- As the market reaches new highs, it becomes more and more difficult for investors to find good deals.
- Credit Suisse has bundled its analysts’ favorite stocks across the market into one list.
- Not only are these good deeds, but 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 Wall Street’s smartest minds, Analyst Consensus allows the average investor to present their own investment ideas. After all, if a large group of professional analysts love a stock, why not you?
But analyst consensus is a double-edged sword. When everyone sees the benefits of a stock, the market can 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, but that has also been overlooked or underestimated by the rest of the market.
This is what makes a list like the one below an incredibly powerful asset for savvy investors. And in a market that continues to climb to record heights no matter what is on offer, investors might need help finding great deals.
Credit Suisse recently compiled the “most compelling outperformance ideas” of its US research analysts into one list. These are also stocks for which “the estimates and target prices of Credit Suisse analysts are above the consensus and the consensus is not too optimistic.” To measure this, the report compares Credit Suisse analysts’ EPS estimates for the next fiscal year and their 12-month rolling target price estimates to consensus estimates.
The result is a comprehensive list of great investment opportunities that might work out better than anyone expects. Below, we highlight analysts’ investment theses, the risks to their outlook on each stock, and how they arrived at their target prices.