With the S&P 500 up more than 19% already this year, investors are scrambling to find the next big winners. According to Wall Street analysts, these stocks could have the most room to run.
CNBC used FactSet to screen the stocks with the highest average 12-month price targets by analysts. To find the names with the highest conviction from Wall Street, CNBC winnowed down the pool by selecting the stocks whose forecast has only gone up in the past three months. Stocks that have fallen in the past three months were also excluded.
To be sure, consensus analyst opinion doesn't always work and some investors even use it as a contrarian indicator. However, the list gives you an idea of the stocks analysts are most bullish about in meetings with clients.
The company that sparked my interests on the list was Royal Caribbean Cruises because it's on my long term bear list.
This consumer confidence indicator provides an indication of future developments of households’ consumption and saving, based upon answers regarding their expected financial situation, their sentiment about the general economic situation, unemployment and capability of savings.
If consumer confidence is turning for the worst, discretionary spending will decline. If discretionary spending declines, so will Royal Caribbean Cruises' revenue. If Royal Caribbean Cruises' revenue decline, so will its stock price.
The chart suggests if price can close below $112, price will go to $83 over time.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.