‘Stick to the Bullish Trend': Truist Sees Breakout Ahead for S&P 500 — 2 Stocks That Could Ride the Momentum
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
On a 12-month basis, Keith Lerner, chief market strategist at Truist, sees this stretch as a period of quiet consolidation — one that could pave the way for further upside.
'If you look at the big picture for the overall market – the S&P – we've been flat for seven months, and the technology sector has been flat for almost a year. As we test these technical levels, I think we'll eventually break above them,' Lerner opined. 'That said, there's likely to be some pain trade… but I think in general, the underlying trend is still positive and we want to stick with that underlying trend.'
Taking that outlook to heart, Truist's stock analysts have pinpointed two stocks they believe are primed to benefit from renewed market strength. We've used the TipRanks database to find out what the rest of the Street has to say about both of their recent picks.
TAT Technologies (TATT)
The first company we'll look at is TAT Technologies, an aerospace tech firm that provides a set of specialized services for the commercial and military aviation industries. These services include thermal solutions, including environmental controls as well as engine and fluid coolant systems; APU support, including service and maintenance of aircraft APUs (auxiliary power units); and landing gear services, to support this key system. At its core, TAT, a global firm, gives its customers a wide-ranging set of technical skills vital to keep aircraft fleets in efficient operating order.
TAT was founded in 1969, and brings its decades of experience to bear on aviation problem solving. The company takes a proactive approach, delivering cutting-edge solutions designed to promote customer confidence along with operational efficiency. Aviation is big business, and TAT has leveraged its supporting role to build up a business that generated $152.1 million in revenues last year.
In its most recent earnings report, covering 1Q25, TAT showed solid year-over-year growth in both revenue and earnings. The company had a top line of $42.1 million, up almost 24% from 1Q24, and the bottom line of 34 cents per share was up from 19 cents in the prior-year period. We should note that the company's revenue total just missed the forecast, coming in $450,000 below the estimates. On a more positive note, EPS trumped Street expectations by $0.04.
For Truist's Michael Ciarmoli, an analyst ranked amongst the top 1% of Wall Street stock pros, the key points for investors here are TAT's solid potential for expansion and growth, and its favorable risk/reward profile. He writes, 'We view TATT as an under the radar small cap comm'l aero aftermarket component repair player poised to drive above market/peer avg growth through share gains and an improved go-to-market strategy. In the coming years as revenues grow and the company scales its operations we believe gross and EBITDA margin expansion will be a key driver of the stock. In the near-term mgmt's execution on its recent APU repair wins and corresponding share gains will be a major focus point. With the stock trading at a 20% discount to its closest peers on an EV/EBITDA basis we believe the risk/reward profile is favorably skewed.'
The 5-star analyst goes on to put a Buy rating on this stock, complemented by a $35 price target that suggests a potential one-year upside of 32%. (To watch Ciarmoli's track record, click here)
There are only two recent analyst reviews on file for TATT shares, but both are positive – giving the stock its Moderate Buy consensus rating. The shares are priced at $26.44 and their $35.50 average price target implies that the stock will gain 34% in the coming year. (See TATT stock forecast)
Peloton Interactive (PTON)
Next on our list is Peloton, the well-known home workout company that brought interactive social media to the world of home-based fitness. Peloton has updated an old stand-by – the stationary bicycle – with modern technology, including digital video connections. This forms the base for a connected, online exercise community, allowing Peloton's customers to find the advantages of group exercise classes in their own homes. Peloton leveraged its connectivity to great advantage several years ago, during the COVID pandemic, and has continued to use it as an important selling point that differentiates it from its competition.
Peloton has built a community of 6 million members, making it one of the world's largest interactive fitness platforms, however its recent financial results weren't a particularly strong affair. In the last reported quarter, for fiscal 3Q25, the company saw a 13% year-over-year decline in sales. The revenue hit was strongest in the connected fitness segment, at 27%, but also included a 4% decline in subscription revenue. In total, Peloton's revenue came to $624 million. As noted, that was down 13% YoY – although the figure did beat the forecast by $2.67 million. The company's bottom line came to a net loss; the EPS of ($0.12) missed expectations – by 6 cents per share.
