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These are the stocks Wall Street analysts heavily favor for 2022 and also expect to rise the most

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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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