Wall Street analysts’ favorite stocks for 2022 include Alaska Air, Caesars and Lithia Motors
As the coronavirus pandemic has stretched out, investors have continued to pour money into stocks, in part because the alternatives have been dismal. Why bother with 10-year U.S. Treasury bonds that yield a paltry 1.52% when the S&P 500 index has a dividend yield of 1.30% to go along with its growth potential?
Things may change in 2022 as the Federal Reserve winds down its bond purchases that have kept long-term interest rates low. Then again, U.S. stocks have continued to rise since the Fed announced its policy changes on Dec. 15.
With U.S. bond yields already so much higher than they are in the rest of the developed world, foreign investors may continue to buy U.S. bonds and keep yields at historically low levels. And that might make for a continued flow of money into U.S. stocks.
Below are lists of stocks among the benchmark S&P 500 SPX, the S&P 400 Mid Cap Index MID and the S&P Small Cap 600 Index SML that are rated “buy” or the equivalent by at least three out of four of Wall Street analysts polled by FactSet that are expected to rise the most over the next year. Those lists are followed by a summary of analysts’ opinions of all 30 stocks in the Dow Jones Industrial Average DJIA.
Large-cap favorites
Among the S&P 500, 93 stocks are rated a “buy” or the equivalent by at least 75% of analysts working for brokerage firms. Here are the 20 the analysts expect to rise the most over the next year, based on consensus price targets:
| Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
| Alaska Air Group Inc. | ALK | Airlines | $51.94 | $77.71 | 50% | 93% | 0% |
| Caesars Entertainment Inc. | CZR | Casinos/ Gaming | $92.99 | $137.36 | 48% | 94% | 25% |
| Generac Holdings Inc. | GNRC | Electrical Products | $352.96 | $514.11 | 46% | 77% | 55% |
| PayPal Holdings Inc. | PYPL | Data Processing Services | $191.88 | $273.65 | 43% | 84% | -18% |
| T-Mobile US Inc. | TMUS | Wireless Telecommunications | $116.51 | $165.51 | 42% | 81% | -14% |
| News Corp. Class A | NWSA | Publishing: Newspapers | $22.50 | $31.91 | 42% | 88% | 26% |
| Global Payments Inc. | GPN | Data Processing Services | $136.29 | $188.41 | 38% | 85% | -36% |
| Southwest Airlines Co. | LUV | Airlines | $42.72 | $57.32 | 34% | 78% | -8% |
| Schlumberger NV | SLB | Oilfield Services/ Equipment | $29.82 | $39.58 | 33% | 85% | 39% |
| Salesforce.com Inc. | CRM | Software | $255.33 | $331.46 | 30% | 86% | 15% |
| Bath & Body Works Inc. | BBWI | Apparel, Footwear Retail | $69.70 | $90.21 | 29% | 86% | 133% |
| Electronic Arts Inc. | EA | Recreational Products | $134.46 | $173.78 | 29% | 77% | -6% |
| Phillips 66 | PSX | Oil Refining/ Marketing | $72.45 | $93.50 | 29% | 79% | 8% |
| Medtronic PLC | MDT | Medical Specialties | $104.47 | $134.52 | 29% | 85% | -9% |
| Teleflex Inc. | TFX | Medical Specialties | $330.89 | $424.11 | 28% | 75% | -19% |
| General Motors Co. | GM | Motor Vehicles | $58.13 | $74.45 | 28% | 84% | 40% |
| Pioneer Natural Resources Co. | PXD | Oil & Gas Production | $181.28 | $231.61 | 28% | 86% | 66% |
| Synchrony Financial | SYF | Finance, Rental, Leasing | $46.26 | $58.74 | 27% | 77% | 36% |
| Comcast Corp. Class A | CMCSA | Cable, Satellite TV | $50.59 | $64.08 | 27% | 79% | -2% |
| EOG Resources Inc. | EOG | Oil & Gas Production | $89.18 | $112.94 | 27% | 79% | 89% |
| Source: FactSet | |||||||
You can click 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.
Alaska Air Group Inc. ALK tops the list of analysts’ favorite large-cap stocks for 2022. The shares were flat for 2021, as investors were understandably disappointed that the travel industry’s recovery was stalled by new waves of coronavirus infections. Other travel and hospitality-related recovery plays on the list include Caesars Entertainment Inc. CZR and Southwest Airlines Co. LUV.
There are four oil-related stocks on the list, three of which rose significantly during 2021. West Texas Crude oil CL00 was up 59% for 2021 through Dec. 30 based on forward-month contracts, while the S&P 500 energy sector returned 54%.
Other stocks on the list that performed very well during 2021 and are expected to do so again in 2022 include Generac Holdings Inc. GNRC, Bath & Body Works Inc. BBWI and General Motors Co. GM.
