- As the market rises to new heights, it’s becoming more difficult for investors to find bargains.
- Credit Suisse has put their analysts’ favorite stocks from across the market into one list.
- Not only are these great stocks, they’ve also been underestimated by the rest of Wall Street.
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Analyst consensus can be a valuable tool for investors.
By pooling the opinions and ideas of some of the smartest minds on Wall Street, analyst consensus allows the average investor to build a case for their own investment ideas. After all, if a large group of professional analysts likes a stock, why shouldn’t you?
But analyst consensus is a double-edged sword. When everyone sees the upside to a stock, the market may push the price too high, and your potential investment can become overvalued.
So, the trick is to find a stock that not only has strong fundamentals and catalysts that will propel its business forward, but also has been overlooked or underestimated by the rest of the market.
That’s what makes a list like the one below an incredibly powerful asset for smart investors. And in a market that continues to climb to record highs regardless of what’s thrown at it, investors could use some help finding attractive bargains.
Credit Suisse recently compiled its US research analysts’ “highest-conviction outperform ideas” from all across the stock market into one list. These are also stocks where “Credit Suisse analysts’ estimates and target prices are above consensus and consensus is not overly bullish.” To measure this, the report compares Credit Suisse analysts’ EPS estimates for the next fiscal year and their target price estimates on a 12-month rolling basis to consensus estimates.
The result is a comprehensive list of excellent investment opportunities that may just perform better than anyone expects. Below, we highlight the analysts’ investment theses, the risks to their outlooks on each stock, and how they arrived at their target prices.
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