM EST

With February's trading month kicking into high gear, JPMorgan has some investment ideas to maximize returns heading into the month. Stocks are coming off a winning month, with the three major indexes finishing January up by more than 1%. 2024's first month brought the start of a new corporate earnings season and a Federal Reserve policy meeting where interest rates were left untouched. Investors are now watching to see if the market can continue grinding higher. Against this backdrop, JPMorgan unveiled the firm's top stock picks from here. Those names make up the bank's Analyst Focus list, which is updated monthly. CNBC Pro compiled 10 of the stocks on his list, including four new names: Cars.com , Insulet , Intuitive Surgical and Prologis . Those additions replaced CarGurus , Cytokinetics , Dexcom , Stryker and Vertex Pharmaceuticals . Cars.com has a favorable cycle and the potential to see upside reversion risk on a relative basis, JPMorgan said. The automotive retailer's stock is also trading at a relative discount, the bank added. Shares have slipped more than 3% so far this year. That marks a retreat from 2023, when the stock finished more than 37% up. More than seven out of every 10 analysts rate the stock a buy, according to FactSet. The average price target implies the stock can rally more than 27% in the next 12 months. Insulet, another new addition, is dominating new patient share in the insulin pump market, JPMorgan noted. The bank added that the company should see "significant" upside to both lines in 2024 and beyond. More than four out of every five analysts rate the stock a buy, with an average price target reflecting an upside of nearly 21%. That would mark a turn for the stock, as it has fallen more than 10% this year, extending losses after closing 2023 more than 26% in the red. PODD 1Y mountain Insulet, 1-year Intuitive Surgical's da Vinci 5 robot launch can create a multiyear new product cycle, according to the note. The bank leader noted that can provide positive momentum on forecasts starting in 2025. Shares of the health care stock have recently rallied. The stock is up more than 13% in 2024, extending its more than 27% surge from the prior year. The average analyst anticipates more steam ahead, with a price target reflecting another 7.4% in upside, per FactSet. But just three out of every five analysts polled by FactSet rate the stock a buy. Prologis, meanwhile, has "outsized" growth potential both internally and externally within the real estate trust sector. More than four out of every five analysts rate the stock a buy, with an average price target showing upside of more than 13%. Shares have slipped more than 4% thus far in the new year, continuing to underperform the broader market after adding just over 18% last year while the S & P 500 rose more than 24%. JPMorgan upgraded the stock to overweight from neutral in December, citing those growth prospects. But Mizuho downgraded the stock to neutral from buy earlier that month.