The company has recognized the weaknesses and is actively working to address them. In January, Peloton launched its Personalized Plans programs and had enrolled 500,000 members by the end of its fiscal Q3 on March 31. Looking ahead to the end of fiscal year 2025, on June 30, Peloton expects to realize an adjusted EBITDA in the range of $330 million to $350 million and to bring in approximately $250 million in free cash flow.
This stock has caught the attention of Truist analyst Youssef Squali, who believes that the headwinds have been priced in and that management will likely succeed in its plans to restart revenue and earnings growth. Squali says of Peloton, 'With the BS cleaned up and Opex materially cut to ensure sustainable FCF profitability, the new leadership is now squarely focused on improving the customer experience to drive revenue growth. Mgmt will guide to FY26 in early August, which is likely to be flattish, implying positive Y/Y revenue growth in 2H26, the first time since 2021. For F4Q25 (ending 6/30), our tracking of the Truist Card Data shows that revenue is tracking virtually in line with consensus (thru 6/9). With subscriptions accounting for ~2/3s of revenue, improving profitability and a valuation at 1.6x & 11.4x sales and AEBITDA, we believe that PTON is virtually de-risked with compelling upside.'
Quantifying this stance, Squali rates PTON as a Buy, and his $11 price target points toward a hefty gain of 77% on the one-year horizon. (To watch Squali's track record, click here)
Overall, Peloton holds a Moderate Buy consensus rating from Wall Street's analysts, based on 13 recent reviews that break down to 5 Buys and 8 Holds. The stock is currently trading for $6.22 and its $7.86 average price target suggests that the shares will gain 26% in the next 12 months. (See PTON stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Disclaimer & DisclosureReport an Issue
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Act Fast to Get the Incredible Beats Fit Pro Earbuds for Just $110
If you want some of the best workout earbuds that also happen to be some of the best noise-canceling earbuds and best earbuds overall, then you probably expect to pay a huge amount of money. But that's not the case. Right now on Woot, you can get your hands on the incredible Beats Fit Pro while they're down to just $110, which is a $90 discount on the normal price. That's a genuinely great sale -- and the lowest price we've ever seen. Beats Fit Pro: $110 (Original price: $200) See at Woot These sleek true wireless earbuds offer a stemless design with flexible wing tips that keep them securely in place, even during your most rigorous workouts. Plus, they boast an IPX4 weather-resistance rating, so they're protected against sweat and splashing. Hey, did you know? CNET Deals texts are free, easy and save you money. Internally, they're equipped with Apple's H1 chip, which provides excellent noise-canceling capabilities and spatial audio support. They also have a transparency mode for when you need to be more aware of your surroundings, and get up to 24 hours of playback time per charge. This is definitely one of the best earbuds deals you're going to see for a while. Earning a spot on multiple lists of the best earbuds of 2025, the Beats Fit Pro are one of the absolute best pairs on the market right now. Which means that -- even at full price -- they're still a pretty good value. That makes them an incredible bargain at their record-low price.
