Five stocks stand out heading into Friday, October 9, 2026, each carrying a bullish rating change issued on Thursday, October 8. The Federal Reserve's latest signals point to a pause, not an end, to rate increases. Minutes from the September 15-16 meeting, released October 7, showed that most participants judged another increase in the federal funds rate would likely be appropriate by year end. Markets have pushed that move later. As of October 7, futures priced a 19.4% chance of a hike at the October 27-28 meeting and roughly a 70% chance of one by the December 9 meeting. The 10-year Treasury yield held near 5.31% on October 8.
The five ideas below span AI software, backup power equipment, government consulting, payments, and outdoor building products. Editorial notes only, not investment advice.
Palantir Technologies (PLTR) – Goldman Sachs Upgrades to Buy
Palantir was upgraded from Neutral to Buy on Thursday by Goldman Sachs. Palantir sells data analytics and AI platforms to government agencies and large companies. In our view, rapid commercial adoption of its AI platform has broadened the business beyond its government roots.
Shares traded near $196.29 during Thursday's session, up about 1.12%, giving Palantir a market capitalization near $451 billion. The stock sits near its 52-week high of $207.52 and well above its low of $106.37. The trailing price-to-earnings multiple is a lofty 166.46.
Consensus reads buy, with 10 bullish, five neutral, and one bearish rating among 16 tracked firms. The average price target of $203.75 implies only about 4% upside, a sign the rally has caught up with most targets. UBS's Karl Keirstead raised his target to $250 on September 15, implying roughly 27%.
Risks: Valuation is the main concern, and the panel's low target sits at $90. Government budget delays, competition from larger software vendors, and any slowdown in commercial deal growth all remain factors to monitor.
Generac (GNRC) – Two Bullish Calls in One Day
Generac drew two bullish calls on Thursday. KeyBanc upgraded the stock from Sector Weight to Overweight, and Piper Sandler initiated coverage at Overweight. Generac is best known for home standby generators and is expanding into large backup power systems for data centers. In our view, data-center demand adds a new growth driver on top of storm-driven home generator sales.
Shares traded near $218.42 during Thursday's session, down about 1.32%, giving Generac a market capitalization near $13 billion. The 52-week range runs from $134.80 to $296.44, and the trailing price-to-earnings multiple is 50.41.
Consensus reads strong buy, with 14 bullish and three neutral ratings among 17 tracked firms. The average price target of $279.47 implies roughly 28% upside.
Risks: Some targets have come down recently. Citigroup's Vikram Bagri cut his target to $232 from $300 on September 30 while holding Neutral, and Cantor Fitzgerald's Manish Somaiya cut to $297 from $333 on October 5. Residential demand, which depends partly on storm activity, and competition in data-center power remain factors to monitor.
Booz Allen Hamilton (BAH) – Truist Takes a Contrarian Stance
Booz Allen was upgraded from Hold to Buy on Thursday by Truist analyst Tobey Sommer, who raised his price target to $85 from $70. Booz Allen provides consulting, technology, and cyber services to federal agencies, especially defense and intelligence. In our view, the stock's steep decline has priced in much of the pressure from federal spending cuts, leaving a low valuation.
Shares traded near $71.53 during Thursday's session, up about 4.14%, giving Booz Allen a market capitalization near $8.6 billion. The 52-week range runs from $59.50 to $109.10, the trailing price-to-earnings multiple is 11.19, and the dividend yield is near 3%.
This is a contrarian call. Consensus reads hold, with three bullish, four neutral, and three bearish ratings among 10 tracked firms. The average price target of $86.70 implies roughly 21% upside, while the median target of $77.50 implies about 8%.
Risks: Citigroup's John Godyn cut his target to $77 and Jefferies' Sheila Kahyaoglu cut hers to $75 on October 7, both holding neutral ratings. JPMorgan's Seth Seifman held Underweight at $85 in May. Federal contract cancellations and budget delays remain factors to monitor.
Global Payments (GPN) – Oppenheimer Upgrades to Outperform
Global Payments was upgraded from Perform to Outperform on Thursday by Oppenheimer. Global Payments processes card payments for merchants and sells point-of-sale software. In our view, the company's restructuring around its merchant business could unlock value after years of underperformance.
Shares traded near $82.68 during Thursday's session, up about 1.98%, giving Global Payments a market capitalization near $21 billion. The 52-week range runs from $61.16 to $95.88. The trailing price-to-earnings multiple reads negative because of charges that have weighed on reported earnings.
Consensus reads buy, with seven bullish and 10 neutral ratings among 17 tracked firms. The average price target of $97.18 implies roughly 18% upside. Wolfe Research's Darrin Peller holds the high target of $125.
Risks: Most of the panel remains neutral. Truist's Matthew Coad held Hold at $76 in May, and TD Cowen's Bryan Bergin holds Hold at $95. Merger integration, competition from fintech rivals, and slower consumer spending all remain factors to monitor.
Trex (TREX) – Deutsche Bank Upgrades the Decking Maker
Trex was upgraded from Hold to Buy on Thursday by Deutsche Bank analyst Collin Verron, who raised his price target to $57 from $53. Trex is the largest maker of composite decking and railing. In our view, homeowners continuing to choose low-maintenance composite over wood supports long-term growth, and lower rate-hike odds could help housing-related stocks.
Shares traded near $44.62 during Thursday's session, up about 1.83%, giving Trex a market capitalization near $4.6 billion. The 52-week range runs from $29.77 to $54.30, and the trailing price-to-earnings multiple is 26.69.
Consensus reads buy, with 11 bullish, four neutral, and two bearish ratings among 17 tracked firms. The average price target of $51.76 implies roughly 16% upside, while the Deutsche Bank target implies about 28%.
Risks: Stifel's W. Andrew Carter holds Hold at $49. High mortgage rates, weak spending on home improvement, and raw material costs all remain factors to monitor.
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