The Russell 1000 Growth Index is down from its highs for the year, and Citi believes that this has created an opportunity to “buy growth at a pullback”. The growth index has risen 25% on a total-return basis in 2023 and reached a peak of 34% on 19th July. According to Scott Chronert, since then the index has fallen more than 6% with a significant dispersion of single stocks. Nearly two-thirds (67%) of the stocks included in the index are down 10% or more since their 2023 highs. One-third of them is more than 20% lower. Chronert’s note of Friday said that the index prices did not reflect the pressure on individual stocks. “We think that there is a good medium-term set up for Growth, as we have a reasonable margin of safety in terms of fundamentals.” Citi looked for growth names that could be considered on a pullback. The stocks listed below were rated as buys by the firm. Russell assigns at least 75% market cap to growth style. After March 31, the market cap is down 10% or more compared to its year-to date highs. Estimates of consensus free cash flow per share above the March 31 level. Free cash flow per share in FY5 greater or equal to the market implied estimates. Look at the list to see where analysts think the stocks will go next. Lockheed Martin, a defense and aerospace company, is down 18% since its April 2023 high. The consensus estimate of the company’s cash flow per share has increased by nearly $5 since March. The company is struggling with issues related to its aircraft suppliers and has reduced its forecasts for F-35 deliveries for the full year earlier this month. The shares have dropped 15% in the past year. Pinterest’s shares have risen modestly since its investor day. However, they are still 14% below their highs for the year. Stock is up 8.8% by 2023. Management expects revenue growth of about 8% in this year, after a decline in 2022 and 203. Since the end of the 1st quarter, the estimate for the full-year cash flow per share has increased by $2.03. The list also included chipmakers Nvidia, KLA and others. Nvidia’s stock, which has risen more than 188% in the past year, is now 18% below its peak reached at the end of August. Nvidia may be overbought by some due to its massive year-to date rally, but the average price target indicates that shares could rise an additional 47.7% since Friday’s closing. Nearly 95% analysts rate the stock as a buy. KLA (based in the Netherlands) has fallen 14% since its peak of 2023. The stock has still risen more than 20% for the year. Michael Bloom, CNBC’s Michael Bloom, contributed to this article.
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