Stock picks of the week highlight 5 stocks with consistent score improvement and upside potential of up to 28%. The optimism for a possible India-US tariff deal is based on India's reaction to a tweet from US President Trump, indicating that a deal may be in the works.
Investors are keeping a keen eye on the stock market this week, with five promising stocks making headlines for their consistent score improvement and significant upside potential. The optimism surrounding these picks is bolstered by the potential for an India-US tariff deal, as indicated by India's reaction to a tweet from US President Trump, suggesting that a deal may be in the works.
Allstate Corp (ALL)
Allstate Corp has reported a significant improvement in its Q2 underlying combined ratio, driven by reduced catastrophe losses. The insurer's combined ratio, a key metric for profitability, dropped to 79.5% from 84.3% in the same period last year, marking a notable year-over-year improvement [1]. Fitch Ratings predicts sustained underwriting profitability for property and casualty insurers like Allstate as the year progresses. Analysts have set an average price target of $233.65, indicating a potential upside of 15.94% from its current trading price of $201.53. GuruFocus estimates suggest a potential downside of 13.71% from its current price, based on GF Value calculations [1].
Reliance Industries
Nuvama has a 'Buy' call on Reliance Industries, with a target price of Rs 1,733 per share, translating to an upside potential of nearly 28% from the current price of Rs 1,357. The brokerage is upbeat about RIL’s ambitious plans in energy transition, retail, and digital. By 2032, Reliance is targeting 3MMTPA of Green Hydrogen capacity, a 3GW electrolyser project, and a 40GWh battery facility scalable to 100GWh [2].
Asian Paints
Nuvama has reiterated its 'Buy' rating on Asian Paints with a target price of Rs 2,935, translating to an upside potential of about 18% from the current price of Rs 2,490. The brokerage highlights signs of a revival in demand, especially in rural areas, while urban markets are stabilising. Raw material costs remain benign, which is likely to support margins through FY26 [2].
United Breweries
Nuvama has recommended 'Buy' call on United Breweries with a target price of Rs 2,400 per share, implying a potential upside of nearly 34% from the current market price of around Rs 1,796. The company has made a big push in Andhra Pradesh by expanding the production of its flagship brand, which will help prevent stock-outs during peak demand seasons and reduce supply bottlenecks [2].
India-US Tariff Deal Optimism
The potential for an India-US tariff deal has added to the optimism surrounding these stock picks. India's reaction to a tweet from US President Trump, indicating that a deal may be in the works, has bolstered investor confidence. This positive development could lead to increased trade and investment between the two countries, benefiting various sectors and companies.
Conclusion
Investors should closely monitor these five stocks for their consistent score improvement and significant upside potential. The optimism surrounding an India-US tariff deal further enhances the attractiveness of these picks. As always, thorough research and due diligence are recommended before making any investment decisions.
References:
[1] https://www.gurufocus.com/news/3097536/allstate-all-sees-improved-underwriting-results-amid-reduced-catastrophe-losses
[2] https://www.financialexpress.com/market/3-buy-recommendations-by-nuvama-with-up-to-34-upside-reliance-industries-asian-paints-united-breweries-3966051/
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