This Day On The Street
Continue to site
ADVERTISEMENT
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

10 Stocks Analysts Are Bullish About

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- 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 when analysts think a stock is undervalued relative to its peers, it will 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 compiled the list of stocks analysts expect to increase the most over the next 12 months. The data is sourced from Bloomberg and Yahoo Finance. A portfolio that is long the stocks analysts are bullish the most and short the stocks analysts are bearish the most returns more than 25% annually.

Da and Schaumburg's analysis showed that investors beat the market by going long the following:

Some of these stocks are also favored by hedge funds. Bank of America had more than $6 Billion in prominent hedge fund investments at the end of December, thanks to John Paulson's and Bruce Berkowitz's enormous investments. Google is the most popular in terms of the number hedge funds with holdings. There were 43 hedge funds with Google positions out of the 175 funds we have been following.

Our four favorite picks among these 10 stocks are Micron, Cliffs Natural, F5 Networks, and Monster Worldwide. David Tepper's Appaloosa had a $142 Million position in MU at the end of December. The stock returned around 30% since then.

1 of 2

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
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $16.44 2.05%
CLF $5.86 2.80%
CSCO $29.17 0.14%
FFIV $124.40 0.83%
GOOG $540.66 0.51%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs