This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

40 Stocks Analysts Are Insanely Bullish About

A recent study by Da and Schaumburg, published in the Journal of Financial Markets, shows that Wall Street analysts can successfully determine mispriced stocks in a given industry. This doesn't mean that their buy and sell recommendations will yield abnormal returns. It means that when analysts think a stock is undervalued relative to its peers, that stock will likely outperform them. When analysts think a stock is overvalued, it will most likely underperform its peers.

Given that analysts' price targets contain useful information, we have compiled a list of stocks analysts expect to increase the most over the next 12 months. The data are sourced from Bloomberg and Yahoo! Finance.

A portfolio that is long the stocks analysts are bullish about the most and short the stocks analysts are bearish about the most returns more than 25% annually. Da and Schaumburg's analysis showed that investors beat the market by buying these stocks. Above are the 40 stocks analysts are insanely bullish about.

Some of these stocks are also favored by hedge funds. Larry Robbins' Glenview has Medco Health Solutions (MHS). John Burbank's Passport Capital and Phil Falcone's Harbinger Capital are among the hedge funds with Cliff Natural Resources (CLF - Get Report) holdings.

Citigroup (C - Get Report) is the second most popular stock among hedge funds. Steven Mandel's Lone Pine , Bruce Berkowitz's Fairholme , Lee Ainslie's Maverick Capital , George Soros, Bill Miller's Legg Mason Capital Management , Bill Ackman's Pershing Square, David Tepper's Appaloosa, Daniel Loeb's Third Point , Andreas Halvorsen's Viking Global , Richard Perry's Perry Capital, Joseph DiMenna's Zweig-DiMenna , Leon Cooperman's Omega Advisors, Brevan Howard , and John Paulson's Paulson & Co are among the prominent investors who are bullish about Citigroup.

Microsoft (MSFT - Get Report) was owned by 161 hedge funds at the end of last year. Barry Rosenstein's Jana Partners , David Einhorn's Greenlight Capital , Craig Effron's Scoggin Capital , and Brevan Howard are some of other hedge funds bullish about Microsoft. Whitney Tilson was extremely bulish about Microsoft too. He predicted Microsoft will reach $35 by the end of 2011.

>>To see these stocks in action, visit the 40 Stocks Analysts Are Insanely Bullish About portfolio on Stockpickr.

This was originally published on Insider Monkey .
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MHS $70.30 0.00%
C $46.28 0.00%
CLF $5.27 0.00%
MSFT $49.87 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs