Credit Suisse believes the July stock market rally will proceed, and has an inventory of names that would proceed to ride the momentum from here. Stocks capped a powerful month on Friday, rallying sharply off their June lows, as traders bet that markets have already priced within the likeliest recession expectations and shifted into more dangerous assets. The tech-heavy Nasdaq Composite jumped greater than 10% in July. The comeback could proceed in August, led by more speculative assets, in response to Credit Suisse. The investment bank pointed to a more dovish stance from the Federal Reserve, which last week issued assurances that the U.S. economy is just not in a recession , helped by a strong labor market. “With commodity prices falling and economic data softening, inflation is projected — based on each breakevens and economist forecasts — to steadily decline over the subsequent 24 months,” Credit Suisse senior equity strategist Patrick Palfrey wrote in a Thursday note. “We consider this can lead the Fed to pivot toward more dovish policy as we move toward the latter a part of the 12 months, supporting a continuation of the market’s current rally and factor leadership,” Palfrey added. To ensure, today’s favored stocks could get hurt should investors return to a defensive tilt. Still, Credit Suisse identified stocks which have probably the most exposure to 5 aspects which have led this month’s rally, and will proceed riding the momentum higher: Speculative, expensive, beaten down, volatile and highly shorted. For the reason that June lows, speculative stocks which have a powerful correlation to Bitcoin rallied 16.8%, while expensive assets with a high P/E jumped 16.6%. Meanwhile, the S & P 500 returned 9.9% over the identical period. Listed here are 10 names that Credit Suisse believes could rally farther from current prices: Generac met Credit Suisse’s criteria, and might proceed to rally from here, the bank said. The backup power stock was recently given an obese rating by Wells Fargo, which considers the Wisconsin-based company a climate change winner as homeowners deal with an increasingly unstable power grid. Shares are down 23% 12 months up to now. Etsy could proceed to surge higher from its current price. The e-commerce company has a “best-in-class marketplace model with visionary management team,” in response to a note last month from Raymond James that gave Etsy an outperform rating. Shares are 50% lower this 12 months. Some cruise stocks could get a lift from any continued rally. Susquehanna initiated coverage of Norwegian Cruise Line Holdings last month with a positive rating, citing its pricing power. The stock is down about 40% this 12 months. Other stocks included on the Credit Suisse screen include Ceridian , American Airlines , Carnival , Caesars Entertainment , Penn National Gaming , Salesforce and Intuit .