SUPERNEWS

Equities

Mizuho's May Picks: EyePoint, UHS, Block with Big Upsides

Mizuho selects 24 stocks for May, spotlighting new entries and tech giants, amidst facing over $100 million in losses from risky trades.

By Alex P. Chase

ᐧ

5/3, 06:59 EDT
Amazon.com, Inc.
Microsoft Corporation
NVIDIA Corporation
Block, Inc.
Universal Health Services, Inc.
article-main-img

Key Takeaway

  • Mizuho Securities selects 24 stocks for May, including new picks EyePoint Pharmaceuticals, Universal Health Services, and Block alongside tech giants Nvidia, Microsoft, and Amazon.
  • New addition Universal Health Services sees over 11% stock increase in 2024 with an expected 18% upside; EyePoint Pharmaceuticals projected to have a 95% upside.
  • Mizuho faces over $100 million losses from risky trades by All Blue Capital, highlighting financial industry's risk management challenges.

Mizuho's May Stock Picks

Mizuho Securities has unveiled its top stock picks for May, featuring a mix of new entries and established technology giants. The list comprises 24 high-conviction, catalyst-driven ideas spanning six sectors, with EyePoint Pharmaceuticals, Universal Health Services, and Block being the notable new additions. These selections join technology stalwarts such as Nvidia, Microsoft, and Amazon, with the latter two recently surpassing quarterly earnings and revenue expectations. Mizuho's recommendations offer a diverse portfolio, from healthcare and financials to consumer discretionary and information technology sectors.

Spotlight on New Additions

Among the new entries, Universal Health Services has garnered attention with its stock up over 11% in 2024. Mizuho analyst Ann Hynes projects nearly 18% upside from its current price, citing improvements in premium labor trends and service mix as key drivers. EyePoint Pharmaceuticals, another new pick, is highlighted for its lead asset, Duravyu, which Mizuho believes could set a new standard in retinal disease treatment. Despite a 14% decline in its stock this year, Mizuho sees a 95% upside. The financial services firm Block is also on the list, with analyst Dan Dolev predicting over 20% gross profit growth in 2024, exceeding current guidance.

Legal Challenges and Risk Management

Mizuho and Nomura Holdings face over $100 million in losses due to risky trades by All Blue Capital, spotlighting issues in risk management. Mizuho has sued All Blue for $19 million in New York, while Nomura anticipates a potential $89 million loss impacting its quarterly results. These developments raise concerns about the financial industry's vulnerability to high-risk investments and underscore the need for better regulatory oversight and risk management practices.

Street Views

  • Ann Hynes, Mizuho (Bullish on Universal Health Services):

    "UHS operates in two segments: Acute Care and Behavioral Health. We believe both segments should benefit from meaningful margin expansion opportunity over the next 12-24 months driven by an increase in demand and easing labor pressures."

  • Graig Suvannavejh, Mizuho (Bullish on EyePoint Pharmaceuticals):

    "Notably, amidst competition, we view EYPT as being a best-in-class product."

  • Dan Dolev, Mizuho (Bullish on Block):

    "Plus, management has a renewed attentiveness towards cost control. This, coupled with stronger-than-expected top-line growth, can offer healthy [earnings before interest, taxes, depreciation and amortization] upside vs. guide."