By Philip van Doorn
As the coronavirus pandemic has stretched out, investors have continued to pour money into stocks, in part because the alternatives have been dismal. Why bother with 10-year U.S. Treasury bonds that yield a paltry 1.52% when the S&P 500 index has a dividend yield of 1.30% to go along with its growth potential?
Things may change in 2022 as the Federal Reserve winds down its bond purchases that have kept long-term interest rates low. Then again, U.S. stocks have continued to rise since the Fed announced its policy changes on Dec. 15.
With U.S. bond yields already so much higher than they are in the rest of the developed world, foreign investors may continue to buy U.S. bonds and keep yields at historically low levels. And that might make for a continued flow of money into U.S. stocks.
Below are lists of stocks among the benchmark S&P 500 /zigman2/quotes/210599714/realtime SPX -1.65% , the S&P 400 Mid Cap Index /zigman2/quotes/219506813/composite MID -1.75% and the S&P Small Cap 600 Index /zigman2/quotes/210599868/delayed SML -2.59% that are rated “buy” or the equivalent by at least three out of four of Wall Street analysts polled by FactSet that are expected to rise the most over the next year. Those lists are followed by a summary of analysts’ opinions of all 30 stocks in the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.63% .
Large-cap favorites
Among the S&P 500, 93 stocks are rated a “buy” or the equivalent by at least 75% of analysts working for brokerage firms. Here are the 20 the analysts expect to rise the most over the next year, based on consensus price targets:
Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
Alaska Air Group Inc. | /zigman2/quotes/200972303/composite ALK | Airlines | $51.94 | $77.71 | 50% | 93% | 0% |
Caesars Entertainment Inc. | /zigman2/quotes/205281174/composite CZR | Casinos/ Gaming | $92.99 | $137.36 | 48% | 94% | 25% |
Generac Holdings Inc. | /zigman2/quotes/208144117/composite GNRC | Electrical Products | $352.96 | $514.11 | 46% | 77% | 55% |
PayPal Holdings Inc. | /zigman2/quotes/208054269/composite PYPL | Data Processing Services | $191.88 | $273.65 | 43% | 84% | -18% |
T-Mobile US Inc. | /zigman2/quotes/204659678/composite TMUS | Wireless Telecommunications | $116.51 | $165.51 | 42% | 81% | -14% |
News Corp. Class A | /zigman2/quotes/201755982/composite NWSA | Publishing: Newspapers | $22.50 | $31.91 | 42% | 88% | 26% |
Global Payments Inc. | /zigman2/quotes/201234787/composite GPN | Data Processing Services | $136.29 | $188.41 | 38% | 85% | -36% |
Southwest Airlines Co. | /zigman2/quotes/201071949/composite LUV | Airlines | $42.72 | $57.32 | 34% | 78% | -8% |
Schlumberger NV | /zigman2/quotes/201012972/composite SLB | Oilfield Services/ Equipment | $29.82 | $39.58 | 33% | 85% | 39% |
Salesforce.com Inc. | /zigman2/quotes/200515854/composite CRM | Software | $255.33 | $331.46 | 30% | 86% | 15% |
Bath & Body Works Inc. | /zigman2/quotes/202062875/composite BBWI | Apparel, Footwear Retail | $69.70 | $90.21 | 29% | 86% | 133% |
Electronic Arts Inc. | /zigman2/quotes/206954087/composite EA | Recreational Products | $134.46 | $173.78 | 29% | 77% | -6% |
Phillips 66 | /zigman2/quotes/207448059/composite PSX | Oil Refining/ Marketing | $72.45 | $93.50 | 29% | 79% | 8% |
Medtronic PLC | /zigman2/quotes/206816578/composite MDT | Medical Specialties | $104.47 | $134.52 | 29% | 85% | -9% |
Teleflex Inc. | /zigman2/quotes/209322043/composite TFX | Medical Specialties | $330.89 | $424.11 | 28% | 75% | -19% |
General Motors Co. | /zigman2/quotes/205226835/composite GM | Motor Vehicles | $58.13 | $74.45 | 28% | 84% | 40% |
Pioneer Natural Resources Co. | /zigman2/quotes/206736173/composite PXD | Oil & Gas Production | $181.28 | $231.61 | 28% | 86% | 66% |
Synchrony Financial | /zigman2/quotes/203661733/composite SYF | Finance, Rental, Leasing | $46.26 | $58.74 | 27% | 77% | 36% |
Comcast Corp. Class A | /zigman2/quotes/209472081/composite CMCSA | Cable, Satellite TV | $50.59 | $64.08 | 27% | 79% | -2% |
EOG Resources Inc. | /zigman2/quotes/204634330/composite EOG | Oil & Gas Production | $89.18 | $112.94 | 27% | 79% | 89% |
Source: FactSet |
You can click the tickers for more about each company. Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.
Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK -2.86% tops the list of analysts’ favorite large-cap stocks for 2022. The shares were flat for 2021, as investors were understandably disappointed that the travel industry’s recovery was stalled by new waves of coronavirus infections. Other travel and hospitality-related recovery plays on the list include Caesars Entertainment Inc. /zigman2/quotes/205281174/composite CZR -3.51% and Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV -3.09% .
There are four oil-related stocks on the list, three of which rose significantly during 2021. West Texas Crude oil /zigman2/quotes/209723049/delayed CL00 +0.36% was up 59% for 2021 through Dec. 30 based on forward-month contracts, while the S&P 500 energy sector returned 54%.
Other stocks on the list that performed very well during 2021 and are expected to do so again in 2022 include Generac Holdings Inc. /zigman2/quotes/208144117/composite GNRC -3.62% , Bath & Body Works Inc. /zigman2/quotes/202062875/composite BBWI -2.35% and General Motors Co. /zigman2/quotes/205226835/composite GM -2.99% .
Midcap stocks expected to show the biggest gains
The lists of “favorite” stocks are confined to those covered by at least five analysts. Among components of the S&P 400 Mid Cap Index, that leaves 92 stocks with at least 75% “buy” ratings. Here at the 20 expected to rise the most over the next year:
Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
Sunrun Inc. | /zigman2/quotes/205021014/composite RUN | Alternative Power Generation | $34.01 | $72.61 | 113% | 77% | -51% |
Digital Turbine Inc. | /zigman2/quotes/207634276/composite APPS | Software | $62.84 | $104.00 | 65% | 100% | 11% |
Jazz Pharmaceuticals Public Ltd. Co. | /zigman2/quotes/202658513/composite JAZZ | Pharmaceuticals | $128.26 | $200.89 | 57% | 90% | -22% |
Lithia Motors Inc. | /zigman2/quotes/202974783/composite LAD | Specialty Stores | $297.17 | $460.31 | 55% | 80% | 2% |
Cerence Inc. | /zigman2/quotes/214095346/composite CRNC | Software | $77.59 | $119.42 | 54% | 100% | -23% |
Callaway Golf Co. | Recreational Products | $27.63 | $41.50 | 50% | 77% | 15% | |
Ziff Davis Inc. | /zigman2/quotes/204635076/composite ZD | Internet Software, Services | $111.37 | $166.88 | 50% | 100% | 31% |
Victoria’s Secret & Co. | /zigman2/quotes/228075478/composite VSCO | Apparel, Footwear Retail | $55.46 | $82.73 | 49% | 82% | N/A |
LiveRamp Holdings Inc. | /zigman2/quotes/200307325/composite RAMP | Data Processing Services | $49.07 | $73.18 | 49% | 82% | -33% |
PROG Holdings Inc. | /zigman2/quotes/203979417/composite PRG | Finance, Rental, Leasing | $44.84 | $66.29 | 48% | 75% | -17% |
MillerKnoll Inc. | /zigman2/quotes/205594126/composite MLKN | Office Equipment, Supplies | $38.98 | $57.60 | 48% | 80% | 17% |
ChampionX Corp. | /zigman2/quotes/205349782/composite CHX | Chemicals: Specialty | $20.01 | $29.00 | 45% | 80% | 31% |
Darling Ingredients Inc. | /zigman2/quotes/202670414/composite DAR | Agricultural Commodities, Milling | $67.87 | $96.79 | 43% | 100% | 18% |
Axon Enterprise Inc. | /zigman2/quotes/208329414/composite AXON | Aerospace & Defense | $156.07 | $222.40 | 43% | 91% | 27% |
EQT Corp. | /zigman2/quotes/209305691/composite EQT | Oil & Gas Production | $22.04 | $31.30 | 42% | 75% | 73% |
IAA Inc. | Specialty Stores | $50.43 | $70.88 | 41% | 90% | -22% | |
HealthEquity Inc. | /zigman2/quotes/210521638/composite HQY | Investment Managers | $43.86 | $61.50 | 40% | 75% | -37% |
Azenta Inc. | /zigman2/quotes/200082753/composite AZTA | Electronic Production Equipment | $103.18 | $144.60 | 40% | 83% | 53% |
