Philip van Doorn

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Dec. 28, 2020, 7:32 a.m. EST

20 of analysts’ favorite large-cap stocks for 2021, including GM, Facebook and Salesforce

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By Philip van Doorn

(This is the first in a three-part series listing highly rated stocks that sell-side analysts expect to rise the most over the next 12 months. Part 2 covers small-cap stocks and Part 3 covers mid-caps.)

The stock market always looks ahead. Why else would the S&P 500 Index have returned 15% for 2020 as of Dec. 11 even as COVID-19 cases are setting daily records?

Below is a list of the 20 stocks in the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.17% that are rated “buy” by at least three of four analysts that are expected to rise the most over the next year. Following that list is a summary of analysts’ opinions about the 30 components of the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.40% .

Investors have been pouring money into stocks, in part, because they don’t wish to be left behind when (and if) vaccines lead to a decline in coronavirus infections and a return to a normal economic growth path.

Incredibly low interest rates have also helped push investors to U.S. stocks. The S&P 500 has a weighted aggregate dividend yield of 1.57%, which compares favorably to a yield of only 0.91% for 10-year U.S. Treasury notes /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +1.24% .

Among the S&P 500, 253 stocks have majority “buy” or equivalent ratings among analysts polled by FactSet, and 96 are recommended by at least 75% of analysts.

In case you are wondering, two of this year’s highest-flying stocks aren’t included in the S&P 500. They have also run way ahead of analysts’ price targets:

Here are the 20 S&P 500 stocks with at least 75% “buy” ratings with the most upside potential over the next 12 months implied by analysts’ consensus price targets:

Scroll the table to see all of the data.

It might surprise you to see General Motors Co. /zigman2/quotes/205226835/composite GM -1.14% on the list, but the company is making a tremendous push to release 30 all-electric vehicles by 2025. GM was included on this list of 20 electric-vehicle stocks besides Tesla and Nio that analysts expect to rise the most over the next year .

You might also be surprised to see these tech high-fliers expected to continue their outperformance next year:

The Dow Jones Industrial Average returned 10.3% for 2020 through Dec. 11. Here are the 30 components of the Dow sorted by how well analysts expect the stocks to perform over the next 12 months:

This table includes a full ratings breakdown. Again, you will need to scroll to see all the data.

Don’t miss: 25 bank stocks with dividend yields of at least 3.5% that passed two important tests

/zigman2/quotes/210599714/realtime
US : S&P US
4,178.37
-7.10 -0.17%
Volume: 83.12M
April 19, 2021 9:35a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,064.05
-136.62 -0.40%
Volume: 15.71M
April 19, 2021 9:35a
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.60
+0.02 +1.24%
Volume: 0.00
April 19, 2021 9:35a
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/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 58.04
-0.67 -1.14%
Volume: 130,597
April 19, 2021 9:35a
P/E Ratio
13.58
Dividend Yield
0.00%
Market Cap
$84.45 billion
Rev. per Employee
$790,226
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