Analysts on Wall Street continue to pound the table on certain turnaround stocks likely to move higher through the year’s second half. With the quarter closing, analysts up and down the street are busy revising their forecasts and ratings on stocks to determine the securities likely to shine through summer into autumn.
While not an exact science, analyst ratings can provide a view of a stock’s sentiment and a sense of where the share price is heading. This can be helpful as investors determine where to allocate capital and which stocks to buy and sell. Right now, analysts and traders are praising certain turnaround stocks as great investments.
Here are three turnaround stocks for massive gains.
Disney (DIS)
Investment bank Goldman Sachs (NYSE:GS) just initiated coverage of Disney (NYSE:DIS) with a “buy” rating and a price target of $125 per share. This implies 23% upside from current levels. Analysts at Goldman Sachs seem to feel that DIS stock has been punished enough. They like that the Mouse House has a hit theatrically released movie with “Inside Out 2” and cite the company’s competitive moats on both the media side of its business and its popular theme parks.
Disney can use Goldman Sachs’s positive outlook. DIS stock has been in the doldrums for years. The company’s share price has declined 27% in the last five years. The stock bounced higher in this year’s first quarter after the company reinstated its quarterly dividend payment but has been treading water since April. Goldman Sachs sees the situation at Disney improving as the company invests heavily in enhancing its theme parks and making them more attractive to tourists.
Nvidia (NVDA)
There’s a lot of hand-wringing about Nvidia (NASDAQ:NVDA) stock after it decreased 13% in three trading days and entered correction territory. (A stock is considered to be in a correction if it declines 10% from recent highs.) Some in the financial press are screaming that a bubble is bursting in stocks associated with artificial intelligence and warning that the semiconductor industry is going down like the Titanic.
Wall Street analysts are urging investors to pump the breaks. They stress that the decline is due to profit-taking and option contract expirations as we approach the end of the second quarter on June 30. Several analysts have issued notes to clients saying that Nvidia stock will likely continue rising following the current volatility. At Jeffries (NYSE:JEF), analysts raised their target price on Nvidia stock to $150 from $135 and reiterated a “buy” rating. Bank of America (NYSE:BAC) has added Nvidia stock to its “best ideas.”
NVDA stock remained at 158% this year.
Apple (AAPL)
Wall Street analysts continue to cheer on the recovery in tech giant Apple (NASDAQ:AAPL). Its shares have been rallying since the company unveiled its AI strategy earlier in June. Melius Research has raised its price target on AAPL stock to $260 a share from $227, saying the company is entering a new iPhone era. At the same time, JPMorgan Chase (NYSE:JPM) reiterated its “buy” rating on the stock.
Analysts remain bullish on Apple’s AI strategy, which the company calls “Apple Intelligence.” They think it will lead consumers to upgrade their iPhones to get the AI enhancements and benefits. These include a revamped Siri digital assistant and the addition of OpenAI’s ChatGPT technology on future iPhones. AAPL stock has rallied 10% since its AI strategy became public. Year to date, the share price is up 13%.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