Vontier Corp | /zigman2/quotes/221146566/composite VNT | Transportation | $30.89 | $42.82 | 39% | 77% | -7% |
SailPoint Technologies Holdings Inc. | Software | $48.85 | $67.67 | 39% | 93% | -8% | |
Source: FactSet |
Small-cap favorites for 2022
Among the S&P Small Cap 600, 101 stocks covered by at least five analysts have at least 75% “buy” ratings. Analysts expect these 20 of the favored stocks to rise the most over the next 12 months:
Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
UniQure NV | /zigman2/quotes/203652599/composite QURE | Biotechnology | $20.87 | $63.78 | 206% | 89% | -42% |
Tactile Systems Technology Inc. | /zigman2/quotes/204312215/composite TCMD | Medical Specialties | $19.23 | $52.25 | 172% | 100% | -57% |
Zynex Inc. | /zigman2/quotes/205307175/composite ZYXI | Medical Specialties | $10.23 | $22.20 | 117% | 80% | -24% |
Cara Therapeutics Inc. | /zigman2/quotes/208720116/composite CARA | Biotechnology | $12.34 | $26.25 | 113% | 75% | -18% |
LendingTree Inc. | /zigman2/quotes/204207971/composite TREE | Finance, Rental, Leasing | $121.91 | $238.75 | 96% | 100% | -55% |
Joint Corp | /zigman2/quotes/203951861/composite JYNT | Hospital, Nursing Management | $64.62 | $126.00 | 95% | 83% | 146% |
Talos Energy Inc. | /zigman2/quotes/209042948/composite TALO | Oil & Gas Production | $10.07 | $19.00 | 89% | 100% | 22% |
Renewable Energy Group Inc. | Chemicals | $42.78 | $79.86 | 87% | 80% | -40% | |
LivePerson Inc. | /zigman2/quotes/203565636/composite LPSN | Internet Software, Services | $36.59 | $64.31 | 76% | 79% | -41% |
BioLife Solutions Inc. | /zigman2/quotes/207858501/composite BLFS | Medical Specialties | $37.44 | $63.43 | 69% | 78% | -6% |
OptimizeRx Corp. | /zigman2/quotes/201436739/composite OPRX | Data Processing Services | $61.14 | $103.00 | 68% | 100% | 96% |
Cutera Inc. | /zigman2/quotes/205259530/composite CUTR | Medical Specialties | $39.26 | $63.40 | 61% | 100% | 63% |
Select Medical Holdings Corp. | /zigman2/quotes/201753136/composite SEM | Hospital, Nursing Management | $29.82 | $47.40 | 59% | 80% | 9% |
Hibbett Inc. | /zigman2/quotes/201173500/composite HIBB | Specialty Stores | $72.00 | $112.17 | 56% | 83% | 57% |
Palomar Holdings Inc. | /zigman2/quotes/211319674/composite PLMR | Property/ Casualty Insurance | $63.76 | $99.14 | 55% | 78% | -28% |
Coherus BioSciences Inc. | /zigman2/quotes/202304465/composite CHRS | Biotechnology | $16.74 | $25.43 | 52% | 86% | -4% |
Celsius Holdings Inc. | /zigman2/quotes/205976348/composite CELH | Beverages: Non-Alcoholic | $73.52 | $110.21 | 50% | 75% | 46% |
James River Group Holdings Ltd. | /zigman2/quotes/202205552/composite JRVR | Property/ Casualty Insurance | $28.14 | $41.86 | 49% | 75% | -41% |
NeoGenomics Inc. | /zigman2/quotes/202492506/composite NEO | Medical/ Nursing Services | $34.15 | $50.18 | 47% | 92% | -37% |
Vericel Corp. | /zigman2/quotes/200874113/composite VCEL | Medical Specialties | $40.11 | $58.46 | 46% | 100% | 30% |
Source: FactSet |
All 30 components of the Dow Jones Industrial Average
Here they are, ranked by how much analysts expect them to rise over the next year:
Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
Salesforce.com Inc. | /zigman2/quotes/200515854/composite CRM | Software | $255.33 | $331.46 | 30% | 86% | 15% |
Boeing Co. | /zigman2/quotes/208579720/composite BA | Aerospace & Defense | $202.71 | $259.61 | 28% | 73% | -5% |
Visa Inc. Class A | /zigman2/quotes/203660239/composite V | Finance, Rental, Leasing | $217.87 | $272.62 | 25% | 92% | 0% |
Walt Disney Co. | /zigman2/quotes/203410047/composite DIS | Cable, Satellite TV | $155.93 | $193.29 | 24% | 70% | -14% |
