Wall Street predicts big gains for these 5 stocks

Wall Street analysts are typically bullish on the names they cover, but when it comes to five stocks in particular, some are looking for truly incredible upside.

These are the five stocks in the S&P 500 with median analyst target prices that imply gains of 53 percent or more.

Importantly, these stocks all share another salient quality: Each has already slid mightily this year. For that reason, the high price targets may be more indicative of analysts' slowness or reticence to reduce their target prices, rather than of carefully thought out projections of incredible gains.

Still, "Crossing Wall Street" blog editor Eddy Elfenbein says that among the stocks, Signet Jewelers could indeed rise powerfully in the second half of the year.

"[Signet Jewelers'] problems are fixable. They can be addressed if management does a good job on them," he said Wednesday on CNBC's "Trading Nation." "So I think with a trader looking to take a very speculative position in Signet, I think for the next 12 months, there is an opportunity there."

Not everyone is excited about these Wall Street analyst picks. Craig Johnson, managing director at Piper Jaffray, disagrees with the list and singles out Delta in particular as the worst bet of the five.

Looking at a chart of Delta, Johnson points out that the airline appears to have plateaued.

"The chart is starting to look a bit distributional, it's kind of rolling over a little bit here and you're off a 20 change in percent from the highs," he said. "The stock's officially in a bear market off from its highs, and it looks like there's going to be more downside yet to come."

"These are all very good companies, it just might not be the time to be buying the individual stocks," Johnson added.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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