Freedom Broker has removed Apple and 11 other stocks from its top picks. Who has taken their place?

In early July, Freedom Broker almost completely updated its list of top investment ideas: of the 14 most attractive stocks from the second quarter, only two made it onto the broker’s list for the third quarter. In the updated strategy (available on Oninvest), the focus in the artificial intelligence sector has shifted from consumer devices (Apple) to data centers (Broadcom); in the energy sector, from gas infrastructure (ONEOK) to gas production (EQT); in commodities—from aluminum (Alcoa) to gold (Barrick Mining); and in China—from e-commerce (PDD) to fintech (Futu). A new trend in the industrial sector has been a focus on the defense industry, represented by Lockheed Martin.

— Broadcom ( IT sector, annual stock growth potential: 33%). Last quarter, Freedom Broker considered Apple the favorite in the IT sector, but that spot has now been taken by a bet on Broadcom, a key beneficiary of the data center boom. The company supplies specialized AI chips and other equipment for data centers, and also develops enterprise software. Freedom points to strong free cash flow and an order backlog that ensures stable demand through 2028. The target price is $490. Freedom’s outlook on the sector as a whole is neutral-positive.

— Abbott Laboratories (healthcare, growth potential: 30%). Freedom is betting on Abbott’s diversified healthcare business—ranging from patient devices and laboratory diagnostics to medical nutrition and branded pharmaceuticals. The broker expects strong revenue growth to continue over the next three years but points to risks to margins: tariffs, M&A costs, and fierce competition in the market for advanced PFA systems for treating arrhythmias. The target price is $120. The entire sector is rated neutral.

— IDT Corporation (financial sector, growth potential: 29%). Freedom highlights IDT’s combination of mature telecommunications businesses and growing cash flows from its POS terminal ecosystem for payments and the BOSS Money international money transfer service. The broker believes that the digitization of money transfers via BOSS Money and the development of NRS should support the company’s profitability. The target price is $75. The outlook for the sector is positive.

— Lockheed Martin (industrial sector, growth potential: 20%). Freedom identifies the company as a beneficiary of rising defense spending, demand for missile systems, and F-35 stealth fighters. It also notes support from the Pentagon: funding for 12 key programs, according to the broker’s estimates, is expected to grow by approximately 30% per year through 2032. The target price is $625. Freedom has a neutral view on the sector as a whole.

— Digital Realty Trust (real estate, growth potential: 26%). It is one of the largest publicly traded REITs (real estate investment trusts) in the data center segment, with a portfolio of over 300 properties. Freedom selected the company as a bet on growing demand for AI computing power amid a shortage. The brokerage notes that the fund’s order backlog grew by a quarter over the quarter. The target price is $223. The entire sector is rated neutral-positive.

— EQT Corporation (energy sector, growth potential: 14%) has replaced ONEOK on the list. Both companies operate in the natural gas sector but have different business models: ONEOK is an infrastructure company, while EQT is a natural gas producer. Freedom expects demand and prices for natural gas to rise in the second half of the summer. The brokerage also points to a sharp reduction in EQT’s net debt in the first quarter. The target price is $59.7. The sector rating is neutral.

— Northwest Natural Holdings (utility sector, growth potential: 17%). The company is engaged in natural gas distribution, water supply, and wastewater treatment in the U.S. Northwest, Texas, and other regions. The broker highlights a $2.6–2.9 billion capital expenditure program for 2026–2030: these investments are expected to expand the assets from which the company generates regulated revenue. Freedom also notes a dividend yield of about 4%. The target price is $57. The outlook for the sector as a whole is neutral-positive.

— Dollar General (consumer staples sector, growth potential: 22%). Freedom notes that in the first quarter of fiscal year 2026, the company’s sales grew due to an increase in customer traffic and average transaction value, while margins expanded thanks to higher markup and reduced inventory shrinkage. Target price: $140. Neutral view on the sector.

