Street picks: 10 stocks ready to pop

Published Tue, May 5 20156:00 AM EDT

As the market hovers around an all-time high, CNBC Pro used technical and fundamental analysis to find the stocks that are primed to rally the most in the continuation of the bull market. This time we focus on financials, which according to market professionals, are projected to be the next leadership group as previous areas of strength stall. Our chart analysis was conducted by Carter Worth, head of technical analysis at Cornerstone Macro. The technician identified more than 100 financial names that he deems as "buying" opportunities. Of those names, we then searched for the stocks that Wall Street analysts love the most for their fundamentals. So with the fundamentals and charts aligned, the stocks on this report could be great breakout candidates. One of the stocks on the list is MGIC Investment , which provides mortgage insurance. In the past three months, shares of ticker MTG are up 17 percent compared with a gain of 4 percent for the S & P financial sector. Other names that posted large increases are FCB Financial , Western Alliance and CBRE Group —all up more than 10 percent over the same period. "At this point in the cycle, we believe that for the market to go higher, financials must go higher," said Worth, pointing to the group as a key component for the rally to continue. Financials are among the few sectors that have still yet to recover from the previous record in 2007, making room for the group to catch up with the rest of the market. The large composition of the index, with 87 members and a total market value of $18.5 trillion, also gives the group the second-highest weight in the S & P 500. In the past several weeks, health care and consumer discretionary stocks, two of the best performing sectors in the past year have lagged behind, leaving technology stocks to do the heavy lifting during the S & P's latest leg higher. But with technology already surpassing the peak during the dot-com bubble, many market observers are looking at financials as the next saving grace for stocks.

Trader on the floor of the New York Stock Exchange.

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As the market hovers around an all-time high, CNBC Pro used technical and fundamental analysis to find the stocks that are primed to rally the most in the continuation of the bull market.

This time we focus on financials, which according to market professionals, are projected to be the next leadership group as previous areas of strength stall.

Our chart analysis was conducted by Carter Worth, head of technical analysis at Cornerstone Macro. The technician identified more than 100 financial names that he deems as "buying" opportunities.

Of those names, we then searched for the stocks that Wall Street analysts love the most for their fundamentals.

So with the fundamentals and charts aligned, the stocks on this report could be great breakout candidates.