Market Retreat Ahead: 2 Buys From Raymond James Experts Despite Cooling Trends
Markets Retreat from Record Highs, Analysts Still Find Value in Select Stocks
The recent downturn in markets has prompted concerns about the sustainability of current valuations, with some analysts warning that a pullback could be on the horizon. However, despite these cautionary notes, several top stocks remain poised to outperform in the coming months.
Raymond James chief investment officer Larry Adam highlights the improved economic landscape, noting that inflation has cooled faster than expected and the Federal Reserve delivered another 25-basis-point rate cut in October. Additionally, early signs suggest U.S.–China trade tensions may be easing following President Trump’s recent trip to Asia.
Even so, Adam warns that markets are entering a more delicate phase. "With valuations now sitting in the top 1% of the past two decades and much of the good news already priced in, we remain cautious," he says. "Any disappointment could trigger a modest pullback, though we would view it as a healthy correction within a still-strong bull market, underpinned by solid fundamentals."
Despite these concerns, Raymond James analysts are finding opportunities among several top stocks that they believe can continue to outperform even in the face of a potential pullback.
ViaSat: Leveraging Advanced Technology and Defense Contracts
One such stock is ViaSat, Inc. (VSAT), a global communications company specializing in satellite communications and networking services. The firm launches, maintains, and operates a constellation of three Ka-band satellites, the ViaSat-3 group, which provide high-speed data transmission.
ViaSat’s unique advantage lies in its ability to offer reliable coverage over wide areas through multiple satellites in geosynchronous orbit. This makes it an attractive partner for customers across various industries, including aviation, maritime, and defense. In addition, the company is currently launching its VS-3 Flight 2 and Flight 3 satellites, set to double the bandwidth capacity of the fleet.
The recent quarterly results showcase ViaSat’s continued growth, with revenues up 2% year-over-year at $1.14 billion. Although net income fell into loss territory (-$61.4 million), it marked an improvement from the preceding quarter and a year earlier. Moreover, the company’s Defense and Advanced Technologies segment saw a record backlog of $1.2 billion.
Raymond James analyst Brent Penter asserts that despite ViaSat’s impressive valuation and the ongoing launch risks associated with its growing fleet, there is still significant potential for growth ahead. He maintains an Outperform (i.e., Buy) rating on the stock, accompanied by a $52 price target implying a 45% upside in the next 12 months.
Universal Health Services: A Leader in Healthcare
Another top pick from Raymond James is Universal Health Services (UHS), a provider of hospital and healthcare services across the US and UK markets. With over 400 facilities in operation, this company boasts an impressive network of hospitals and healthcare centers offering acute care, behavioral health services, emergency rooms, and outpatient clinics.
The fiscal 2026 second-quarter results highlight several strengths for UHS: top-line growth at $4.5 billion (up 13.4% year-over-year), a non-GAAP EPS beat by 74 cents per share, and $2.57 billion in repurchased shares from the previous quarter’s authorization. Raymond James analyst John Ransom has taken an optimistic stance on UHS due to several key factors: improved execution in quarterly results, easy comparisons for subsequent quarters, attractive valuation relative to competitors HCA, a commitment to capital return with increased share buybacks, and superior transparency regarding policy impacts.
Ransom maintains an Outperform (i.e., Buy) rating for the stock along with a $270 price target, projecting a 19% upside going into next year. UHS has received 16 recent analyst reviews, supporting its Moderate Buy consensus rating.
Conclusion
As the market landscape shifts and valuations are scrutinized, stocks like ViaSat and Universal Health Services offer potential opportunities for investors seeking outperformance in the coming months. These companies have demonstrated robust growth and resilience despite facing challenges inherent to their industries. By carefully evaluating analyst opinions and tracking performance metrics, investors can navigate the complex market environment and make data-driven investment decisions.
While some analysts caution about a potential pullback, these top stocks continue to reflect substantial room for growth and upside potential, warranting close attention from investors seeking high-value additions to their portfolios.
