Investing.com -- Mizuho has updated its U.S. Top Picks list for June, adding CVS Health (NYSE:CVS), PayPal (NASDAQ:PYPL) and Oracle (NYSE:ORCL) to its highest-conviction ideas, alongside ConocoPhillips (NYSE:COP), First Solar (NASDAQ:FSLR), Insmed (NASDAQ:INSM), Corteva (NYSE:CTVA), and Carrier Global (NYSE:CARR). 

The list now highlights 24 stocks across six sectors, reflecting what Mizuho calls “our analysts’ most favored and some of their most differentiated ideas.”

In a note to clients, Mizuho said the Top Picks list is not intended as a portfolio, but rather a collection of individual analysts’ “#1 Outperform-rated names” based on a 12-month outlook. 

The list is updated monthly and includes comparisons between Mizuho’s forecasts and consensus estimates to assess conviction.

CVS Health was added due to what Mizuho sees as roughly $3.00 in “embedded EPS power,” driven largely by expected margin recovery in the company’s health insurance segment. 

“While the company struggled in 2024 due to elevated utilization... we feel confident in CVS’s embedded earnings power if it executes its recovery plans,” the firm wrote. Mizuho also cited confidence in CVS’s integrated healthcare strategy and improving margins.

PayPal was highlighted for its potential to accelerate branded checkout volume growth. 

Mizuho expects total payment volume growth to reach 8-10% in the coming years, helped by “the rollout of the new checkout experience,” Buy Now, Pay Later integration, and increasing momentum for Pay with Venmo.

“Management feels it is only beginning to scratch the surface of the flywheel,” analysts said.

Oracle earned a spot as Mizuho sees the company as a “double-digit growth company.” The firm pointed to Oracle’s $104 billion FY29 revenue target and strength in cloud infrastructure. “Many investors continue to under-appreciate the attractiveness of Oracle’s OCI offering,” Mizuho wrote, noting it is about “33% cheaper than AWS for basic compute services.”

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