JPMorgan has refreshed its October favorite stock ideas list following a mixed September performance across Wall Street equities, adding major corporate names across its value and growth focus categories. The newly added selections include credit card issuer American Express, energy infrastructure firm Liberty Energy, and life sciences supplier Thermo Fisher Scientific, all maintaining overweight ratings from bank analysts.
Key Takeaways
- JPMorgan added American Express, Liberty Energy, and Thermo Fisher Scientific to its favorite stock picks for October with overweight ratings.
- The Dow Jones Industrial Average lost 4.3% in September, while the S&P 500 slipped 0.5% and the Nasdaq Composite gained 1.9%.
- SPDR S&P 500 ETF historical performance shows October averages a 2.27% return since 2010, standing as the third-best month of the year.
- Liberty Energy's power unit contracted in January to supply up to 1 gigawatt of power to Vantage Data Centers over 5 years.
Market Breakdown and Value Additions
Wall Street ended September with divergent index moves: the Dow Jones Industrial Average dropped 4.3%, the S&P 500 fell 0.5%, and the Nasdaq Composite rose 1.9%. Across the entire third quarter, the Dow declined 3%, while both the S&P 500 and Nasdaq gained at least 2%. According to Barchart data, October historically offers a favorable environment, with the SPDR S&P 500 ETF averaging a 2.27% total return since 2010—ranking third behind November (3.09%) and July (2.79%), whereas September averaged a loss of 0.48%.
As traditional equities navigate broader economic shifts alongside US economic growth and yield pressures, JPMorgan sorted its top ideas into growth, income, value, and short strategies. American Express joins the value bucket after closing at $302.78 on October 2, down 18.16% year to date due to concerns over consumer spending and volatile credit rates. Despite the drawdown, analyst Richard Shane maintained confidence, stating that "AXP remains a core holding for investors looking for industry leading high returns and disciplined return of capital (dividend plus repurchases 3% of shares year after year)."
Growth Picks Driven by AI and Healthcare Demand
Among growth picks, Liberty Energy has rallied 52% over the past year. Its Liberty Power Innovations division agreed in January to provide up to 1 gigawatt of power for Vantage Data Centers within five years. Analyst Arun Jayaram cited a persistent power shortage tied to data center load growth into 2030, supporting multi-year demand for on-site generation.
Thermo Fisher Scientific, another growth addition, closed at $654.80 on October 2, up 13% year to date and surging over 25% across the prior three months. In September, the Mayo Clinic launched Precure, an early disease detection venture, naming Thermo Fisher as a founding partner. Analyst Casey Woodring expects additional upside driven by expanding artificial intelligence adoption and US biopharma reshoring, mirroring broader market dynamics where AI capex expectations impact equity valuations.
Why It Matters
JPMorgan's addition of energy and tech-adjacent infrastructure plays highlights how major institutions are positioning around AI hardware bottlenecks beyond pure chipmakers. As data centers face severe power deficits through 2030, distributed power suppliers like Liberty Energy are increasingly viewed as crucial beneficiaries of enterprise AI expansion. Investors should watch whether October's historical seasonal strength materializes while keeping a close eye on consumer credit performance.