Merck & Co. Inc. | /zigman2/quotes/209956077/composite MRK | Pharmaceuticals | $77.14 | $92.70 | 20% | 60% | 2% |
Goldman Sachs Group Inc. | /zigman2/quotes/209237603/composite GS | Investment Banks, Brokers | $385.52 | $458.97 | 19% | 67% | 49% |
Walmart Inc. | /zigman2/quotes/207374728/composite WMT | Food Retail | $143.17 | $169.92 | 19% | 80% | 1% |
Dow Inc. | /zigman2/quotes/203121064/composite DOW | Chemicals | $56.78 | $66.62 | 17% | 36% | 7% |
American Express Co. | /zigman2/quotes/203805826/composite AXP | Finance, Rental, Leasing | $164.16 | $191.35 | 17% | 46% | 37% |
Honeywell International Inc. | /zigman2/quotes/205583690/composite HON | Industrial Conglomerates | $207.11 | $238.27 | 15% | 48% | -1% |
Caterpillar Inc. | /zigman2/quotes/203434128/composite CAT | Trucks, Construction, Farm Machinery | $206.08 | $235.57 | 14% | 52% | 16% |
Verizon Communications Inc. | /zigman2/quotes/204980236/composite VZ | Telecommunications | $52.25 | $59.57 | 14% | 27% | -7% |
JPMorgan Chase & Co. | /zigman2/quotes/205971034/composite JPM | Major Banks | $158.48 | $179.70 | 13% | 61% | 28% |
Chevron Corp. | /zigman2/quotes/205871374/composite CVX | Integrated Oil | $117.43 | $130.74 | 11% | 67% | 46% |
Nike Inc. Class B | /zigman2/quotes/203439053/composite NKE | Apparel, Footwear | $167.49 | $185.89 | 11% | 77% | 19% |
Microsoft Corp. | /zigman2/quotes/207732364/composite MSFT | Software | $339.32 | $370.51 | 9% | 90% | 54% |
3M Co. | /zigman2/quotes/205029460/composite MMM | Industrial Conglomerates | $177.64 | $192.06 | 8% | 14% | 5% |
Coca-Cola Co. | /zigman2/quotes/209159848/composite KO | Beverages: Non-Alcoholic | $58.78 | $62.67 | 7% | 61% | 11% |
Johnson & Johnson | /zigman2/quotes/201724570/composite JNJ | Pharmaceuticals | $172.31 | $183.71 | 7% | 50% | 12% |
Intel Corp. | /zigman2/quotes/203649727/composite INTC | Semiconductors | $51.74 | $54.91 | 6% | 27% | 7% |
International Business Machines Corp. | /zigman2/quotes/203856914/composite IBM | Information Technology Services | $133.91 | $142.07 | 6% | 28% | 17% |
Amgen Inc. | /zigman2/quotes/209157011/composite AMGN | Biotechnology | $226.47 | $238.09 | 5% | 31% | 2% |
Travelers Companies Inc. | /zigman2/quotes/206313935/composite TRV | Multi-Line Insurance | $156.81 | $164.06 | 5% | 26% | 14% |
McDonald’s Corp. | /zigman2/quotes/203508018/composite MCD | Restaurants | $267.21 | $276.06 | 3% | 70% | 27% |
Home Depot Inc. | /zigman2/quotes/208081807/composite HD | Home Improvement Chains | $409.94 | $416.83 | 2% | 65% | 58% |
Walgreens Boots Alliance Inc. | /zigman2/quotes/203410933/composite WBA | Drugstore Chains | $51.99 | $52.80 | 2% | 5% | 35% |
UnitedHealth Group Inc. | /zigman2/quotes/210453738/composite UNH | Managed Health Care | $504.43 | $504.20 | 0% | 86% | 46% |
Apple Inc. | /zigman2/quotes/202934861/composite AAPL | Telecommunications Equipment | $178.20 | $175.81 | -1% | 79% | 35% |
Cisco Systems Inc. | /zigman2/quotes/209509471/composite CSCO | Information Technology Services | $63.62 | $62.69 | -1% | 54% | 46% |
Procter & Gamble Co. | /zigman2/quotes/202894679/composite PG | Household, Personal Care | $162.77 | $156.67 | -4% | 54% | 20% |
Source: FactSet |
Four Dow components are expected to be flat or down in 2022: UnitedHealth Group Inc. /zigman2/quotes/210453738/composite UNH -0.95% , Apple Inc. /zigman2/quotes/202934861/composite AAPL -0.91% , Cisco Systems Inc. /zigman2/quotes/209509471/composite CSCO -2.39% and Procter & Gamble Co. /zigman2/quotes/202894679/composite PG -0.06% .
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