The real driver for stocks trading at all-time highs, according to this strategist

Citi's Drew Pettit projects significant upside for Equifax (EFX) into 2026-2027, driven by anticipated rate cuts improving housing demand and earnings, despite recent short-term mortgage rate increases. Concurrently, Robert Teeter of Silvercrest Asset Management attributes the current market rally to robust Q2 earnings, which grew 13.3% year-over-year, while cautioning about risks from inflation and jobs data. Separately, Dan Ives raised his Apple (AAPL) price target to $310 from $270, citing strong demand for the new iPhone 17 and an expected upgrade supercycle among users.

Analysis

The current market rally to all-time highs is being attributed to robust corporate earnings momentum, with second-quarter profits growing 13.3% year-over-year, significantly outpacing the 5.8% consensus estimate from July. While this trend of expanding margins is expected to continue, the market faces near-term risks from upcoming inflation and jobs data, which could trigger volatility. In specific equities, Citi has issued a bullish call on Equifax (EFX), anticipating that future rate cuts will stimulate housing demand and drive earnings well above consensus for fiscal 2026-2027, despite a minor recent uptick in mortgage rates. The thesis is supported by long-term structural tailwinds, including an underbuilt U.S. housing market. Separately, analyst Dan Ives has increased his price target on Apple (AAPL) to $310 from $270, citing strong demand for the iPhone 17. The optimism is fueled by a potential upgrade supercycle, with 315 million users on devices over four years old, and strong early interest in the new iPhone Air model.

Key Decisions for Investors

• Investors should consider maintaining equity exposure to capitalize on the strong earnings growth trend, while closely monitoring upcoming inflation and jobs reports as potential catalysts for near-term market volatility.
• For those with a longer-term investment horizon, Equifax (EFX) warrants consideration as a cyclical play on the expectation of lower interest rates stimulating the housing and credit markets.
• The bullish analyst sentiment on Apple (AAPL), supported by a $310 price target and a compelling iPhone upgrade cycle narrative, suggests that positions could be initiated or added to ahead of the anticipated sales acceleration.
• Monitor consumer demand signals for Apple's new products, particularly the iPhone Air, and track mortgage rate trends as key validation points for the respective analyst theses on AAPL and EFX.