These are JPMorgan’s favorite stocks heading into July

JPMorgan has updated its monthly top stock picks for July, adding biotechnology firm Scholar Rock and construction supplies company Carlisle Companies to its focus list, while removing Vera Therapeutics and Alarm.com. Scholar Rock's inclusion follows favorable Phase 2 trial results for its weight loss drug candidate, with JPM's price target implying 29% upside. Carlisle Companies, which recently completed an acquisition, was added with a price target suggesting 26% upside. These selections come as U.S. stocks concluded the first half of 2025 at record highs, with the S&P 500 advancing nearly 11% in Q2.

Analysis

JPMorgan has updated its analyst focus list for July, introducing biotechnology firm Scholar Rock (SRRK) and industrial supplier Carlisle Companies (CSL) as top picks, while removing Vera Therapeutics (VERA) and Alarm.com (ALRM). This rotation occurs within a strong market context, where the S&P 500 rallied nearly 11% in Q2 2025 to finish the first half at record highs. The addition of Scholar Rock is catalyst-driven, following favorable Phase 2 trial results for its weight loss drug, apitegromab, in combination with Eli Lilly's therapies. Despite being down 18% year-to-date, SRRK stock has rebounded 19% in the last month, and JPMorgan's $46 price target implies approximately 29% upside. Carlisle Companies, a building materials maker up 7% year-to-date, was added following its recent acquisition of Bonded Logistic, with JPM's $500 price target suggesting a 26% potential gain. The changes reflect a strategic pivot by JPMorgan towards companies with specific, positive fundamental developments.

Key Decisions for Investors

• Investors with a higher risk appetite should consider Scholar Rock (SRRK) as a catalyst-driven biotechnology play, noting the significant upside potential highlighted by its recent positive trial data and JPMorgan's endorsement.
• Carlisle Companies (CSL) may appeal to investors seeking exposure to the industrials sector with a clear growth-through-acquisition strategy, supported by its recent purchase and a 26% upside price target from a major bank.
• Holders of Vera Therapeutics (VERA) and Alarm.com (ALRM) should review their investment thesis, as the removal from JPMorgan's influential focus list could signal a deteriorating outlook or better relative opportunities elsewhere.