Five stocks stand out heading into Tuesday, October 6, 2026, each carrying a bullish rating change issued on Monday, October 5. The bond market remains the main pressure point for stocks. The 10-year Treasury yield settled at 5.275% on October 2 after touching 5.33% on October 1, a multi-decade high. At the same time, expectations for another Federal Reserve rate hike at the October 27-28 meeting have faded. A September jobs report showing only 29,000 new jobs, released October 2, pushed Kalshi traders to price an 83% chance of a hold as of October 4. Minutes from the September 15-16 Fed meeting are expected during the week of October 5.
The five ideas below span banking, sports betting, beauty products, casual dining, and data-center infrastructure. Editorial notes only, not investment advice.
Wells Fargo (WFC) – Morgan Stanley Upgrades the Bank
Wells Fargo was upgraded from Equal-Weight to Overweight on Monday by Morgan Stanley analyst Manan Gosalia, who kept his price target at $102. With the asset cap that regulators imposed in 2018 now lifted, Wells Fargo is free to grow its balance sheet again. In our view, that gives it more room than most large banks to expand lending and trading revenue.
Shares traded near $81.81 during Monday's session, up about 1.70%, giving Wells Fargo a market capitalization near $247 billion. The 52-week range runs from $72.78 to $97.76, the trailing price-to-earnings multiple is 11.79, and the dividend yield is near 2%.
Consensus reads buy, with 11 bullish and five neutral ratings among 16 tracked firms. The average price target of $97.28 implies roughly 19% upside, while the Morgan Stanley target implies about 25%.
Risks: JPMorgan's Vivek Juneja cut his target to $91.50 from $95.50 on October 2 while holding Neutral, and Evercore ISI's John Pancari trimmed his to $90 on October 1 while holding Outperform. Credit losses in a slowing job market and pressure on deposit costs remain factors to monitor.
DraftKings (DKNG) – BofA Upgrades After a Steep Decline
DraftKings was upgraded from Neutral to Buy on Monday by BofA analyst Shaun Kelley, who kept his price target at $27. DraftKings runs one of the two largest online sports betting and casino platforms in the United States. In our view, the stock's sharp drop has priced in much of the bad news on competition and state taxes.
Shares traded near $19.90 during Monday's session, up about 7.05%, giving DraftKings a market capitalization near $10 billion. The stock sits just above its 52-week low of $18.52 and far below its high of $48.78. The company is not yet profitable on a trailing basis.
Consensus reads strong buy, with 25 bullish and two neutral ratings among 27 tracked firms. The average price target of $35.37 implies roughly 78% upside, though many targets predate the decline. The BofA target implies about 36%.
Risks: BTIG's Clark Lampen cut his target to $25 from $30 on October 1 while holding Buy. Higher state gaming taxes, competition from prediction markets, and sports results that favor bettors all remain factors to monitor.
Estee Lauder (EL) – Barclays Upgrades the Beauty Maker
Estee Lauder was upgraded from Equal-Weight to Overweight on Monday by Barclays analyst Lauren Lieberman, who raised her price target to $108 from $97. The company owns prestige beauty brands such as Clinique, MAC, and La Mer. In our view, its turnaround plan and cost cuts give it room to rebuild margins as travel retail in Asia stabilizes.
Shares traded near $93.77 during Monday's session, up about 1.96%, giving Estee Lauder a market capitalization near $34 billion. The 52-week range runs from $66.22 to $121.64, the trailing price-to-earnings multiple is a lofty 191.09, and the dividend yield is near 1%.
Consensus reads buy, with eight bullish, eight neutral, and one bearish rating among 17 tracked firms. The average price target of $105.06 implies roughly 12% upside, while the Barclays target implies about 15%.
Risks: The panel is split. On the same day as the upgrade, Wells Fargo's Christopher Carey cut his target to $95 from $104 while holding Equal-Weight. Demand in China, tariff costs, and the pace of the turnaround all remain factors to monitor.
Texas Roadhouse (TXRH) – Evercore ISI Upgrades to Outperform
Texas Roadhouse was upgraded from In Line to Outperform on Monday by Evercore ISI analyst David Palmer, although he trimmed his price target to $200 from $220. The chain is one of the strongest performers in casual dining. In our view, its value-focused menu and steady traffic growth help it hold up better than many peers as consumers tighten budgets.
Shares traded near $159.22 during Monday's session, up about 1.97%, giving Texas Roadhouse a market capitalization near $10.5 billion. The stock sits just above its 52-week low of $153.82 and well below its high of $216.30. The trailing price-to-earnings multiple is 25.45, and the dividend yield is near 2%.
Consensus reads buy, with 10 bullish and nine neutral ratings among 19 tracked firms. The average price target of $206.95 implies roughly 30% upside, and the Evercore target implies about 26%.
Risks: Beef costs are the biggest concern for margins. RBC Capital's Logan Reich cut his target to $220 from $235 on October 5, and JPMorgan's John Ivankoe holds Neutral at $200. Labor costs and slower consumer spending also remain factors to monitor.
Vertiv (VRT) – BMO Capital Initiates at Outperform
Vertiv drew a fresh Outperform initiation on Monday from BMO Capital, following a Wells Fargo Overweight initiation on September 25. Vertiv makes power and cooling equipment for data centers. In our view, the growing heat and power needs of AI servers keep demand for its liquid-cooling and power systems strong.
Shares traded near $256.42 during Monday's session, up about 1.68%, giving Vertiv a market capitalization near $99 billion. The 52-week range runs from $147.82 to $379.94, and the trailing price-to-earnings multiple is 58.06.
Consensus reads strong buy, with 14 bullish ratings and one neutral among 15 tracked firms. The average price target of $332.93 implies roughly 30% upside.
Risks: Several bulls cut targets in July, including RBC Capital's Deane Dray, who lowered his to $337 from $418. Any slowdown in data-center spending, supply-chain constraints, and competition in liquid cooling all remain factors to monitor.
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