JPMorgan adds Netflix and Ulta Beauty to its favorite stock picks

In the United States, JPMorgan has refreshed its Analyst Focus List as of May 4, 2025, highlighting a selection of stocks chosen amidst recent market fluctuations. The addition of renowned companies such as Netflix, Ulta Beauty, and AutoZone is aimed at aligning with various investment strategies including growth, income, and value. This decision comes in the wake of significant market volatility linked to new global tariffs introduced by President Donald Trump, which have affected investor sentiment and stock performance. Netflix, recognized as a leader in global streaming services, has seen its stock climb nearly 30% this year, with analysts optimistic about its future growth. The company's stock closed at $1,156.49 after reaching an all-time high, leading analysts to believe it is on a path to continuing success. Analyst Douglas Anmuth noted the positive outlook supported by the upcoming Advertising Upfronts in May, which could serve as a catalyst for further price growth. Despite this optimism, the average price target for Netflix appears to slightly lag behind the stock's valuation, indicating cautiousness among some analysts. Alongside Netflix, Ulta Beauty has also been spotlighted as a value investment opportunity. While the beauty retailer's shares have declined by 9% in 2025, analyst Christopher Horvers highlights its potential for improvement in market share performance and upward earnings revisions based on conservative margin guidance. Although most analysts hold a neutral stance on Ulta, Horvers' overweight rating indicates a belief in the stock's capacity for recovery and subsequent stock re-rating. AutoZone is included in the focus list as a growth idea, with bullish analysts citing increasing sales momentum due to improved customer service efforts and market share gains. Analyst sentiments project promising outcomes linked to tariff pricing benefits and the positive effects of share repurchases. The inclusion of these companies in JPMorgan's focus list reflects a strategic effort to navigate the shifting market landscape while favorably positioning investors for potential gains.