Wall Street believes Home Depot, Pfizer and Cisco Systems are among the 10 stocks which will likely lead the Dow to 23,000, according to CNBC analysis of FactSet data.
CNBC used FactSet to find the Dow components Wall Street believes will lead the next leg higher, based on the projected return between the current price and the average 12-month target of analysts.
Here are the 10 Dow stocks with the greatest potential for gains, according to Wall Street predictions:
- Home Depot (HD)
- Pfizer (PFE)
- Cisco Systems (CSCO)
- Apple (AAPL)
- McDonald's (MCD)
- General Electric (GE)
- Visa (V)
- Microsoft (MSFT)
- Intel (INTC)
- International Business Machines (IBM)
Experts think Home Depot and Pfizer have the greatest potential. Based on their average price targets, analysts expect all the Dow stocks to rise except for 3M.
As for the overall market, many cynical pundits are predicting a correction is on the horizon.
Economic guru Larry Kudlow advises savvy investors to expect a slight dip in the current bull market and be prepared to buy more shares if stocks fall up to 10 percent.
“Stocks, for the long run, are a great bet in America, a great bet in our free-market capitalism. You don’t want to sell now,” the CNBC senior contributor told "Big John & Ramblin' Ray" on WLS (890AM) in Chicago.
“I probably would love to see a 5-to-10 percent correction in the not-too-distant future,” the Newsmax Finance Insider explained, “because that would be an even better buying opportunity.”
A "correction" is commonly defined as a temporary drop of at least 10 percent adjust for an overvaluation.
Elsewhere, other experts agree that Wall Street has shrugged off a recent failure by a Republican-controlled Congress to overhaul healthcare as well as doubts about how easily President Donald Trump will be able to fulfill promises to cut taxes and increase infrastructure spending.
"There was a time earlier this year that the market was politically driven. I think the market is just numb to it at this point,” Matthew Peterson, Chief Wealth Strategist for LPL Financial at Charlotte, North Carolina, explained to Reuters.
Meanwhile, Newsmax Finance Insider Stephen Moore contends that Trump will never get his due credit for the economic boom.
"The July jobs report released Friday was a blockbuster — solid job gains across the economy, the lowest unemployment rate in more than a decade and a nice bump in wages," wrote Moore, who has been an economic adviser to Trump.
(Newsmax wires services contributed to this report).
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