Midcap stocks expected to show the biggest gains
The lists of “favorite” stocks are confined to those covered by at least five analysts. Among components of the S&P 400 Mid Cap Index, that leaves 92 stocks with at least 75% “buy” ratings. Here at the 20 expected to rise the most over the next year:
| Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
| Sunrun Inc. | RUN | Alternative Power Generation | $34.01 | $72.61 | 113% | 77% | -51% |
| Digital Turbine Inc. | APPS | Software | $62.84 | $104.00 | 65% | 100% | 11% |
| Jazz Pharmaceuticals Public Ltd. Co. | JAZZ | Pharmaceuticals | $128.26 | $200.89 | 57% | 90% | -22% |
| Lithia Motors Inc. | LAD | Specialty Stores | $297.17 | $460.31 | 55% | 80% | 2% |
| Cerence Inc. | CRNC | Software | $77.59 | $119.42 | 54% | 100% | -23% |
| Callaway Golf Co. | ELY | Recreational Products | $27.63 | $41.50 | 50% | 77% | 15% |
| Ziff Davis Inc. | ZD | Internet Software, Services | $111.37 | $166.88 | 50% | 100% | 31% |
| Victoria’s Secret & Co. | VSCO | Apparel, Footwear Retail | $55.46 | $82.73 | 49% | 82% | N/A |
| LiveRamp Holdings Inc. | RAMP | Data Processing Services | $49.07 | $73.18 | 49% | 82% | -33% |
| PROG Holdings Inc. | PRG | Finance, Rental, Leasing | $44.84 | $66.29 | 48% | 75% | -17% |
| MillerKnoll Inc. | MLKN | Office Equipment, Supplies | $38.98 | $57.60 | 48% | 80% | 17% |
| ChampionX Corp. | CHX | Chemicals: Specialty | $20.01 | $29.00 | 45% | 80% | 31% |
| Darling Ingredients Inc. | DAR | Agricultural Commodities, Milling | $67.87 | $96.79 | 43% | 100% | 18% |
| Axon Enterprise Inc. | AXON | Aerospace & Defense | $156.07 | $222.40 | 43% | 91% | 27% |
| EQT Corp. | EQT | Oil & Gas Production | $22.04 | $31.30 | 42% | 75% | 73% |
| IAA Inc. | IAA | Specialty Stores | $50.43 | $70.88 | 41% | 90% | -22% |
| HealthEquity Inc. | HQY | Investment Managers | $43.86 | $61.50 | 40% | 75% | -37% |
| Azenta Inc. | AZTA | Electronic Production Equipment | $103.18 | $144.60 | 40% | 83% | 53% |
| Vontier Corp | VNT | Transportation | $30.89 | $42.82 | 39% | 77% | -7% |
| SailPoint Technologies Holdings Inc. | SAIL | Software | $48.85 | $67.67 | 39% | 93% | -8% |
| Source: FactSet | |||||||
Small-cap favorites for 2022
Among the S&P Small Cap 600, 101 stocks covered by at least five analysts have at least 75% “buy” ratings. Analysts expect these 20 of the favored stocks to rise the most over the next 12 months:
| Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
| UniQure NV | QURE | Biotechnology | $20.87 | $63.78 | 206% | 89% | -42% |
| Tactile Systems Technology Inc. | TCMD | Medical Specialties | $19.23 | $52.25 | 172% | 100% | -57% |
| Zynex Inc. | ZYXI | Medical Specialties | $10.23 | $22.20 | 117% | 80% | -24% |
| Cara Therapeutics Inc. | CARA | Biotechnology | $12.34 | $26.25 | 113% | 75% | -18% |
| LendingTree Inc. | TREE | Finance, Rental, Leasing | $121.91 | $238.75 | 96% | 100% | -55% |
| Joint Corp | JYNT | Hospital, Nursing Management | $64.62 | $126.00 | 95% | 83% | 146% |
| Talos Energy Inc. | TALO | Oil & Gas Production | $10.07 | $19.00 | 89% | 100% | 22% |
| Renewable Energy Group Inc. | REGI | Chemicals | $42.78 | $79.86 | 87% | 80% | -40% |
| LivePerson Inc. | LPSN | Internet Software, Services | $36.59 | $64.31 | 76% | 79% | -41% |
| BioLife Solutions Inc. | BLFS | Medical Specialties | $37.44 | $63.43 | 69% | 78% | -6% |
| OptimizeRx Corp. | OPRX | Data Processing Services | $61.14 | $103.00 | 68% | 100% | 96% |
| Cutera Inc. | CUTR | Medical Specialties | $39.26 | $63.40 | 61% | 100% | 63% |
| Select Medical Holdings Corp. | SEM | Hospital, Nursing Management | $29.82 | $47.40 | 59% | 80% | 9% |
| Hibbett Inc. | HIBB | Specialty Stores | $72.00 | $112.17 | 56% | 83% | 57% |
