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As the stock market continues to churn near all-time highs, BMO Capital Markets has some ideas for individual stocks that can work in the future. The backdrop for BMO’s recommendations: U.S. stocks recently hitting all-time highs, a stunning recovery from the early April sell-off on the back of President Donald Trump’s imposition of higher tariffs. Now investors ask if there’s cause for optimism that more gains are in store — or if the market is too overbought. But BMO is confident, with chief investment strategist Brian Belski telling clients in a recent note that U.S. stocks remain in a bull market. While he acknowledged some valuation measures are above their historical average, he said they’re probably not as severe as they look. “We understand the sentiment, but we disagree with any suggestion that U.S. stocks may be headed for a severe or prolonged downturn based on valuation alone,” Belski wrote. “Instead, we continue to recommend that investors ‘stay the course’ and use any potential periods of market weakness as a buying opportunity.” Belski said those investors who are worried about valuations can protect themselves by looking at companies whose shares sell at lower price-to-earnings ratios, rather than higher-multiple growth stocks. To find such stocks, BMO screened for S & P 500 stocks that the bank has an outperform rating on and with a forward price-to-earnings multiple for the next 12 months below 15. Here are several that turned up: Pharmaceutical company Pfizer made it on to the BMO screen. The maker of the Eliquis blood thinner and Paxlovid treatment for Covid last week said the U.S. Food and Drug Administration is considering removing its authorization of the company’s Covid-19 vaccine for healthy children under the age of 5. Pfizer has fallen more than 5% in 2025, on track for its fourth straight annual decline, although it yields almost 7%. While the majority of analysts polled by LSEG have a hold rating, the average price target implies shares can rally more than 16% over the next year. Constellation Brands , the brewer of Corona and Modelo beer, also met the BMO criteria. Shares have fallen 24% so far in 2025, on pace for their worst year since 2018. The stock yields almost 2.5%. Despite this year’s rough patch, Wall Street expects a recovery. The consensus rating among analysts surveyed by LSEG is buy, with an average price target projecting about 26% upside over the next year.
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