Top 5 stocks of the week and how to trade them

Published Fri, Sep 11 20153:22 PM EDT

CNBC Pro highlights the top-performing stocks this week and analyzes whether the good times will continue. (The price change was calculated as of midday Friday so it is subject to change. If one stock led multiple indices, we profiled the second best, too.) Best in the Dow: UnitedHealth (UNH), up 5 percent this week Source: FactSet Shares of the managed-care provider led the Dow higher this week, on the back of positive sales expectations driven by the improving health benefits business and continued strength from Optum . "We expect accelerating earnings in 2015 and beyond, coupled with a return to fundamentals as investor focus shifts away from the M & A cycle, will drive shares higher," Morgan Stanley analyst Andrew Schenker wrote in a note to clients Wednesday, rating the stock "overweight." One of the reasons for the bullish call relates to the recent acquisition of Catamaran for $12.8 billion, a move that's expected to bulk up UNH's pharmacy business, and position the firm to take advantage of the evolving retail market. "We forecast double-digit revenue, EBIT and EPS growth for UnitedHealth from 2015-17 as the benefits business, UnitedHealthcare, returns to growth and Optum continues its double-digit revenue growth," said Schenker. In the next 12 months, Morgan Stanley predicts the stock could trade at $140 or 19 percent higher from here. Best in the S & P 500: Freeport-McMoRan (FCX), up 15 percent this week (second best after TECO Energy, which is being acquired) Source: FactSet Shares of the natural resources producer rallied this week on reports the company hired JPMorgan to help review its strategy as hedge fund titan Carl Icahn has built an 8.5 percent stake on the firm. As Freeport-McMoRan considers different options on the back of oppressed commodity prices, Gabelli analyst Chris Mancini predicts a split of the businesses may be in the horizon. "We believe that Freeport shareholders would benefit if the company were to separate into two businesses, each solely focused on free cash flow generation and debt reduction," Mancini wrote in a note to clients Friday, rating the stock a "buy." Based on the consensus 12-month price target, analysts on the Street believe ticker FCX could climb 69 percent from here to $19, according to FactSet. Best in the Nasdaq 100: Liberty Global (LILAK), up 21 percent this week Source: FactSet Shares of Liberty Global's LILAC Group, a cable stock focused on Latin America and the Caribbean, rebounded from a recent low, as investors shopped for bargains amid a tumultuous month for the market. "Recall LILA controls the largest cable player in the most stable country in LatAm, Chile (70 percent of pro-forma revenue), and Puerto Rico (30 percent)," Pivotal Research analyst Jeffrey Wlodarczak wrote in a note to clients this week, reiterating a "buy" rating on the stock. "Even if LILA moves up to the lower end of comps, the stock could rise ~35 percent, with significantly more potential upside from solid operational/financial results and M & A, offset partially by potential continued weakness in the Chilean peso," he added. Wall Street analysts have a consensus target price of $49 on ticker LILAK, implying a 24 percent gain from here, according to FactSet. Best in the S & P MidCap 400: NCR (NCR), up 13 percent this week (second best after Con-way, which is being acquired) Source: FactSet Shares of the solutions and services technology firm rallied this week on reports that Blackstone Group may be considering a bid for the company. Earlier in the summer, Blackstone Group and Carlyle Group teamed up to acquire NCR for over $10 billion, including debt, according to Thomson Reuters. Those talks, however, fell apart. As the stock has taken a hit, down 19 percent in the past year, activist investors appear to be interested again. Wall Street analysts have a consensus target price of $33 on ticker NCR, implying a 20 percent gain from here, according to FactSet. Best in the Russell 2000: Vitae Pharmaceuticals (VTAE), up 84 percent this week Source: FactSet Shares of the biotech firm surged this week after announcing strong top-line results from a clinical study of a drug to treat autoimmune disorders. Results from the study showed that VTP-43742 was safe and well tolerated at all doses tested with no adverse events being reported. After the news, Wedbush analyst Liana Moussatos reiterated an "outperform" rating on the stock with a 12-month price target of $20 or another 42 percent gain from here. The analyst anticipates upside potential for the stock due to additional partnerships around some of Vitae's product candidates, predicting that future successful outcomes from clinical trials could result in the company's acquisition. —CNBC's Michael Bloom contributed to this story.

A dump truck is prepared to unload ore into a crusher at Freeport McMoRan's Grasberg copper and gold mining complex in Papua province, Indonesia.

Dadang Tri | Bloomberg | Getty Images

CNBC Pro highlights the top-performing stocks this week and analyzes whether the good times will continue.

(The price change was calculated as of midday Friday so it is subject to change. If one stock led multiple indices, we profiled the second best, too.)