MW Why Delta, Starbucks and these other stocks were just added to a market-beating 'fresh money' list
By Barbara Kollmeyer
Deutsche Bank offers stocks for the next 12 months
Deutsche Bank analysts believe Delta can navigate through an environment of higher fuel prices.
Stocks are poised to tumble as oil surges ahead of a long holiday weekend, after a speech from President Donald Trump failed to offer a clear timeline on when the Iran conflict will end.
For those investors wanting to look past geopolitical headlines, Deutsche Bank rolled out its second-quarter roundup of top sector stock picks to hold over the next 12 months. Their "Fresh Money" picks have gained 234% since third-quarter 2017 inception - versus a 202% gain for the S&P 500 SPX, says the bank. Analysts rate all the below stocks as buys.
Consumer: Colgate-Palmolive $(CL)$ is a newcomer, with a price target of $98 versus the current $85. Despite the volatile cost and operating backdrop due to fluctuating oil prices and currencies, Colgate is "making the right investments and centered on the right long-term priorities" aimed at unlocking growth, writes analyst Steve Powers. He likes its core strength in oral care, pet food, emerging markets, and analytics and AI.
Starbucks $(SBUX)$ is also a new pick - the bank has a $114 price target, on a stock trading around $86 currently. "We view SBUX as one of the highest-quality global restaurant companies and see significant potential upside to medium and long-term numbers," writes analyst Lauren Silberman. Starbucks is reaching an "inflection point" with a new hospitality model, more menu options and a reimagined loyalty program, proving its turnaround can succeed, she said.
Healthcare: Apogee Therapeutics (APGE) is flagged by analyst David Hoang who notes the biotech's "best-in-class potential" for its eczema treatment, Zumilokibart, whose expansion into treating asthma is "underappreciated" by investors. He has a $118 price target for Apogee, which trades around $84.
CVS Health $(CVS)$ is a new pick, with the bank flagging positives such as expected margin expansion in Medicare and its pharmacy unit, a reduction in legal overhang and a coming contract renewal with McKesson $(MCK)$. Analyst George Hill has set an $88 price target on the company that trades around $72.
Option Care Health (OPCH) and Thermo Fisher Scientific $(TMO)$ are two other new picks.
Industrials: Several new names have been added, including Delta Air Lines $(DAL)$. "We think Delta is best positioned to navigate through a higher fuel price environment given its diversified revenue streams (e.g., refinery, loyalty program, cargo, corporate, premium leisure, long-haul international) and investment-grade rated balance sheet," said analyst Michael Linenberg, who has an $85 price target - it currently trades at $67.
Space exploration group Intuitive Machines (LUNR) is a new add, and the bank likes its core offerings to study and "prep" the Moon for a permanent human base. Analyst Edison Yu sees a "long runway of growth as the U.S./allies accelerate spending as part of space race vs. China." Last year's acquisition of defense and communication satellite maker Lanteris will help expand its revenue stream, said Yu, who has a price target of $22 versus the current $20.
ESCO Technologies $(ESE)$, PPG Industries $(PPG)$, Rivian Automotive (RIVN), Waste Connections (WCN) and Xylem $(XYL)$ are other new additions.
Financials & fintech: Equitable Holdings $(EQH)$ is a fresh pick and "overly penalized for private credit exposure," said analyst Cave Montazeri. Its recent merger announcement with Corebridge Financial $(CRBG)$ "provides a catalyst to unlock value through cost synergies, scale economics and an undemanding valuation," said the analyst, who has a price target of $58 versus the current $37.
Visa (V) is another new pick. The bank said the credit-card giant is "positioned to outperform on the back of secular trends despite recent macro volatility while remaining insulated from AI displacement," with a price target of $410 versus the current $298.
More new adds include East West Bancorp $(EWBC)$, Huntingdon Bancshares $(HBAN)$, PennyMac Financial Services $(PFSI)$ and SL Green Realty (SLG).
Deutsche Bank also added two new chip stocks, Applied Materials (AMAT) and Broadcom $(AVGO)$.
The markets
U.S. stock futures (ES00) (YM00) (NQ00) are sinking as oil prices (CL.1) (BRN00) soar, while the yield on the 10-year Treasury note BX:TMUBMUSD10Y climbs. The dollar DXY is up and gold (GC00) is dropping.
Key asset performance Last 5d 1m YTD 1y S&P 500 6528.52 -0.42% -4.23% -4.63% 15.90% Nasdaq Composite 21,590.63 -0.79% -4.11% -7.11% 23.73% 10-year Treasury 4.286 -4.90 18.20 11.40 15.90 Gold 4749.4 5.46% -7.81% 9.63% 48.87% Oil 100.21 9.77% 31.68% 74.55% 41.70% Data: MarketWatch. Treasury yields change expressed in basis points
The buzz
President Donald Trump threatened to "bring Iran back to the stone ages" and gave no timeline for ending the war, as he insisted the Strait of Hormuz would reopen "naturally" because Iran will need to sell its oil, in an address to the nation. Iran's president asked Americans to look beyond "the machinery of misinformation."
Weekly jobless claims are due at 8:30 a.m., along with the U.S. trade deficit for February. Dallas Fed President Lorie Logan will speak at 10:15 a.m.
Tesla $(TSLA)$ is set to publish its first-quarter delivery update, expected to show 13% growth year over year.
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The chart
The chart from Oxford Economics illustrates the almost complete halt of global traffic through vital Strait of Hormuz amid the Iran conflict. Tankers passing through are 98% below what was seen the week before the war began in late February, Ryan Sweet, global chief economist, told clients in a note. "We expect traffic to increase to about 50% in May and June, but risks remain weighted to the downside," he said. The longer the strait is closed, the less effective strategic reserves and inventory reductions will become, "putting additional upward pressure on oil prices and the cost for the global economy," he said.
Top tickers
These were the top-searched tickers on MarketWatch as of 6 a.m.:
Ticker Security name NVDA Nvidia TSLA Tesla AMZN Amazon MU Micron GME GameStop TSM Taiwan Semiconductor Manufacturing AMD Advanced Micro Devices AAPL Apple META Meta BATL Battalion Oil
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BEYOND THE NEWS
MarketWatch Picks: I don't have long left, but my wife is younger. We have 7 figures, earning 4.25% in CDs and I-Bonds. How do I plan for the next 5 years?
-Barbara Kollmeyer
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April 02, 2026 06:44 ET (10:44 GMT)
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