As a new month looms, Wall Street expects its favorite stocks to outperform — no matter what October might bring. September has historically been the worst month of the year for stocks, according to the Stock Trader's Almanac . The equity market started the month on a downbeat, but a supersized interest-rate cut from the Federal Reserve righted the ship.
All three major averages are currently on pace to finish September higher than where they started. But as October looms, some investors believe that the latest moves to historic highs might not be built to last . Janney Montgomery Scott's Dan Wantrobski recently wrote that stocks are overbought in the short term.
"The correction we had been looking for earlier in September experienced cycle inversion on 9/11, and since then, we have effectively experienced a 'crash upward' in risk assets," the technical strategist said. "This will delay a bigger correction for the time being, but the markets in our opinion remain very vulnerable to exogenous shocks in this environment." Meanwhile, November's U.
S. presidential election might inject even more volatility into markets. Against this backdrop, CNBC Pro screened for Wall Street's favorite names that analysts believe could rally from here.
To be included in the following table, stocks had to be in the S & P 500, have a consensus buy rating from analysts and at least 30% upside to the average price target. Semiconductor manufacturer Micron Technology was one stock that surfaced. Mic.