Market Retreat Ahead: 2 Buys From Raymond James Experts Despite Cooling Trends
Markets Retreat from Record Highs, Analysts Still Find Value in Select Stocks
The recent downturn in markets has prompted concerns about the sustainability of current valuations, with some analysts warning that a pullback could be on the horizon. However, despite these cautionary notes, several top stocks remain poised to outperform in the coming months.
Raymond James chief investment officer Larry Adam highlights the improved economic landscape, noting that inflation has cooled faster than expected and the Federal Reserve delivered another 25-basis-point rate cut in October. Additionally, early signs suggest U.S.–China trade tensions may be easing following President Trump’s recent trip to Asia.
Even so, Adam warns that markets are entering a more delicate phase. "With valuations now sitting in the top 1% of the past two decades and much of the good news already priced in, we remain cautious," he says. "Any disappointment could trigger a modest pullback, though we would view it as a healthy correction within a still-strong bull market, underpinned by solid fundamentals."
Despite these concerns, Raymond James analysts are finding opportunities among several top stocks that they believe can continue to outperform even in the face of a potential pullback.
ViaSat: Leveraging Advanced Technology and Defense Contracts
One such stock is ViaSat, Inc. (VSAT), a global communications company specializing in satellite communications and networking services. The firm launches, maintains, and operates a constellation of three Ka-band satellites, the ViaSat-3 group, which provide high-speed data transmission.
ViaSat’s unique advantage lies in its ability to offer reliable coverage over wide areas through multiple satellites in geosynchronous orbit. This makes it an attractive partner for customers across various industries, including aviation, maritime, and defense. In addition, the company is currently launching its VS-3 Flight 2 and Flight 3 satellites, set to double the bandwidth capacity of the fleet.
The recent quarterly results showcase ViaSat’s continued growth, with revenues up 2% year-over-year at $1.14 billion. Although net income fell into loss territory (-$61.4 million), it marked an improvement from the preceding quarter and a year earlier. Moreover, the company’s Defense and Advanced Technologies segment saw a record backlog of $1.2 billion.
Raymond James analyst Brent Penter asserts that despite ViaSat’s impressive valuation and the ongoing launch risks associated with its growing fleet, there is still significant potential for growth ahead. He maintains an Outperform (i.e., Buy) rating on the stock, accompanied by a $52 price target implying a 45% upside in the next 12 months.
Universal Health Services: A Leader in Healthcare
Another top pick from Raymond James is Universal Health Services (UHS), a provider of hospital and healthcare services across the US and UK markets. With over 400 facilities in operation, this company boasts an impressive network of hospitals and healthcare centers offering acute care, behavioral health services, emergency rooms, and outpatient clinics.
The fiscal 2026 second-quarter results highlight several strengths for UHS: top-line growth at $4.5 billion (up 13.4% year-over-year), a non-GAAP EPS beat by 74 cents per share, and $2.57 billion in repurchased shares from the previous quarter’s authorization. Raymond James analyst John Ransom has taken an optimistic stance on UHS due to several key factors: improved execution in quarterly results, easy comparisons for subsequent quarters, attractive valuation relative to competitors HCA, a commitment to capital return with increased share buybacks, and superior transparency regarding policy impacts.
Ransom maintains an Outperform (i.e., Buy) rating for the stock along with a $270 price target, projecting a 19% upside going into next year. UHS has received 16 recent analyst reviews, supporting its Moderate Buy consensus rating.
Conclusion
As the market landscape shifts and valuations are scrutinized, stocks like ViaSat and Universal Health Services offer potential opportunities for investors seeking outperformance in the coming months. These companies have demonstrated robust growth and resilience despite facing challenges inherent to their industries. By carefully evaluating analyst opinions and tracking performance metrics, investors can navigate the complex market environment and make data-driven investment decisions.
While some analysts caution about a potential pullback, these top stocks continue to reflect substantial room for growth and upside potential, warranting close attention from investors seeking high-value additions to their portfolios.