Wall Street analysts’ favorite stocks for the fourth quarter include a casino name that could double

Published Sat, Oct 1 20228:40 AM EDT

The fourth quarter is finally here, much to the relief of many investors who took a beating in the previous three-month period. The S & P 500 fell more than 5% in the third quarter, posting its first three-quarter losing streak since early 2009, in the midst of the global financial crisis. It also marked the first time in about 80 years that the S & P 500 was up more than 10% at one point in the quarter before posting a quarterly loss, according to Bespoke. Stocks were battered last quarter as the Federal Reserve doubled down on its aggressive monetary policy stance to fight persistently high inflation. As a result, many investors will be happy to put the third quarter in the rearview mirror, and look ahead. Wall Street analysts are to here to help, recommending several stocks that could do well going forward. CNBC Pro screened the S & P 500 for stocks that are well liked by analysts (buy ratings from at least 60% of those covering them) and that could rally (upside to average price target of more than 60%). Here are the stocks that made the cut. Casino operator Caesars Entertainment tops the list in terms of potential upside, with analysts on average expecting the stock to go up nearly 130% over the next 12 months. On top of that, 75% of analysts covering the stock rate it as a buy, FactSet data shows. Shares of Caesars have struggled in 2022, plunging more than 64%. They also fell more than 14% in the third quarter, marking their fourth straight quarterly decline. Residential generator builder Generac also made the cut, with 85% of analysts rating it a buy and an average price target that implies upside of nearly 90%. Bracing for the fourth quarter Markets plagued by increasing economic uncertainty and geopolitical risk in fourth quarter No more 'TINA:' The case for putting money into cash, short-term bonds in this volatile market Cowen analyst Jeffrey Osborne recently initiated coverage of the stock with an outperform rating , noting that Generac is "the clear industry leader within a market that still has growth potential given its ~5.5% penetration rate." "The instability of the grid continues to drive significant power outages across the U.S. during periods of extreme weather," Osborne added. Generac shares have fallen sharply year to date, dropping about 50%. They also tumbled 15% in the third quarter, their fifth straight quarterly decline. Chipmakers AMD and Nvidia are also on the list. Both stocks have buy ratings from nearly two-thirds of analysts covering them. Analysts on average see upside of more than 85% for AMD and almost 65% for Nvidia. The two chipmakers are massive laggards this year, losing more than half of their value. Still, JPMorgan's Harlan Sur thinks Nvidia can get a boost from its next-gen gaming products, saying in a Sept. 20 note that the company "remains 1-2 steps ahead of competitors." Meanwhile, AMD could see sharp future gains thanks in part to its strong market position, said Morgan Stanley analyst Joseph Moore in a Sept. 23 note. Moore has an overweight rating on the stock and a price target of $95 per share. Signature Bank is the only stock on the list with buy ratings from every analyst covering it. The New York-based full service bank is down more than 50% so far this year, but analysts on average see it rallying 71%. On Sept. 2, Wells Fargo analyst Jared Shaw called Signature Bank one of his favorite growth names, citing strong net interest income expectations through 2023. Other stocks that made the list are: News Corp., Halliburton, Delta Air Lines, Boeing, Catalent, Bio-Rad Laboratories, Baker Hughes, Match Group and Alaska Air. — CNBC's Michael Bloom contributed to this report.