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Pro Analysis

Goldman Sachs believes these stocks will lead the Dow to its next milestone

Fireworks explode over the Cinderella Castle at The Magic Kingdom, part of Disney World on January 20, 2017 in Orlando, Florida.
Vanessa Carvalho | Brazil Press Photo | LatinContent | Getty Images
Fireworks explode over the Cinderella Castle at The Magic Kingdom, part of Disney World on January 20, 2017 in Orlando, Florida.

As the Dow Jones industrial average breaches the 20,000 level for the first time, CNBC PRO found the stocks analysts at Goldman Sachs believe will lead the Dow to 21,000 and beyond.

The Dow has added about 1,000 points or 5 percent in the past two months in a continuation of the stock market's postelection rally.

We first identified Goldman's ratings for all the Dow members and tossed out those companies with a neutral or sell rating from the investment firm's analysts (About 75 percent of the Dow's 30 components).

Among the buy-rated companies, we then used Goldman's 12-month price target to spot the stocks with the most upside potential from the current levels.

Goldman's favorite stock in the Dow, based on percentage change to the 12-month price target, is Disney. The firm predicts the stock could rally 24 percent in the next 12 months.