The Dow Jones Industrial Average just hit an all-time record high. Now investors want to know which of the 30 Dow stocks will lead the measure to its next milestone.
A week after the S&P 500 hit a record, the Dow Jones Industrial Average reached the 27,517.58 level on Monday, boosted by trade bellwethers Boeing and Caterpillar, as the U.S.-China trade war shows signs of improvement.
Now, analysts see fast-food giant McDonald's, media titan Disney and Boeing leading the next leg of the bull market.
CNBC screened all 30 companies in the Dow and found the stocks with the highest upside to their consensus 12-month price target set by analysts on Wall Street. Simply put, these are the Dow stocks that analysts expect to go up the most in the next 12 months.
Despite the sudden departure of CEO Steve Easterbrook, McDonald's is the company analysts expect to run up the most in the next year. McDonald's is competing in a crowded fast-food landscape, with Burger King's parent company, Restaurant Brands International, and Wendy's, both returning more than McDonald's in 2019 so far.
Bob Iger-led Disney is slated to rip higher as the company's streaming platform, Disney+, is set to debut this month, further escalating the so-called streaming wars. Despite 737 Max issues, Wall Street is still bullish on Boeing, betting on a return to service of the troubled plane next year.
Microsoft is one of the already-hot stocks that Wall Street expects to stay hot. The technology company is up more than 40% this year, and analysts see it rising another 11% over the next 12 months.
Microsoft is the second-best year-to-date performer on the list, backing up Apple, whose stock is up more than 60% since January. But Apple's rally might be coming to an end. Analysts believe some of the companies that have led the way this year, like Apple (up 63%), J.P. Morgan Chase (up 34%) and Home Depot (up 40%) are going to cool off and actually decline over the next 12 months.