Credit Suisse believes the July inventory market rally will proceed, and has an inventory of names that would proceed to experience the momentum from right here. Stocks capped a robust month on Friday, rallying sharply off their June lows, as merchants wager that markets have already priced within the likeliest recession expectations and shifted into extra dangerous belongings. The tech-heavy Nasdaq Composite jumped greater than 10% in July. The comeback might proceed in August, led by extra speculative belongings, in accordance with Credit Suisse. The funding financial institution pointed to a extra dovish stance from the Federal Reserve, which final week issued assurances that the U.S. financial system isn’t in a recession , helped by a strong labor market. “With commodity prices falling and economic data softening, inflation is projected — based on both breakevens and economist forecasts — to steadily decline over the next 24 months,” Credit Suisse senior fairness strategist Patrick Palfrey wrote in a Thursday notice. “We believe this will lead the Fed to pivot toward more dovish policy as we move toward the latter part of the year, supporting a continuation of the market’s current rally and factor leadership,” Palfrey added. To make certain, in the present day’s favored shares might get harm ought to buyers return to a defensive tilt. Still, Credit Suisse recognized shares which have essentially the most publicity to 5 components which have led this month’s rally, and will proceed using the momentum larger: Speculative, costly, overwhelmed down, unstable and extremely shorted. Since the June lows, speculative shares which have a robust correlation to Bitcoin rallied 16.8%, whereas costly belongings with a excessive P/E jumped 16.6%. Meanwhile, the S & P 500 returned 9.9% over the identical interval. Here are 10 names that Credit Suisse believes might rally farther from present costs: Generac met Credit Suisse’s standards, and might proceed to rally from right here, the financial institution stated. The backup energy inventory was lately given an chubby score by Wells Fargo, which considers the Wisconsin-based firm a local weather change winner as owners deal with an more and more unstable energy grid. Shares are down 23% yr to this point. Etsy might proceed to surge larger from its present worth. The e-commerce firm has a “best-in-class marketplace model with visionary management team,” in accordance with a notice final month from Raymond James that gave Etsy an outperform score. Shares are 50% decrease this yr. Some cruise shares might get a lift from any continued rally. Susquehanna initiated protection of Norwegian Cruise Line Holdings final month with a constructive score, citing its pricing energy. The inventory is down about 40% this yr. Other shares included on the Credit Suisse display embrace Ceridian , American Airlines , Carnival , Caesars Entertainment , Penn National Gaming , Salesforce and Intuit .