From The Street:
The year 2016 is “likely looking to print flat earnings growth — negative revenue growth roughly offset by some margin expansion and significant share repurchases,” J.P. Morgan analysts wrote in a comprehensive note issued Monday to clients. “While buyback activity should continue to synthetically boost earnings growth in this lackluster economic environment, we think margin expansion is near full exhaustion and in 2016 will possibly turn negative for the first time in this recovery. This suggests that we need at least some top-line growth in order to avoid a possible earnings recession. In that vein, we believe the biggest risk equities face is a continuation in the strengthening of the US dollar and the Fed getting ahead of the curve (‘policy error’).”
J.P. Morgan equity analysts identified the most compelling investment ideas for 2016 in their coverage group across growth, value, income-oriented, short and market-neutral strategies. Below is the list of stocks that made the analysts’ top long ideas.