What's better than owning an S&P 500 stock that's up big over the past six months? One likely to jump in the future.
And that's what analysts seem to indicate with seven promising S&P 500 stocks including CVS Health, Micron Technology and Newmont, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
These seven stocks are already up 20% or more this year. And they're seen jumping 10% or more in the next 12 months, analysts say.
Investors are again looking for gains after much of the Trump tariff scare is over, for now. "This is, quite clear, an equity market that wants to rally; a market that is happy to look through the to-and-fro on tariffs, so long as the direction of travel remains towards deals being done; a market that has found relief in resilient earnings and macro data, despite the huge degree of prevailing economic uncertainty," said Michael Brown, senior research strategist at Pepperstone.
S&P 500 Is Healing
Following a dismal April, stocks have repaired much of the damage. The S&P 500 is up 1.2% this year, after being down nearly 20% from the high.
Meanwhile, 49 stocks in the S&P 500 are up 20% or more this year. Most of them are overextended, analysts say. But that makes the handful of stocks that analysts are bullish on more interesting.
For instance, shares of CVS Health are up nearly 41% already this year. Even so, analysts think shares of the drugstore chain will rise an additional 26% in 12 months' time. The chart, though, calls for patience. CVS' RS Rating is just 63, and its EPS Rating is just 64.
The stock, though, is trying to set up for a buy point that's just 6% away from the current price. But CVS isn't the only winner analysts like.
Chips And Gold
Micron, a maker of memory chips, has seen its shares surge more than 26% this year. Investors are bullish on demand for chips in systems used for AI. And for that reason, they think Micron will gain 17% in the next 12 months.
Analysts think Micron's earnings will soar 440% this year and 58% next year. But despite the stock's run this year, the RS Rating is just 59. The stock is also nearly 20% away from a buy point.
Gold miner Newmont is another stock analysts are bullish on. Shares are up more than 46% this year on robust demand for gold amid skyrocketing U.S. deficits. Still, analysts think there's still room for the stock to rise an additional 16.6% in 12 months.
The chart looks strong, too. Newmont's RS Rating is 90 and its EPS Rating is 89. Analysts think profit will rise 26% this year.
So while some S&P 500 stocks have notched big gains, there's likely more where that came from.
Analysts Are Most Bullish On These S&P 500 Winners
| Company | Ticker | YTD change | Upside to analysts' 12-month target |
|---|---|---|---|
| CVS Health | CVS | 40.5% | 26.0% |
| Micron Technology | MU | 26.3% | 16.7% |
| Newmont | NEM | 46.5% | 16.6% |
| Uber Technologies | UBER | 40.4% | 13.3% |
| Tapestry | TPR | 21.3% | 11.7% |
| Cencora | COR | 28.4% | 11.4% |
| Walgreens Boots Alliance | WBA | 20.6% | 10.3% |
