The S&P 500 gained a whopping 29% in 2019, delivering its best return since 2013.
But while analysts expect more modest returns in 2020, they do see a few standout stocks for the year ahead.
Both stocks underperformed the market last year, but analysts’ consensus price targets anticipate 34.8% and 32.4% upside, respectively, for these two stocks as the oil sector strengthens in the new year.
Analysts are also bullish on Quanta Services (NYSE: PWR), an electric power infrastructure services company. The consensus price target indicates 20.4% upside ahead for the stock.
DA Davidson upgraded Quanta Services shares late last month from Neutral to Buy with a price target of $50 – nearly 22% higher than the current price.
“We recently hosted meetings with Quanta and investors,” wrote DA Davidson analyst Brent Thielman in a note. “Large project prospects, telecom opportunity, execution, industry expectations for the coming year and cash flow are focus areas. Following meetings and with supplemental findings… we are incrementally more positive regarding NT/2020 growth prospects for Quanta. We raise our rating to BUY (PT now $50) as we now see better prospects for growth acceleration into 2020 (coupled with better prospects for margin stability/expansion).”
Cowen analyst John Blackledge recently reaffirmed his Outperform rating for Amazon shares, naming the stock one of the firms “Best Ideas for 2020” and giving it a price target of $2,400 – 26% higher than the price as of this writing.
“Amazon’s revenue growth will remain strong in ’20 led by eCommerce, adv., AWS and sub. businesses, while we forecast margin expansion,” Blackledge wrote, adding that AWS and advertising are “two fast growing, high margin businesses [that] afford AMZN flexibility to invest, while also growing margins.”
While Aegis Capital reiterated its Buy rating on Facebook just last week, upping its price target from $235 to $300, indicating 43% upside from where the price is now.
Aegis analyst Victor Anthony said the “stock will power through” any regularity and antitrust headwinds this year, and praised Facebook’s “continued strong user growth, continued share gains of global advertising, and progress on monetizing Messenger and WhatsApp.”