Now’s when many investors lament the top stocks they didn’t own. But you have a second shot at some if analysts are right.
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Eight S&P 500 stocks, including information technology plays Micron (MU) and Adobe (ADBE) plus industrial FedEx (FDX), soared in 2020 and are likely to do the same in 2021, analysts say. That’s according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
All these stocks are seen jumping more than 15% in the next 12 months, analysts say. That’s impressive. Why? All of them are already up more than 30% in the past twelve months, outpacing the S&P 500’s 16.4% rise in that time.
Emboldened by the S&P 500’s strong start in 2021, investors are looking for their spots. Stocks are up in five of the past six days, says Wilshire Associates. And that’s already added a trillion dollars in wealth to portfolios this year.
Looking For A Better 2021 For The S&P 500
Analysts and investors are already looking forward to higher stock prices in 2021. But given how much stocks are up, some wonder how much upside is left. Wells Fargo Investment Institute is calling for the S&P 500 to hit 3,900 by the end of 2021. That’s up just 2.6% from Tuesday’s close.
And yet, S&P 500 profits are widely expected to soar in 2021. Wells Fargo forecast S&P 500 profit to expand 30% in 2021 vs. 2020.
But not all S&P 500 stocks are seen winning to the same degree. Clearly, some beat-up stocks might get a lift. But which S&P 500 stocks can keep their winning momentum going from last year? Analysts have their favorites.
FedEx: The S&P 500 Industrial Sets The Pace
By most accounts, FedEx delivered for investors in 2020. The stock is up 59% in the past 12 months. And thanks to booming at-home shopping, FedEx’s profit is seen jumping more than 80% in the current fiscal year ended in May.
But analysts think there’s plenty more where that came from. They’re calling for FedEx stock to hit more than 325 a share in 12 months. If they’re right, that means there’s still nearly 31% upside.
Still Big Upside In Top Rated S&P 500 Stocks
If there’s a stock you’d wish you’d owned, Amazon is one of them. Not only is it one of the most valuable companies in the world, it’s up 66% the past year and sports an IBD Composite Rating of 85. Even so, analysts still see nearly 23% upside in the next 12 months.
Computer chipmaker Micron has an even higher Composite Rating of 94. The stock is up 40% in the past 12 months. Analysts, though, still think it can go 19% higher still in the next 12 months. Profit at Micron is seen jumping 45% this fiscal year ended in August.
And then there’s software maker Adobe. The stock is up nearly 40% the past 12 months. And it’s a member of Leaderboard, too. And yet, analysts think there’s upside still. The Street estimate calls for Adobe to be a 553.79 stock in 12 months. That’s an implied gain of 17%.
Analysts aren’t always right (they’re often wrong). But these S&P 500 stocks are already market-beaters. Analysts are only telling you there’s more where that came from.
Analysts Have High Hopes In 2021 For Some Top Stocks
S&P 500 stocks that analysts think have more than 15% upside in 12 months, and that also rose more than 30% in 2020
| Company | Ticker | 1-Year Stock % Ch. | Upside To 12-Month Price Target | Composite Rating | Sector |
|---|---|---|---|---|---|
| FedEx | (FDX) | 59.0% | 30.7% | 73 | Industrials |
| Regeneron Pharmaceuticals | (REGN) | 32.6% | 30.5% | 66 | Health Care |
| Dexcom | (DXCM) | 51.8% | 24.2% | 75 | Health Care |
| Amazon.com | (AMZN) | 65.7% | 22.6% | 85 | Consumer Discretionary |
| Newmont | (NEM) | 47.8% | 21.7% | 65 | Materials |
| Micron Technology | (MU) | 40.2% | 19.1% | 94 | Information Technology |
| Adobe | (ADBE) | 38.8% | 17.4% | 71 | Information Technology |
| T-Mobile US | (TMUS) | 62.9% | 15.3% | 82 | Communication Services |
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
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