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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 -0.56% was down as much as 662 points (1.9%), while the benchmark S&P 500 Index /zigman2/quotes/210599714/realtime SPX +0.08% 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
35,911.81
-201.81 -0.56%
Volume: 396.47M
Jan. 14, 2022 5:16p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,662.85
+3.82 +0.08%
Volume: 2.52B
Jan. 14, 2022 5:16p
loading...
/zigman2/quotes/201234787/composite
US : U.S.: NYSE
$ 150.55
+1.31 +0.88%
Volume: 2.06M
Jan. 14, 2022 4:00p
P/E Ratio
47.45
Dividend Yield
0.66%
Market Cap
$43.68 billion
Rev. per Employee
$344,166
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 55.79
-0.76 -1.34%
Volume: 1.55M
Jan. 14, 2022 4:00p
P/E Ratio
415.41
Dividend Yield
0.00%
Market Cap
$6.99 billion
Rev. per Employee
$231,168
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/zigman2/quotes/205281174/composite
US : U.S.: Nasdaq
$ 82.84
-1.92 -2.27%
Volume: 2.66M
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.71 billion
Rev. per Employee
$399,190
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/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 108.52
-1.60 -1.45%
Volume: 3.80M
Jan. 14, 2022 4:00p
P/E Ratio
40.56
Dividend Yield
N/A
Market Cap
$135.55 billion
Rev. per Employee
$1.06M
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 178.42
-2.59 -1.43%
Volume: 14.37M
Jan. 14, 2022 4:00p
P/E Ratio
42.98
Dividend Yield
N/A
Market Cap
$209.63 billion
Rev. per Employee
$935,811
loading...
/zigman2/quotes/207166559/composite
US : U.S.: NYSE
$ 118.04
+0.60 +0.51%
Volume: 3.45M
Jan. 14, 2022 4:04p
P/E Ratio
323.31
Dividend Yield
1.32%
Market Cap
$71.88 billion
Rev. per Employee
$218,081
loading...
/zigman2/quotes/202034776/composite
US : U.S.: Nasdaq
$ 115.88
+0.68 +0.59%
Volume: 513,858
Jan. 14, 2022 4:00p
P/E Ratio
28.84
Dividend Yield
N/A
Market Cap
$13.66 billion
Rev. per Employee
$269,363
loading...
/zigman2/quotes/209322043/composite
US : U.S.: NYSE
$ 325.75
-4.11 -1.25%
Volume: 363,930
Jan. 14, 2022 4:03p
P/E Ratio
35.64
Dividend Yield
0.42%
Market Cap
$15.26 billion
Rev. per Employee
$197,059
loading...
/zigman2/quotes/201755982/composite
US : U.S.: Nasdaq
$ 22.72
-0.24 -1.05%
Volume: 2.56M
Jan. 14, 2022 4:00p
P/E Ratio
27.42
Dividend Yield
0.88%
Market Cap
$13.51 billion
Rev. per Employee
$405,958
loading...
/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 45.82
+0.03 +0.07%
Volume: 6.24M
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$27.12 billion
Rev. per Employee
$225,699
loading...
/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 68.93
-0.11 -0.16%
Volume: 1.19M
Jan. 14, 2022 4:03p
P/E Ratio
52.25
Dividend Yield
1.42%
Market Cap
$10.01 billion
Rev. per Employee
$499,244
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 214.67
-0.33 -0.15%
Volume: 8.84M
Jan. 14, 2022 4:00p
P/E Ratio
39.11
Dividend Yield
0.70%
Market Cap
$452.15 billion
Rev. per Employee
$1.12M
loading...
/zigman2/quotes/204817680/composite
US : U.S.: Nasdaq
$ 109.11
+0.17 +0.16%
Volume: 3.43M
Jan. 14, 2022 4:00p
P/E Ratio
56.64
Dividend Yield
N/A
Market Cap
$72.04 billion
Rev. per Employee
$359,114
loading...
/zigman2/quotes/202463214/composite
US : U.S.: NYSE
$ 35.07
+0.69 +2.01%
Volume: 2.45M
Jan. 14, 2022 4:03p
P/E Ratio
54.21
Dividend Yield
0.23%
Market Cap
$14.98 billion
Rev. per Employee
$250,000
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 372.14
+2.62 +0.71%
Volume: 4.03M
Jan. 14, 2022 4:00p
P/E Ratio
45.76
Dividend Yield
0.53%
Market Cap
$365.65 billion
Rev. per Employee
$847,095
loading...
/zigman2/quotes/201012972/composite
US : U.S.: NYSE
$ 37.81
+1.64 +4.53%
Volume: 17.41M
Jan. 14, 2022 4:00p
P/E Ratio
32.45
Dividend Yield
1.32%
Market Cap
$53.03 billion
Rev. per Employee
$258,558
loading...
/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 85.20
+1.84 +2.21%
Volume: 3.12M
Jan. 14, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
4.60%
Market Cap
$34.83 billion
Rev. per Employee
$9.50M
loading...
/zigman2/quotes/203726728/composite
US : U.S.: NYSE
$ 44.86
+0.29 +0.65%
Volume: 8.67M
Jan. 14, 2022 4:00p
P/E Ratio
61.75
Dividend Yield
N/A
Market Cap
$63.93 billion
Rev. per Employee
$301,816
loading...
/zigman2/quotes/208431372/composite
US : U.S.: NYSE
$ 242.17
+1.62 +0.67%
Volume: 1.33M
Jan. 14, 2022 4:00p
P/E Ratio
10.19
Dividend Yield
1.65%
Market Cap
$80.26 billion
Rev. per Employee
$2.31M
loading...
/zigman2/quotes/202902477/composite
US : U.S.: NYSE
$ 94.07
+1.59 +1.72%
Volume: 840,116
Jan. 14, 2022 4:04p
P/E Ratio
17.40
Dividend Yield
1.53%
Market Cap
$13.20 billion
Rev. per Employee
$346,103
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