Top Three Likely Outperformers BTIG Analysts Expect to Jump This Year

Analysts at BTIG, an investment bank now owned by U.S.

Bancorp (NYSE: USB ), have published a list of the top U.S. stocks they expect to outperform in the second half of the year.

Among the companies on the list are On Holding (NYSE: ONON ), Palo Alto Networks (NASDAQ: PANW ), and Capital One Financial (NYSE: COF ).

BTIG Believes On Holding Has More Room for Growth On Holding, a top competitor to Nike (NYSE: NKE ) and Lululemon (NASDAQ: LULU ), has slumped by over 42% from its all-time high.

This retreat mirrors that of its other competitors and is a sign that investors anticipate its growth to moderate.

BTIG believes that the stock can jump to $70, double where it is today, noting that it has more room for growth.

The report said: "While the bear case assumes moderating growth, we see a balanced and sustainable growth profile, with opportunity across both lifestyle and running, channels of distribution, product category, and geography." Analysts expect that On Holdings’ annual revenue will be $3.56 billion this year, with an 18% annual growth rate.

It will then jump by 20% in the following year to $4.2 billion.

In contrast, Nike and Lululemon are expected to have a flat revenue growth this year.

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This surge has been driven by fear that demand for cybersecurity will accelerate as AI agents become more common.

BTIG argued that PANW has the widest cybersecurity offering, especially after the CyberArk buyout.

It now expects that the company can sustain its mid-teens revenue growth in the next few years.

Still, a key challenge for PANW is that it is a highly expensive company, with its forward non-GAAP PE rising to over 93.

Its GAAP PE ratio has jumped to 255, higher than the sector median of 33.

Capital One Financial May Bounce Back BTIG believes that the Capital One stock price has room for a recovery in the near term.

COF is already up by 17% from its lowest level this year.

It remains 20% below the year-to-date high, making it one of the top laggards in the S&P 500 Financials segment.

BTIG expects the stock to jump by 26% to $259, pointing to its ongoing integration with revenue and expense savings.

By integration, the analysts were referring to its buyout of Discover and Brex.

The analysts expect to see more revenue growth and margin expansion in the long term.

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