If you were looking to buy a company, what would it be? How about Shake Shack or Instacart? This isn’t a Christmas in July wish list—neither company is up for sale. But both could be appealing for investors looking to cash in on this year’s record first-half merger boom, with $2.6 trillion worth of deals. The key: stocks that attract acquirers but will do fine if they remain independent.
Wolfe Research Chief Investment Strategist Chris Senyek and his team run monthly screens to identify possible targets. One searches for small and midsize companies that have reported sales growth of at least 10% over the past 12 months and are expected to post double-digit top-line gains for the next 12 months. Some well-known consumer names made the list, including Dutch Bros, CAVA Group, Shake Shack, Texas Roadhouse, and Instacart. Fintechs Lemonade, Dave, and Toast also made the cut.