Yahoo
12 minutes ago
- Yahoo
Oil prices up; strong demand outweighs surprisingly big OPEC+ output hike
By Arathy Somasekhar HOUSTON (Reuters) -Oil prices rose nearly 2% on Monday as signs of strong demand more than offset the impact of a higher-than-expected OPEC+ output hike for August and fresh concerns about the potential impact of U.S. tariffs. Brent crude futures settled up $1.28, or 1.9%, at $69.58. U.S. West Texas Intermediate crude settled up 93 cents or 1.4%, at $67.93. Early in the session, Brent had fallen as low as $67.22 and WTI's session low was $65.40. "The supply picture definitely looks to be elevating, however, the stronger demand is remaining above expectations as well," said Dennis Kissler, senior vice president of trading at BOK Financial. Travel industry statistics released last week showed that a record number of Americans had been set to travel for the Fourth of July holiday by road and air. On Saturday, the Organization of the Petroleum Exporting Countries and allies in OPEC+ agreed to raise production by 548,000 barrels per day in August, exceeding the 411,000-bpd hikes they made for the prior three months. The OPEC+ decision will bring nearly 80% of the 2.2 million-bpd voluntary cuts from eight OPEC producers back into the market, RBC Capital analysts, led by Helima Croft, said in a note. However, the actual output increase has been smaller than planned so far and most of the supply has been from Saudi Arabia, analysts said. In a show of confidence about oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia. Goldman analysts expect OPEC+ to announce a final 550,000-bpd increase for September at the next meeting on August 3. Oil had also come under pressure as U.S. officials flagged a delay regarding when tariffs would begin, but failed to provide details on changes to the rates that will be imposed. Investors are worried that higher tariffs could slow economic activity and oil demand. The U.S. will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, adding his inbox was full of last-ditch offers from countries to clinch a tariff deal before a July 9 deadline. "Although U.S. trade policy is still unfolding, the U.S. is extending deadlines and backing away from punitive tariffs, helping to lift some of the demand gloom in place since April," said Jeffrey McGee, managing director of advisory firm Makai Marine Advisors. Meanwhile, Yemen's Iran-aligned Houthis said on Monday a cargo ship they struck with gunfire, rockets and explosive-laden remote-controlled boats had sunk in the Red Sea, after their first known attack on the high seas this year. Israeli Prime Minister Benjamin Netanyahu was due to meet with Trump at the White House on Monday, while Israeli officials hold indirect talks with Hamas aimed at reaching a U.S.-brokered Gaza ceasefire and hostage-release deal. Iranian President Masoud Pezeshkian said he believes Iran can resolve its differences with the U.S. through dialogue, but trust would be an issue after U.S. and Israeli attacks on his country, according to an interview released on Monday. (Additional reporting by Florence Tan and Ahmad Ghaddar; Editing by Marguerita Choy, Nick Zieminski, Cynthia Osterman and David Gregorio) Sign in to access your portfolio
Yahoo
21 minutes ago
- Yahoo
Morning Bid: Tariff deja vu takes hold
A look at the day ahead in European and global markets from Rocky Swift U.S. President Donald Trump's assertion that his latest tariff deadline was "firm, but not 100% firm" was all Asian share markets needed to stage a weak rally. A July 9 date to secure trade deals with the United States was reset to August 1, and even as 14 nations received letters about tariff hikes on their goods, Trump's words left plenty of time and wiggle room for negotiation. Since Trump's unveiling of his sweeping "Liberation Day" tariffs on April 2, each additional policy change has obeyed the economic maxim of "diminishing marginal returns" in terms of market reaction. Still, 25% duties on goods from Japan and South Korea, America's second- and third-largest trade partners in Asia, are still a hefty burden. More letters are expected to be doled out to other countries this week, keeping tariffs on the front pages. For the time being, a sense of deja vu is keeping market moves muted. The European Union is not among those expected to get a letter, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. Since April, the Trump administration has put together just two, thinly sketched out trade agreements, with Britain and Vietnam, and a fragile trade truce with China. The U.S. dollar has been one of the biggest casualties from the tariff turmoil, but it bounced back strongly on Monday and held gains in Asia. Strength in the greenback against Japan's yen and the South Korean won added a tailwind to their major share indexes on Tuesday. Equity futures are indicating a down day broadly for Europe, whereas the U.S. market is poised for a flat open. But on the bright side, Goldman Sachs raised its return forecasts for the S&P 500, citing expectations for U.S. interest rate cuts and continued fundamental strength of major large-cap stocks. Key developments that could influence markets on Tuesday: - Germany trade data for May - Reopening of 5-year government debt auction in Germany – Reopening of 24-year government debt auction in the United Kingdom Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data