— Carnival ( travel and leisure, growth potential: 23%). Freedom describes the company as the largest cruise operator, accounting for approximately 36% of industry revenue and 42% of passenger traffic. In the fiscal quarter from March to May, Carnival reported record revenue and earnings that exceeded forecasts. The brokerage also points to strong demand for 2027 and the recent drop in oil prices, which will reduce fuel costs. The target price is $35. The tourism and leisure sector is viewed positively.

— Lululemon ( fashion retail, growth potential: 19%). The clothing retailer’s shares are trading 40% lower than at the start of the year, and Freedom sees this as an opportunity for medium-term purchases. Lululemon’s sales declined in the last quarter, and the company had to lower its full-year forecast. However, the broker considers some of the issues—ranging from a failed advertising campaign to the fallout from a cyberattack—to be temporary. The target price is $139. The outlook for the sector is neutral.

— Barrick Mining (commodities sector, growth potential: 32%). In its updated strategy, Freedom emphasizes high gold prices: with production costs of $1,400–1,950 per ounce and a spot price above $4,000, the sector’s profitability remains high. The brokerage also points to Barrick’s strong first-quarter operating results and a production outlook that suggests a steady increase in output. Despite improving fundamentals, Barrick’s shares continue to trade at a significant discount to most of its major peers, Freedom notes. The target price is $48. The entire sector is rated positively.

— Futu Holdings (Chinese stocks, growth potential: 32%). Shares of the Hong Kong-based online brokerage, known for its Futubull and Moomoo brands, have fallen sharply due to Beijing’s new campaign to tighten controls on cross-border stock trading; however, the market reaction appears to be excessive, according to Freedom. It considers Futu’s fundamentals to be strong: the company has maintained conservative guidance for 2026 and may exceed it. The target price is $130. Freedom views the Chinese market as a whole positively.

— Alphabet ( communications services sector, growth potential: 11%). Google’s holding company is one of two whose stocks made it through Freedom Broker’s quarterly portfolio update. In the second quarter, the firm had a target price of $365 for the stock, and in its third-quarter strategy, it raised the target to $400. The rationale remains the same: Google generates revenue from advertising but is gradually expanding its focus on cloud computing and AI. The brokerage believes that Alphabet is capable of growing revenue at double-digit rates in the coming years, despite the risk of “cannibalization” of internet search and rising capital expenditures. Its outlook for the sector as a whole is neutral-positive.

— Tesla ( automotive sector, growth potential: 6%). Freedom raised its price target for Elon Musk’s company from $440 to $450: it correctly predicted that Tesla’s second-quarter delivery figures would exceed expectations, despite weakness in the U.S. electric vehicle market. The sector as a whole received a neutral rating.

The key question for the third quarter in the U.S. stock market is whether the trend toward slowing inflation will take hold and whether this will prompt the Fed to shift its rhetoric to a more neutral stance, writes Freedom. Its base-case scenario for the second half of this year is that the oil shock will fade away, the Fed will leave rates unchanged, and corporate earnings will continue to grow. The brokerage estimates the probability of this scenario at 70%. In this case, the S&P 500 could rise to 8,000 points by the end of December, and the S&P Small Cap 600 could reach 2,000 points (up 7% and 11%, respectively).

In the optimistic “Freedom” scenario (15% probability), inflation will decline more rapidly, the economy will prove more resilient, and investors will once again be willing to pay more for stocks. Under this scenario, the S&P 500 could rise to 8,700 points, and the S&P Small Cap 600 could rise to 2,300 points.

The broker also assigns 15% to a negative scenario: inflation will prove to be more persistent, the Fed will maintain a hawkish stance, and market sentiment will deteriorate. In that case, the S&P 500 could stall around 6,650 points, and the S&P Small Cap 600 around 1,600 points.

Taking all scenarios into account, Freedom’s weighted target for the S&P 500 is 7,900 points by year-end and 8,150 points over a 12-month horizon. For the S&P Small Cap 600, the targets are 2,000 and 2,150 points, respectively.

This article was AI-translated and verified by a human editor