Here are JPMorgan's favorite stocks for April
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At the outset of April, JPMorgan added three stocks in the technology sector to its top stock picks. The bank also swapped out a major discount chain, natural gas producer and childhood education company from the list. Each month JPMorgan updates its top stock picks across growth, value, income and short investment strategies. The runup to April was volatile with pressure from the U.S.-Iran war. Oil prices breached the $100 per barrel-mark several times as the conflict disrupted the flow of oil from the Middle East and sparked concerns that inflation will rise once again. While defense stocks and the energy sector rallied, travel and consumer discretionary struggled. AI disruption fears also lingered, with major technology and software companies struggling to regain momentum in March. However, on Tuesday, the last day of the month, all three indexes booked gains and saw their best daily performance since May. The market rally came after The Wall Street Journal reported that the conflict in the Middle East could soon end. JPMorgan's list of top stocks in April included software companies JFrog and Palo Alto Networks . The stocks are seen as AI adoption beneficiaries. Analyst Ken Goldman wrote that JFrog is "well positioned to benefit from meaningful AI related tailwinds." Though the bank has a bullish outlook on JFrog, the company is down 23% year to date. Goldman attributed its underperformance to the "fear of long term AI disruption." Others on Wall Street also like the stock, with all but one analyst covering it rating the shares a strong buy or a buy, according to LSEG. On average, analysts see about 42% upside for the stock. Palo Alto Networks also has an opportunity for growth despite a rocky first quarter, according to the bank. JPMorgan is "incrementally more positive" as the cybersecurity company continues to gain market share and positions itself as am AI beneficiary. Of the 56 analysts that follow Palo Alto, 44 rate it a stong buy or buy, LSEG said. The consensus price target estimates shares could rally 31.5% from here. JPMorgan added food, uniform and facilities provider Aramark back to its list of top stocks after the company posted a "well-anchored" 2026 outlook. Unlike the AI beneficiary stocks, Aramark has performed well since the start of the year. The stock is up 12% year to date. Fourteen of the 16 analysts covering the company rate it a buy or strong buy, and see 12% further upside ahead based on the average price target, LSEG said. The bank removed Five Below , Bright Horizons and EQT from its picks. Five Below outperformed the S & P 500 by less than 20% since its addition to the list. JPMorgan removed natural gas producer EQT in favor of shale oil names, which the bank views as "relative winners" amid the conflict in the Middle East. Bright Horizons, on the other hand, faces weak industry-wide enrollment in childcare services, the firm said. Though JPMorgan removed these companies from its favorite stocks, it reiterated overweight ratings on each.