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These 22 buy-rated stocks have gotten as much as 36% ahead of Wall Street’s price targets. Something has got to give

Deep Dive

Analysts will need to raise their price targets or cut their ratings

Shares of Norwegian Cruise Line Holdings were up 71.5% for the week through June 8. The stock had majority ‘buy’ ratings among sell-side analysts, but the share price was 36% ahead of the analysts’ consensus target.


Bloomberg

Some stocks that are heavily favored by sell-side analysts have gotten ahead of consensus price targets. This means analysts will need to cut their “buy” ratings or push price targets higher.

It’s worth taking a breath and a hard look at portfolios, index fund and ETF holdings if you are focused on the short term. When the benchmark S&P 500 Index
US:SPX
fell to this year’s closing low March 23, it was down 30.7% for 2020. From the March 23 low, the index soared 44.5% through June 8. It was then flat for 2020. Remarkable.

After a swift ride, the S&P 500 was flat for 2020.


FactSet

Hundreds of MarketWatch readers commented about this list of stocks that fell at least 60% during the first quarter, all of which have gained tremendously so far in the second quarter — but were still down big for 2020 (through June 5).

Many of the comments attributed the broad market recovery to actions by the Federal Reserve and investors’ over-enthusiasm as the U.S. economy began to reopen after the COVID-19-led shutdown.

In response to those concerns, here’s another list. Starting again with the S&P 500, there are 22 stocks with majority “buy” or equivalent ratings among analysts polled by FactSet, with consensus price targets that are at least 10% lower than the closing prices June 8:

Company

Ticker

Price change – one week through June 8

Price change – 2020

Share ‘buy’ ratings

Closing price – June 8

Consensus price target

Implied 12-month upside potential

Norwegian Cruise Line Holdings Ltd.

US:NCLH 71.5%

-54.0%

56%

$26.86

$17.10

-36%

Royal Caribbean Cruises Ltd.

US:RCL 44.8%

-43.7%

58%

$75.12

$50.64

-33%

PVH Corp.

US:PVH 52.8%

-33.9%

52%

$69.46

$54.25

-22%

TransDigm Group Inc.

US:TDG 16.5%

-11.6%

57%

$494.94

$393.86

-20%

Schlumberger NV

US:SLB 28.0%

-41.2%

56%

$23.65

$18.89

-20%

Alaska Air Group Inc.

US:ALK 46.9%

-25.8%

71%

$50.24

$42.14

-16%

Discover Financial Services

US:DFS 29.0%

-27.7%

58%

$61.29

$51.60

-16%

Lennar Corporation Class A

US:LEN 3.6%

12.3%

62%

$62.66

$53.80

-14%

Synchrony Financial

US:SYF 31.9%

-25.4%

75%

$26.87

$23.08

-14%

Align Technology Inc.

US:SLGN 18.0%

3.8%

65%

$289.75

$249.57

-14%

Skyworks Solutions Inc.

US:SWKS 13.7%

11.5%

59%

$134.74

$116.08

-14%

Fifth Third Bancorp

US:FITB 27.7%

-19.4%

58%

$24.77

$21.47

-13%

Live Nation Entertainment Inc.

US:LYV 16.1%

-20.1%

64%

$57.09

$49.60

-13%

Wynn Resorts Ltd.

US:WYNN 30.6%

-21.7%

67%

$108.80

$94.65

-13%

Lincoln National Corporation

US:LNC 31.9%

-15.2%

54%

$50.04

$43.58

-13%

Aptiv PLC

US:APTV 16.1%

-7.9%

78%

$87.50

$77.67

-11%

Hess Corporation

US:HES 26.4%

-10.2%

62%

$59.98

$53.70

-10%

Federal Realty Investment Trust

US:FRT 28.3%

-20.3%

53%

$102.54

$92.00

-10%

Adobe Inc.

US:ADBE 2.9%

20.6%

67%

$397.78

$357.41

-10%

Roper Technologies Inc.

US:ROP 2.1%

13.5%

54%

$401.90

$361.55

-10%

Accenture PLC Class A

US:ACN 4.8%

0.3%

63%

$211.28

$190.12

-10%

SVB Financial Group

US:SIVB 9.9%

-6.0%

57%

$236.04

$212.72

-10%

Source: FactSet

Scroll the table to see all the data, including the price targets. Click on the tickers for more about each company, including news and business profiles.

Fourteen of the listed stocks were still down by double-digit percentages for 2020 (through June 8.)

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