JPMorgan has updated its October list of favorite stock ideas, adding American Express, Liberty Energy, and Thermo Fisher Scientific, each with an overweight rating. The picks span value, growth, and healthcare, as the bank's analysts position clients for the final quarter of the year.
The value pick: American Express
American Express, classified in JPMorgan's value strategy group, closed at $302.78 on October 2 and is down 18.16% year to date. Analyst Richard Shane backs the stock, pointing to industry-leading high returns and a disciplined return of capital — dividends plus share repurchases amounting to about 3% of shares annually. The company's ability to return cash to shareholders at that pace while maintaining strong returns is central to the investment case.
The stock's decline this year has made its valuation more appealing to value-focused investors, though the broader market's recent wobble — the Dow lost 4.3% in September — shows the environment remains choppy.
Liberty Energy rides the power demand wave
Liberty Energy, the growth pick on the list, has climbed 52% over the past year. The company's unit, Liberty Power Innovations, agreed in January to supply up to 1 gigawatt of power for Vantage Data Centers within five years. Analyst Arun Jayaram expects a structurally tight behind-the-meter power backdrop tied to data center load growth, with a power deficit expected to persist into 2030. That outlook underpins the bullish call, as data centers scramble for reliable electricity.
Thermo Fisher: AI and reshoring tailwinds
Thermo Fisher Scientific closed at $654.80 on October 2, up 13% year to date and more than 25% over the past three months. Analyst Casey Woodring sees further gains from wider adoption of artificial intelligence and US biopharma reshoring. In September, Mayo Clinic launched Precure, an early disease detection venture, with Thermo Fisher as a founding partner — a tie-up that could bolster the company's long-term positioning in diagnostics.
September's stumble, October's reputation
The third quarter closed with the Dow down 3%, while the S&P 500 and Nasdaq each advanced at least 2%. September lived up to its reputation as the weakest month for US stocks, with the Dow off 4.3%, the S&P 500 slipping 0.5%, and the Nasdaq Composite gaining 1.9%. Since 2010, September has averaged a 0.48% loss.
October has historically been the third-best month for US stocks, with SPDR S&P 500 ETF total returns averaging 2.27% since 2010, behind November (3.09%) and July (2.79%). JPMorgan's latest additions suggest the bank expects that seasonal strength to favor specific names rather than the whole market.
Investors will watch whether American Express can reverse its year-to-date slide, how quickly Liberty Energy converts its data center power pipeline into revenue, and whether Thermo Fisher's AI and reshoring narratives translate into earnings beats when the companies next report.
