Stocks to buy

Does it feel like the stock market is falling apart right now? You’re not alone in feeling that way. We have a war in Europe, inflation running at decade highs, and interest rates on the rise. I wouldn’t blame you for thinking the recent stock market crash is part of something more sinister.

But you know who doesn’t think that? Wall Street analysts.

I’m talking the sell-side analysts employed by JPMorgan, Goldman Sachs, Wells Fargo, and more, who are paid big money exclusively to put out ratings, assign price targets, estimate growth, and overall analyze stocks.

When it comes to stocks, those folks tend to know what they’re talking about.

We’re talking about very smart, well-educated, and well-connected people. That’s how they landed the equities analyst job at a big Wall Street bank, after all. Goldman Sachs isn’t hiring chumps.

They also get paid hundreds of thousands of dollars (if not more) to analyze a normally small group of holdings. This means they’re paid large sums of money to be experts in the specific stocks they cover. And these analysts have huge resources at their disposal to perform that analysis. Think Bloomberg terminals, exclusive information access, special research reports, armies of data scientists, and more.

Further, it’s not unusual for an analyst to have a direct line with the C-Suite, so they’re getting their news straight from the horse’s mouth.

But before I go any further, let me address what’s on many of your minds — biases. Because, yes, I understand Wall Street analysts may sometimes fall victim to their biases. For example, an analyst may cover a stock for which its bank underwrote the IPO. So they would have a loose incentive to pump that asset. But overall, we’re talking about a well-respected, objective group of people whose opinions should always be taken into consideration when making an investment decision.

Love ’em or hate ’em, Wall Street analysts should not be ignored. And, right now, we can’t ignore how bullish they are on single-stock opportunities.

Among all that bullish, they collectively think one particular portfolio of tech stocks could soar more than 70% over the next 12 months.

So if you’re looking for opportunity in the rubble (and who isn’t), this is a great place to start.

Wall Street Analysts Haven’t Been This Bullish in 10 Years

Of all the stock ratings on Wall Street, more than 57% are currently “Buy” ratings. That’s not just a high percentage — it’s the highest percentage of “Buy” ratings since September 2011.

Interesting — but does it mean anything good about the stock market?

To get to the bottom of that question, let’s see what happened the last time analysts were this bullish — September 2011.

A month later, in October 2011, the S&P 500 popped almost 15%. A year later, the index was up nearly 30%, marking one of its best stretches throughout the 2010s.

Source: YCharts

In short, the last time Wall Street analysts were this bullish on stocks, the entire market rallied big over the following 12 months.

Will history repeat itself? We think so.

There’s so much negativity in the market these days, yet unemployment remains low, consumer spending is healthy, consumer balance sheets are strong, and corporate earnings growth is strong.

The stage is set for what we think could be a massive move higher over the next year.

Amidst that stock market rally, a particular group of tech stocks will be the biggest winners. As it turns out, Wall Street’s smartest analysts agree.

Could These Tech Stocks Double in 2022?

As many of you know, we run an innovation-focused investment research advisory by the name of Innovation Investor.

Lately, we’ve been building a selection of the market’s most innovative, disruptive, fastest-growing tech stocks with the highest upside potential. The next Amazon (AMZN), the next Netflix (NFLX), the next Microsoft (MSFT) — companies in their early stages of hypergrowth. These are the kinds of companies I look for to build compounding wealth.

Now we feel that collection is ready to roar higher in a massive market melt-up over the next 12 months.

And we aren’t alone in that thinking.

Using data from YCharts, we were able to crunch the numbers on the consensus analyst price targets for the stocks in that model portfolio. What we found was the following:

  • Pretty much all of the stocks (98%) have a consensus sell-side price target above their current stock price.
  • About half of them (51%) have a consensus price target more than 50% above their current price.
  • Around 20% of them have 100% upside potential, implied by analyst price targets.
  • Across the whole portfolio, the average implied upside from consensus analyst price targets is over 70%.

In other words, Wall Street analysts believe our entire portfolio has the potential to nearly double over the next 12 months.

More than that, 15 stocks in our model portfolio have consensus sell-side analyst price targets that imply 100%-plus upside potential over the next year. One of those stocks is expected to rise more than 5X before the end of the year!

See the chart below. It illustrates the huge upside potential of the portfolio, but — due to being exclusive to our paid subscribers — it has been modified to cover the name, price, and price target information.

The Final Word

Wall Street analysts don’t always get it right. But they are intelligent people, and their opinions should be counted when considering an investment opportunity.

And presently, the analyst community is very bullish on hypergrowth tech stocks. The last time they were this bullish, the stock market proceeded to rally almost 30% over the following 12 months.

That’s a pretty bullish signal.

But, if 30% gains doesn’t entice you, then maybe you should consider our Innovation Investor model portfolio of hypergrowth tech stocks.

Indeed, the average 12-month price target on our model portfolio implies an absurd 70% upside potential.

This data is yet another reason to get super bullish on hypergrowth tech stocks amid the recent market turbulence.

When things get volatile — as they are right now — investors seek certainty. Hypergrowth techs stocks can and will provide that certainty. Why? Because they have durable and robust revenue growth which will persist even in the face of a slowing economy.

In other words, it’s time for hypergrowth tech stocks to shine!

We love the setup for those stocks here and now. A double across the entire portfolio over the next 12 months? We think we’ll even do much better than that!

Plug into that portfolio right now and give yourself a chance to double your money in 12 months.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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