Amazon Prime shopping days have arrived, bringing with them a slew of irresistible deals. But it’s not just shoppers who are excited about the discounts – investors are eager to get their hands on some good deals too. That’s why we’ve done some extensive research in the stock market and discovered 15 stocks that are primed to go higher.
Identifying Stocks with Tremendous Upside
To compile this list, we began by analyzing the S&P 500 and pinpointing stocks with the highest upside potential based on analyst price targets. However, it wasn’t sufficient for us to solely focus on stocks with significant potential – we wanted to make sure these stocks were also well-regarded by analysts. After all, stocks with tremendous upside that are universally panned by experts often carry hidden risks. Our goal was to uncover stocks that not only had great potential but also had garnered positive attention from analysts.
Calculating Upside and Popularity
Determining a stock’s upside is a straightforward process – we examined analysts’ price targets and compared them to the current trading prices of the stocks. Additionally, we analyzed the popularity of these stocks by considering the number of Buy ratings they received in relation to their overall number of ratings. On average, an S&P 500 stock has a Buy-rating ratio of around 55%. To make it onto our curated list, the stocks needed to have a higher ratio than this benchmark.
The Top 15 Stocks Poised for Success
After extensive analysis, we have identified the top 15 stocks that not only exhibit great potential but are also highly regarded by experts. These stocks are as follows:
- Warner Bros. Discovery (WBD) – Media and Entertainment Firm
- Moderna (MRNA) – Drugmaker
- Enphase Energy (ENPH) – Solar-Technology Provider
- SolarEdge Technologies (SEDG) – Solar-Technology Provider
- Caesars Entertainment (CZR) – Casino Operator
- MGM Resorts International (MGM) – Casino Operator
- CVS Health (CVS) – Drugstore Chain
- International Flavors & Fragrances (IFF) – Food and Cosmetic Additive Giant
- Marathon Oil (MRO) – Refiner
- APA (APA) – Energy Producer
- Humana (HUM) – Health-Insurance Provider
- AES (AES) – Utility
- Newmont (NEM) – Gold Miner
- PayPal Holdings (PYPL)
- Walt Disney (DIS)
These 15 stocks are not only well-positioned for growth but have also garnered positive attention from analysts, making them potentially lucrative investments.
Tapping into Analyst Insights: A Strategy Worth Considering
The world of investing is an ever-changing landscape, with countless opportunities and risks. One strategy that has caught the attention of investors is following the recommendations of analysts. While it may seem counterintuitive to trust the predictions of experts, the numbers don’t lie.
An analysis of the past year reveals some interesting trends. Although not all companies have been profitable, the stocks in question are trading at an average of approximately 17 times their estimated earnings for the next 12 months, which is at a discount compared to the market average of 19 times.
Despite a disappointing average return of -13% over the past year, analysts remain undeterred. In fact, the average rating for these stocks is a “Buy,” with price targets indicating an upside potential of over 40%. This raises an important question: does this strategy actually work?
While there are no guarantees in investing, following this strategy in the past year has been rewarding. The top 15 stocks that were identified as having the most potential and boasted better-than-average buy ratings experienced an impressive average return of around 45% over the last 12 months. On the other hand, the 15 stocks with higher-than-average buy ratings but lower upside potential only yielded a modest return of approximately 9% during the same period.
Interestingly, all the stocks that received better-than-average buy ratings a year ago – a substantial total of 285 stocks – delivered an average return of 15% over the last year, in line with the overall market performance.
Undoubtedly, analysts seem to have a knack for picking winners. Only time will tell whether this trend will continue into the future. It’s crucial to remember that a stock screen is merely a starting point – a way to narrow down the vast array of investment possibilities. The real work begins when each individual idea is meticulously evaluated and scrutinized.
In conclusion, tapping into the insights of analysts can be a valuable tool for investors seeking to make informed decisions. While no strategy is foolproof, the track record of analysts suggests that it’s an avenue worth exploring. So, before diving headfirst into the market, consider consulting the experts and their recommendations.
