Oppenheimer March US stock strategy: Momentum strategy is timely, recommending stocks such as Apple Inc. (AAPL.US), Alcoa Corporation (AA.US), Baker Hughes (BKR.US), etc.

As March gradually unfolds, Oppenheimer analysts pointed out that multiple sectors are showing bullish momentum, bringing trading opportunities. Historical data shows that when the S&P 500 index is above the 200-day moving average, the stock market tends to perform positively. The analysts wrote in their report, "Based on historical performance, market returns in March are usually better than in February." They added that since 1950, with the above technical formation, the benchmark index has averaged a 1.2% increase, with a 66% probability of rising. Oppenheimer's technical analysis shows that the S&P 500 index is still operating above the 6520 support level, maintaining an upward trend. The consolidation trend in the past four months has effectively relieved the previous overbought pressure. As the bull market cycle enters its fourth year, analysts recommend that investors shift their focus from large-cap stocks to more broad market opportunities, expressing a preference for "embracing the strength reflected in market breadth, rather than being fixated on the strength of market capitalization". Oppenheimer pointed out that although the "seven giants" have been dragging down the S&P 500 index since last October, momentum factors continue to show resilience amid value style rotations. Analysts emphasized that avoiding weak areas and capturing strong individual stocks are equally important, revealing that their underweight position in the software sector provides strong support for their momentum strategy. Within the technology sector, Oppenheimer observed a clear divergence between software stocks and equal-weighted tech stocks. The analysts wrote, "Since we downgraded ratings in mid-January, the software sector continues to drag down the performance of tech stocks." Data shows that after excluding software stocks' -10% momentum score, the overall tech sector rating significantly improved from -4% to +6%. Stocks given a "buy" rating in the technology sector by Oppenheimer include: Apple Inc. (AAPL.US), TE Connectivity Ltd. (TEL.US), Jabil Inc. (JBL.US), and MongoDB (MDB.US). In Oppenheimer's momentum quant model, the biotechnology and metals and mining sectors rank high in industry rankings. Analysts believe that for the biotechnology sector, "the lost decade may have reached a turning point." Data shows that the biotechnology equal-weighted ETF has regained the four-year average since June 2021; while the metals and mining sector have completed a ten-year bottoming formation and breakout. The institution's "buy" targets in these two sectors include: biotech companies Amgen (AMGN.US), Gilead Sciences, Inc. (GILD.US), Moderna (MRNA.US), and United Therapeutics Corporation (UTHR.US); and mining companies Alcoa Corporation (AA.US), Freeport-McMoRan Inc. (FCX.US), MP Materials (MP.US), and Century Aluminum Company (CENX.US). Furthermore, the energy sector's recent performance is also attracting attention. Oppenheimer pointed out, "In our latest model, the momentum score of the energy sector has jumped from 0% to +4%", one of the largest monthly increases. Analysts believe that the sector's SPDR ETF has also broken through a technical resistance level that has persisted for twelve years since 2014, indicating that a long-term bottom is forming. Energy stocks they favor include: Baker Hughes (BKR.US), TechnipFMC (FTI.US), Targa Resources (TRGP.US), and Valero Energy Corporation (VLO.US).