| Palomar Holdings Inc. | PLMR | Property/ Casualty Insurance | $63.76 | $99.14 | 55% | 78% | -28% |
| Coherus BioSciences Inc. | CHRS | Biotechnology | $16.74 | $25.43 | 52% | 86% | -4% |
| Celsius Holdings Inc. | CELH | Beverages: Non-Alcoholic | $73.52 | $110.21 | 50% | 75% | 46% |
| James River Group Holdings Ltd. | JRVR | Property/ Casualty Insurance | $28.14 | $41.86 | 49% | 75% | -41% |
| NeoGenomics Inc. | NEO | Medical/ Nursing Services | $34.15 | $50.18 | 47% | 92% | -37% |
| Vericel Corp. | VCEL | Medical Specialties | $40.11 | $58.46 | 46% | 100% | 30% |
| Source: FactSet | |||||||
All 30 components of the Dow Jones Industrial Average
Here they are, ranked by how much analysts expect them to rise over the next year:
| Company | Ticker | Industry | Closing price – Dec. 30 | Consensus price target | Implied 12-month upside potential | Share “buy” ratings | Total return – 2021 through Dec. 30 |
| Salesforce.com Inc. | CRM | Software | $255.33 | $331.46 | 30% | 86% | 15% |
| Boeing Co. | BA | Aerospace & Defense | $202.71 | $259.61 | 28% | 73% | -5% |
| Visa Inc. Class A | V | Finance, Rental, Leasing | $217.87 | $272.62 | 25% | 92% | 0% |
| Walt Disney Co. | DIS | Cable, Satellite TV | $155.93 | $193.29 | 24% | 70% | -14% |
| Merck & Co. Inc. | MRK | Pharmaceuticals | $77.14 | $92.70 | 20% | 60% | 2% |
| Goldman Sachs Group Inc. | GS | Investment Banks, Brokers | $385.52 | $458.97 | 19% | 67% | 49% |
| Walmart Inc. | WMT | Food Retail | $143.17 | $169.92 | 19% | 80% | 1% |
| Dow Inc. | DOW | Chemicals | $56.78 | $66.62 | 17% | 36% | 7% |
| American Express Co. | AXP | Finance, Rental, Leasing | $164.16 | $191.35 | 17% | 46% | 37% |
| Honeywell International Inc. | HON | Industrial Conglomerates | $207.11 | $238.27 | 15% | 48% | -1% |
| Caterpillar Inc. | CAT | Trucks, Construction, Farm Machinery | $206.08 | $235.57 | 14% | 52% | 16% |
| Verizon Communications Inc. | VZ | Telecommunications | $52.25 | $59.57 | 14% | 27% | -7% |
| JPMorgan Chase & Co. | JPM | Major Banks | $158.48 | $179.70 | 13% | 61% | 28% |
| Chevron Corp. | CVX | Integrated Oil | $117.43 | $130.74 | 11% | 67% | 46% |
| Nike Inc. Class B | NKE | Apparel, Footwear | $167.49 | $185.89 | 11% | 77% | 19% |
| Microsoft Corp. | MSFT | Software | $339.32 | $370.51 | 9% | 90% | 54% |
| 3M Co. | MMM | Industrial Conglomerates | $177.64 | $192.06 | 8% | 14% | 5% |
| Coca-Cola Co. | KO | Beverages: Non-Alcoholic | $58.78 | $62.67 | 7% | 61% | 11% |
| Johnson & Johnson | JNJ | Pharmaceuticals | $172.31 | $183.71 | 7% | 50% | 12% |
| Intel Corp. | INTC | Semiconductors | $51.74 | $54.91 | 6% | 27% | 7% |
| International Business Machines Corp. | IBM | Information Technology Services | $133.91 | $142.07 | 6% | 28% | 17% |
| Amgen Inc. | AMGN | Biotechnology | $226.47 | $238.09 | 5% | 31% | 2% |
| Travelers Companies Inc. | TRV | Multi-Line Insurance | $156.81 | $164.06 | 5% | 26% | 14% |
| McDonald’s Corp. | MCD | Restaurants | $267.21 | $276.06 | 3% | 70% | 27% |
| Home Depot Inc. | HD | Home Improvement Chains | $409.94 | $416.83 | 2% | 65% | 58% |
| Walgreens Boots Alliance Inc. | WBA | Drugstore Chains | $51.99 | $52.80 | 2% | 5% | 35% |
| UnitedHealth Group Inc. | UNH | Managed Health Care | $504.43 | $504.20 | 0% | 86% | 46% |
| Apple Inc. | AAPL | Telecommunications Equipment | $178.20 | $175.81 | -1% | 79% | 35% |
| Cisco Systems Inc. | CSCO | Information Technology Services | $63.62 | $62.69 | -1% | 54% | 46% |
| Procter & Gamble Co. | PG | Household, Personal Care | $162.77 | $156.67 | -4% | 54% | 20% |
| Source: FactSet | |||||||
Four Dow components are expected to be flat or down in 2022: UnitedHealth Group Inc. UNH, Apple Inc. AAPL, Cisco Systems Inc. CSCO and Procter & Gamble Co. PG.
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