6 intriguing stocks investors should consider: Piper Sandler

The market has slightly rebounded, with some investors excited for a possible Santa Claus rally to close out the year. Piper Sandler's technical research team announced six stocks that are currently looking attractive for investor portfolios: Amazon (AMZN), Amgen Inc. (AMGN), Coterra Energy (CTRA), Lululemon (LULU), Assurant (AIZ), and Palo Alto Networks (PANW).

Jason Glazer, Piper Sandler & Co. Managing Director and Head of Product Management, joins Yahoo Finance to break down the company's picks, how they arrived there, and give insight into the chosen stocks.

"[Lululemon] stands out because it has both high earnings growth and earnings expectations and if you go into the business they have pretty high margins with about 45% of sales coming from company-owned sales and 45% of sales coming through the e-commerce channel," Glazer explains. "They're tremendous at product innovation, they keep full-price selling, unlike a lot of the discounting you see in the retail industry, and they also have some tremendous growth opportunities in China."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

AKIKO FUJITA: Well, Christmas may be coming early. Market bulls are hopeful for an end of year rally despite a bit of a flat trade in stocks this morning. The market's moves on Friday sent all three majors to their highest close in nearly two months. A new report from Piper Sandler's technical research team names six high conviction stocks that look for-- that look attractive for investor portfolios right now.

Let's bring in one of organizers behind that report. We've got Jason Glazer, Managing Director and Head of Product Management at Piper Sandler. Jason, this is always an interesting report. Before we have break down those six stocks, walk me through how you got to that.

JASON GLAZER: Now, well, first of all, thank you for having me this morning. So, you know, how did we get here? We continue to hear from investors in such a challenging and uncertain market is we want high conviction ideas, and how do you ferret that out, and what we did was combine our macro research which consists of our portfolio of strategy teams work and our technical analysts work with our stock analysts work.

And if you look at the Piper Sandler universe, we cover almost 1,000 stocks and about 570 are overweighted or buy ratings. We take our portfolio strategies model, which is called macro select, and right now it's looking for high quality. We define high quality as stocks that have strong earnings growth, profitability, strong returns as well as being low beta.

And they screen up about 50 plus stocks that rank in their top decile from that universe of overweights and then our technical analyst takes a look at the charts and they get me about 15 to 20 stocks that make it through the three screens, and then I follow up with our stock analysts to make sure, fundamentally, that these are the-- some of the highest conviction ideas and that makes it easy to go out to investors and say these are stocks we truly like top down and bottom up.

RACHELLE AKUFFO: And Jason, I mean, we're seeing a lot of tech companies on that list, but walk us through Lululemon being on that list. What makes them a stand out here in this crowd of tech?

JASON GLAZER: So Lulu stands out. Obviously, everyone knows the brand. It stands out because it has both high earnings growth and earnings expectations. And if you go into the business, they have pretty high margins with about 45% of sales coming from company owned stores and about 45% of sales coming through the e-commerce channel.

They're tremendous at product innovation. They keep full price selling unlike a lot of the discounting you see in the retail industry. And they also have some tremendous growth opportunities in China. So when you kind of break it down, it is attractive on the chart, it looks relatively strong compared to the retail group, and we think that the positives are going to continue to be a tailwind for Lulu here.