Wolfe Research analyst Steven Chubak takes a two-pronged approach to stock picking this year — picking strong organic growers that trade at reasonable valuations and self-help stories with less macro sensitivity.
In the first category, which he describes in offensive, Chubak likes LPL Financial Holdings (LPLA -0.7%) and Raymond James Financial (RJF -0.3%).
In the second defensive category, his top pick is Bank of New York Mellon (BK +0.6%) followed by Goldman Sachs Group (GS).
Upgrades BK, State Street (STT +1.1%), TD Ameritrade (AMTD +0.6%) to Outperform and Lazard (LAZ +0.9%) to Peer Perform.
Downgrades JPMorgan Chase (JPM -0.7%) and Evercore (EVR) to Peer Perform.
Chubak's recommendation on LPLA agrees with Quant rating of Bullish and Sell-Side average rating of Bullish (3 Very Bullish, 2 Bullish, 7 Neutral).
Meanwhile, BK's Quant rating is Very Bullish as its Sell-Side average rating is Neutral (1 Very Bullish, 1 Bullish, 18 Neutral, 1 Bearish, 1 Very Bearish.)