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Whenever analysts at Wall Street’s biggest banks decide to band together to back a particular group of stocks, it’s a good idea for retail investors to keep an eye on the trends, try to reverse engineer their views and opinions and, more importantly, where they come from. Confident analysts often take a bullish or bearish view on a particular industry in which individual stocks will attract more market attention.

Today’s list of recent stock updates is based on analyst consensus JP Morgan Chase & Co. New York Stock Exchange: JPM and what one of the largest banks sees in various sectors of the US economy. Starting with the industrials sector, a broader macro view has allowed these analysts to highlight several well-known stocks with attractive growth potential and noteworthy stocks in the consumer discretionary sector with similar growth potential.

Promotions such as Cummins Inc. New York Stock Exchange: CMI are on this list as vital players in the upcoming recovery of the transportation sector and the broader breakthrough in the US manufacturing sector. Taking advantage of the same industrial tailwind, stocks Caterpillar Inc. New York Stock Exchange: CAT These analysts also noted that they have begun to move higher ahead of a potential rally. Finally, recent downturns Celsius Holdings Inc. NASDAQ: CELH prompted analysts to recognize its potential benefits.

Why analysts suddenly increased Cummins shares

Even though Cummins shares are already trading at 95% of their 52-week high, showing investors that the bullish momentum is initially in their favor, Wall Street analysts are still poised to push the stock to a new high for the year, and that’s it based on one simple view of industrial space.

After a 25-month decline in the manufacturing PMI, some analysts expect a recovery in 2025, especially as the Federal Reserve expects further interest rate cuts. These reductions could create a potentially better business environment, leading to increased activity.

The activity means increased demand for transporting raw materials and finished products across the United States, and investors should not be surprised to see the construction sector benefiting from this trend as well. Since Cummins supplies diesel and gas engines to the transportation and construction industries, putting everything together is relatively easy.

That’s why JP Morgan analysts have decided to raise their target price for Cummins shares to $420 per share, and also assigned the company a more optimistic “Neutral” rating compared to the previous “Underperform” rating. To prove these views correct, Cummins stock would have to rise 14.3% from today’s level.

Caterpillar Stock Upside Is a Byproduct of Expansion

As the manufacturing PMI tries to recover from this multi-year slump, it won’t just be Cummins stock that faces a new test of high prices; Caterpillar is also in the same boat, not only as a domestic supplier of construction equipment and machinery, but also as a net exporter.

Analysts at Morgan Stanley have recently turned bearish on the dollar, in line with JP Morgan’s views on industrial stocks. A lower dollar will give foreign buyers more purchasing power for American exports because their currencies will become relatively stronger.

That being said, Caterpillar and Cummins shares are in the eye of this potential export storm, bringing new orders and higher earnings per share (EPS). Looking ahead, JP Morgan analysts decided Caterpillar stock should trade higher, so they set the price to $515 alongside an Outperform rating for Caterpillar stock.

That valuation would require a net gain of up to 35.3% from where it trades today, which is no easy or common task for an industry giant with a market capitalization of $183.7 billion.

The discount on Celsius shares is undeniable

After such actions as Coca-Cola Company. NYSE: K.O. And PepsiCo Inc. NASDAQ: PEP dropped due to proposed changes by the new health chief, Celsius fell along with other names, although it does not have half the ingredients targeted by these changes.

That’s why analysts decided to give the stock an Overweight rating, and this time JP Morgan initiated coverage on the stock with a price target of $37. With shares currently trading at 27% of their 52-week high, Celsius could be considered an excellent risk/reward proposition for retail traders today.

Delivering 16.3% upside potential from these new targets is one thing; Another option is to consider the recent 3.2% rise in shares of State Street, an institutional investor that currently holds up to 2.3% of Celsius shares, with a position today worth $166.9 million. This is another indicator investors should to consider when making your bullish forecasts.

Before you consider Celsius, you should hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts were quietly telling their clients to buy now, before the broader market caught on… and Celsius wasn’t on the list.

While Celsius currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.

View five stocks here

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