The S & P 500 has continued its ascent, already exceeding many Wall Street expectations for its annual gain even though we’re only half way into the year. On Monday, the broad index closed at 4,338.93. That’s about 2.6% higher than the average year-end estimate of 4,227 and 2.1% above the median target, according to data compiled by CNBC. Some have debated whether a new bull market has been entered. The S & P 500 is more than 20% off its October low, which is a simplistic threshold for determining if a new bull market has started, though many investors say one can’t be called until there’s a new high. .SPX 5Y mountain The S & P 500 And this is happening just shy of the half-year point for 2023, meaning there’s lots of time left for future market moves. To be sure, the index could go down if the second half analysts’ consensus estimates are correct. But the index could also move higher, especially if investor optimism around themes such as artificial intelligence and the potential for a better interest rate environment remains strong. Given the potential for further upside, CNBC Pro compiled names whose individual gains could help the market move another leg higher. These stocks are members of the S & P 500, have buy ratings from more than 65% of analysts and an average price target implying shares could rally more than 30% in the next year. Here’s which names made the list, with all data compiled through FactSet as of Tuesday morning: T-Mobile has made the list, with the average analyst expecting a nearly 35% rally. That would mark a turnaround after the telecommunications stock has underperformed the broader market and shed more than 6% so far this year. About 86% of analysts rate the stock a buy-equivalent. Wolfe Research recently joined that group, with analyst Peter Supino upgrading shares to outperform from peer perform last week after downgrading them in January. “At today’s price and after ~21% YTD underperformance, investors need neither estimate nor multiple upside to outperform,” he said in a note to clients. Disney is another well-known stock on the list. While the media-and-entertainment giant has been caught in the middle of a politically charged culture war in recent months, Wall Street has largely been able to cut through the noise. About seven out of even 10 analysts rate the stock a buy, with the average price target implying an upside slightly greater than 30% in the next 12 months. Shares have risen around 7% this year, which is a relatively modest advance compared with the S & P 500’s 13% gain. But that’s still a positive change of course from 2022, when the stock dropped nearly 44% as investors grew concerned over how the company would fare in a period of economic tightening. AES is similar to T-Mobile, with Wall Street expecting a rally after a recent selloff. Analysts forecasted a nearly 45% jump despite the stock tumbling more than 29% this year. That puts the power-and-utilities company on track for another bumpy year. A volatile 2022 ultimately ended with shares up 18%, when it was part of the crop of energy stocks that bucked the broader market downturn. Three-fourths of analysts rate the stock a buy. Last week, the company said it had acquired the 2 GW Bellefield project , which is the largest permitted solar-and-storage project in the U.S. While the majority of stocks on the list were due for a post-sell-off bounce, animal health stock Zoetis was one name that is already performing well and on track to extend gains. Analysts expect shares to jump more than 31% in the next year, which would only add to wins. The stock is already up nearly 13% this year, which is in-line with the year-to-date gains of the S & P 500. About two-thirds of analysts rate Zoetis a buy. — CNBC’s Fred Imbert contributed to this report
The S&P 500 is breaking out. Here are Wall Street's favorite names to lead the next leg higher