Five stocks stand out heading into Wednesday, October 7, 2026, each carrying a bullish rating change issued on Tuesday, October 6. Rate expectations have settled after a volatile stretch. As of October 6, Kalshi traders priced a 78% chance that the Federal Reserve holds its 3.75% to 4.00% target range at the October 27-28 meeting, and CME FedWatch put October hike odds near 18% as of October 5. Bond yields remain elevated, with the 10-year Treasury yield easing to 5.27% on October 6. Minutes from the September 15-16 Fed meeting are scheduled for release at 2:00 p.m. Eastern on October 7.
The five ideas below span household products, defense, auto parts, programmable chips, and electrical grid construction. Editorial notes only, not investment advice.
Procter & Gamble (PG) – Evercore ISI Upgrades the Consumer Staples Leader
Procter & Gamble was upgraded from In Line to Outperform on Tuesday by Evercore ISI analyst Robert Ottenstein, who raised his price target to $166 from $161. P&G owns household brands such as Tide, Pampers, and Gillette. In our view, its pricing power and steady demand for everyday essentials offer defense if hiring keeps slowing.
Shares traded near $148.60 during Tuesday's session, up about 1.82%, giving P&G a market capitalization near $353 billion. The 52-week range runs from $137.62 to $167.25, the trailing price-to-earnings multiple is 22.45, and the dividend yield is near 3%.
Consensus reads buy, with nine bullish and six neutral ratings among 15 tracked firms. The average price target of $162.93 implies roughly 10% upside, while the Evercore target implies about 12%. RBC Capital's Nik Modi holds Outperform at $166.
Risks: TD Cowen's Robert Moskow reiterated Hold at $150 on September 30, and Deutsche Bank's Steve Powers holds Hold at $162. High bond yields make dividend stocks less attractive by comparison, and commodity costs and slower volume growth remain factors to monitor.
Lockheed Martin (LMT) – Rothschild & Co Redburn Initiates at Buy
Lockheed Martin drew a fresh Buy initiation on Tuesday from Rothschild & Co Redburn, which also launched coverage of Northrop Grumman and Kratos Defense at Buy. Lockheed is the largest U.S. defense contractor and builds the F-35 fighter jet, missiles, and space systems. In our view, strong global defense budgets and demand for missile defense support a long order backlog.
Shares traded near $509.97 during Tuesday's session, up about 0.66%, giving Lockheed a market capitalization near $118 billion. The 52-week range runs from $437.25 to $692, the trailing price-to-earnings multiple is 18.78, and the dividend yield is near 3%.
Consensus reads buy, with five bullish, six neutral, and one bearish rating among 12 tracked firms. The average price target of $607.25 implies roughly 19% upside. UBS's Gavin Parsons upgraded to Buy with a $674 target on September 8.
Risks: The panel is split. Goldman Sachs' Noah Poponak held Sell at $517 in February, and Morgan Stanley's Kristine Liwag holds Equal-Weight at $690. Cost overruns on fixed-price programs, F-35 delivery timing, and federal budget negotiations all remain factors to monitor.
BorgWarner (BWA) – Morgan Stanley Raises Its Target Sharply
BorgWarner was upgraded from Equal-Weight to Overweight on Tuesday by Morgan Stanley analyst Andrew Percoco, who raised his price target to $95 from $71. That new target is the high end of the panel. BorgWarner makes engine, transmission, and electric-vehicle components for automakers. In our view, its ability to serve both gas-powered and hybrid vehicles helps it adjust as the shift to fully electric cars slows.
Shares traded near $62.98 during Tuesday's session, up about 4.51%, giving BorgWarner a market capitalization near $13 billion. The 52-week range runs from $40.50 to $78.82, the trailing price-to-earnings multiple is 31.00, and the dividend yield is near 1%.
Consensus reads strong buy, with nine bullish and three neutral ratings among 12 tracked firms. The average price target of $74.58 implies roughly 18% upside, while the Morgan Stanley target implies about 51%.
Risks: Auto production volumes, tariffs on parts and vehicles, and pricing pressure from automakers all remain factors to monitor. The gap between the Morgan Stanley target and the average also shows how widely views differ.
Lattice Semiconductor (LSCC) – William Blair Initiates at Outperform
Lattice Semiconductor drew a fresh Outperform initiation on Tuesday from William Blair. Lattice makes small, low-power programmable chips used in servers, factory equipment, cars, and communications gear. In our view, AI servers and edge devices are adding new uses for its chips after a long industrial slowdown.
Shares traded near $133.91 during Tuesday's session, up about 0.80%, giving Lattice a market capitalization near $18 billion. The 52-week range runs from $60.50 to $157.01, and the trailing price-to-earnings multiple is a very high 527.55.
Consensus reads strong buy, with all 11 tracked ratings bullish. The average price target of $155.91 implies roughly 16% upside. KeyBanc's John Vinh holds the high target of $180.
Risks: Valuation leaves little room for error, and a unanimous panel means few upgrades remain. Industrial and auto chip demand, inventory swings, and competition from larger chipmakers all remain factors to monitor.
MYR Group (MYRG) – Jefferies Upgrades the Grid Contractor
MYR Group was upgraded from Hold to Buy on Tuesday by Jefferies analyst Julien Dumoulin-Smith, who trimmed his price target slightly to $370 from $377. MYR builds and maintains power lines, substations, and electrical systems for utilities and commercial customers. In our view, rising electricity demand from data centers and grid upgrades support a strong pipeline of work.
Shares traded near $325.80 during Tuesday's session, up about 7.65%, giving MYR a market capitalization near $5.1 billion. The 52-week range runs from $190.14 to $503.57, and the trailing price-to-earnings multiple is 30.86.
Consensus reads strong buy, with four bullish ratings and one neutral among five tracked firms. The average price target of $402.20 implies roughly 23% upside, while the Jefferies target implies about 14%.
Risks: The panel is small. Goldman Sachs' Ati Modak cut his target to $422 from $469 on August 13 while holding Neutral. Project margins, labor availability, and the timing of utility spending all remain factors to monitor.
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