×

Wall Street might be too bullish on stocks: Pros

Wall Street remains bullish on stocks heading into the fourth quarter with year-end targets significantly higher than they are now. But not everyone is as sanguine.

"I think earnings need to go right. And I think guidance has to go right. And I think we have to get comfortable with the fact that a stronger dollar is not really going to hurt our earnings, and I'm not convinced of that just yet," TheStreet's CIO, Stephanie Link, said Tuesday on CNBC's "Halftime Report."

Link added that she had picked up shares of Royal Dutch Shell and Marathon Oil.

Read More3 stocks to pocket on strong US dollar: Paul Hickey

"Volatility and earnings are going to be the most important things to watch," she said.

On the Street, Stifel Nicolaus held a 2,300 year-end price target for the S&P 500, about 16.5 percent higher than current levels. Earlier this month, Canaccord Genuity's Tony Dwyer raised his price target to 2,230. Other targets include Goldman Sachs at 2,050, Citigroup at 2,000 and Barclays at 1,975.

Read MoreMarket bear becomes biggest bull on Wall Street

"I think it boils down to the dollar and rates," said Joe Terranova of Virtus Investment Partners.

"I don't see the S&P rising that significantly without financials and energy participating as well."

Read More'Rational exuberance' rules stock market: Ed Yardeni

Ritholtz Wealth Management's Josh Brown noted: "The Nasdaq, S&P and Dow are all lying down right on that 50-day moving average. And I really think that the market seems to be coming to a decision point after ... we've been churning around here. But it seems like something's about to break in one direction or the other."

However, the opportunity might be greater outside the United States, he added, specifically noting Japan's Nikkei and the DXJ exchange-traded fund.

"I think you can make the case that there are cheaper markets with better momentum than just the large-cap United States market," Brown said.