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Dec. 1, 2021, 7:00 a.m. EST

These are Wall Street’s 20 favorite stocks as the Fed’s Powell jolts the market with taper talk

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By Philip van Doorn

Investors unloaded stocks Tuesday after Federal Reserve Chairman Jerome Powell said it’s possible the central bank will remove stimulus faster than originally planned.

Powell, along with Treasury Secretary Janet Yellen, appeared before the Senate Banking Committee. He said it could make sense for the Federal Open Market Committee to wrap up its bond-buying program a few months earlier than anticipated, catching investors off-guard.

That would presumably accelerate the increase of long-term interest rates, setting up “competition” for the attention of income-seeking investors, who have looked to the stock market for yields during a long period of unprecedentedly low interest rates.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.09% was down as much as 662 points (1.9%), while the benchmark S&P 500 Index /zigman2/quotes/210599714/realtime SPX +1.46% was also down as much as 1.9%.

Read: Stock losses deepen as Powell says appropriate to consider faster taper

Over the coming weeks, if the Fed has a clear change in direction, a sustained downturn in stocks could create new buying opportunities for long-term investors.

For those who don’t want to wait, a list of Wall Street’s favorite stocks, based on 12-month price targets, is below.

Stock screen for taper time

The interest-rate landscape may look quite a bit different a year from now. Sell-side analysts (the ones working for brokerage firms) will incorporate their own expectations for interest rates and their effect on companies’ costs and (for the financial sector) interest margins.

Starting with the S&P 500, there are 92 stocks rated “buy” or the equivalent among at least 75% of sell-side analysts polled by FactSet. Here are the 20 among the 92 with the highest upside potential, based on consensus 12-month price targets and share prices at about 12:20 p.m. ET on Nov. 30:

Company Ticker Share “buy” ratings Price – 12:20 p.m ET Nov. 30 Consensus price target Implied 12-month upside potential
Global Payments Inc. /zigman2/quotes/201234787/composite GPN 85% $118.35 $198.79 68%
Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK 93% $47.85 $77.93 63%
Caesars Entertainment Inc. /zigman2/quotes/205281174/composite CZR 93% $87.76 $138.23 58%
T-Mobile US Inc. /zigman2/quotes/204659678/composite TMUS 84% $109.08 $168.08 54%
PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL 83% $181.12 $276.54 53%
Fidelity National Information Services Inc. /zigman2/quotes/207166559/composite FIS 76% $103.37 $156.96 52%
PTC Inc. /zigman2/quotes/202034776/composite PTC 76% $106.52 $160.92 51%
Teleflex Inc. /zigman2/quotes/209322043/composite TFX 75% $301.03 $442.44 47%
News Corp. Class A /zigman2/quotes/201755982/composite NWSA 88% $21.58 $31.63 47%
Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV 87% $43.49 $62.42 44%
Lamb Weston Holdings Inc. /zigman2/quotes/205501174/composite LW 78% $51.92 $73.57 42%
Visa Inc. Class A /zigman2/quotes/203660239/composite V 92% $193.97 $274.19 41%
Fiserv Inc. /zigman2/quotes/204817680/composite FISV 84% $95.32 $133.04 40%
Howmet Aerospace Inc. /zigman2/quotes/202463214/composite HWM 85% $27.88 $38.70 39%
Mastercard Inc. Class A /zigman2/quotes/207581792/composite MA 89% $313.46 $434.66 39%
Schlumberger Ltd. /zigman2/quotes/201012972/composite SLB 85% $28.61 $39.51 38%
Valero Energy Corp. /zigman2/quotes/200735463/composite VLO 81% $66.16 $90.76 37%
Boston Scientific Corp. /zigman2/quotes/203726728/composite BSX 86% $38.37 $51.64 35%
Cigna Corp. /zigman2/quotes/208431372/composite CI 77% $193.85 $260.54 34%
Leidos Holdings Inc. /zigman2/quotes/202902477/composite LDOS 77% $88.67 $116.90 32%

Click on 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.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
34,086.04
+368.95 +1.09%
Volume: 0.00
Jan. 31, 2023 5:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,076.60
+58.83 +1.46%
Volume: 0.00
Jan. 31, 2023 5:00p
loading...
/zigman2/quotes/201234787/composite
US : U.S.: NYSE
$ 112.72
+2.43 +2.20%
Volume: 1.26M
Jan. 31, 2023 4:00p
P/E Ratio
503.21
Dividend Yield
0.89%
Market Cap
$29.82 billion
Rev. per Employee
$356,660
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 51.34
+1.18 +2.35%
Volume: 1.37M
Jan. 31, 2023 4:00p
P/E Ratio
118.24
Dividend Yield
0.00%
Market Cap
$6.36 billion
Rev. per Employee
$422,459
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/zigman2/quotes/205281174/composite
US : U.S.: Nasdaq
$ 52.06
+1.44 +2.84%
Volume: 2.92M
Jan. 31, 2023 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.86 billion
Rev. per Employee
$216,143
loading...
/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 149.31
+2.33 +1.59%
Volume: 6.07M
Jan. 31, 2023 4:00p
P/E Ratio
122.21
Dividend Yield
N/A
Market Cap
$182.87 billion
Rev. per Employee
$1.07M
loading...
/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 81.49
+1.85 +2.32%
Volume: 15.73M
Jan. 31, 2023 4:00p
P/E Ratio
41.44
Dividend Yield
N/A
Market Cap
$90.79 billion
Rev. per Employee
$865,405
loading...
/zigman2/quotes/207166559/composite
US : U.S.: NYSE
$ 75.04
+0.65 +0.87%
Volume: 5.18M
Jan. 31, 2023 4:03p
P/E Ratio
48.95
Dividend Yield
2.51%
Market Cap
$44.14 billion
Rev. per Employee
$222,877
loading...
/zigman2/quotes/202034776/composite
US : U.S.: Nasdaq
$ 134.88
+1.60 +1.20%
Volume: 700,385
Jan. 31, 2023 4:00p
P/E Ratio
50.94
Dividend Yield
N/A
Market Cap
$15.75 billion
Rev. per Employee
$297,301
loading...
/zigman2/quotes/209322043/composite
US : U.S.: NYSE
$ 243.42
+2.38 +0.99%
Volume: 180,245
Jan. 31, 2023 4:04p
P/E Ratio
27.94
Dividend Yield
0.56%
Market Cap
$11.31 billion
Rev. per Employee
$199,640
loading...
/zigman2/quotes/201755982/composite
US : U.S.: Nasdaq
$ 20.26
+0.09 +0.45%
Volume: 2.80M
Jan. 31, 2023 4:00p
P/E Ratio
25.68
Dividend Yield
0.99%
Market Cap
$11.65 billion
Rev. per Employee
$406,314
loading...
/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 35.77
+0.30 +0.85%
Volume: 5.60M
Jan. 31, 2023 4:00p
P/E Ratio
45.26
Dividend Yield
2.01%
Market Cap
$21.06 billion
Rev. per Employee
$432,196
loading...
/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 99.89
+1.34 +1.36%
Volume: 1.70M
Jan. 31, 2023 4:04p
P/E Ratio
30.55
Dividend Yield
1.12%
Market Cap
$14.18 billion
Rev. per Employee
$563,775
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 230.21
+1.11 +0.48%
Volume: 11.29M
Jan. 31, 2023 4:00p
P/E Ratio
32.85
Dividend Yield
0.78%
Market Cap
$471.82 billion
Rev. per Employee
$1.14M
loading...
/zigman2/quotes/204817680/composite
US : U.S.: Nasdaq
$ 106.68
+0.93 +0.88%
Volume: 2.43M
Jan. 31, 2023 4:00p
P/E Ratio
33.50
Dividend Yield
N/A
Market Cap
$67.15 billion
Rev. per Employee
$394,614
loading...
/zigman2/quotes/202463214/composite
US : U.S.: NYSE
$ 40.69
+0.50 +1.24%
Volume: 1.82M
Jan. 31, 2023 4:03p
P/E Ratio
39.95
Dividend Yield
0.39%
Market Cap
$16.63 billion
Rev. per Employee
$273,116
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 370.60
-0.52 -0.14%
Volume: 3.14M
Jan. 31, 2023 4:00p
P/E Ratio
36.25
Dividend Yield
0.62%
Market Cap
$356.94 billion
Rev. per Employee
$926,542
loading...
/zigman2/quotes/201012972/composite
US : U.S.: NYSE
$ 56.98
+0.64 +1.14%
Volume: 5.95M
Jan. 31, 2023 4:00p
P/E Ratio
23.80
Dividend Yield
1.76%
Market Cap
$79.89 billion
Rev. per Employee
$305,337
loading...
/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 140.03
-0.16 -0.11%
Volume: 5.43M
Jan. 31, 2023 4:00p
P/E Ratio
4.81
Dividend Yield
2.80%
Market Cap
$54.05 billion
Rev. per Employee
$17.97M
loading...
/zigman2/quotes/203726728/composite
US : U.S.: NYSE
$ 46.25
+0.44 +0.96%
Volume: 10.90M
Jan. 31, 2023 4:00p
P/E Ratio
111.42
Dividend Yield
N/A
Market Cap
$65.61 billion
Rev. per Employee
$306,512
loading...
/zigman2/quotes/208431372/composite
US : U.S.: NYSE
$ 316.67
+6.31 +2.03%
Volume: 1.58M
Jan. 31, 2023 4:00p
P/E Ratio
15.13
Dividend Yield
1.41%
Market Cap
$94.89 billion
Rev. per Employee
$2.44M
loading...
/zigman2/quotes/202902477/composite
US : U.S.: NYSE
$ 98.84
+1.53 +1.57%
Volume: 1.20M
Jan. 31, 2023 4:03p
P/E Ratio
20.22
Dividend Yield
1.46%
Market Cap
$13.30 billion
Rev. per Employee
$330,000
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