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Some stocks already breaking out to the upside could see even more gains ahead, according to a closely-watched technical indicator. The names are forming a “golden cross” pattern, which is when the 50-day moving average crosses above the 200-day moving average. It is typically understood to be a signal for more upside ahead. CNBC Pro looked for stocks that have already seen upside over the last three months and are forming the golden cross pattern. Analysts also expect these names to jump an additional 10% or more over the next 12 months, according to FactSet. Here’s the list: SolarEdge Technologies is poised for the biggest rally, with nearly 22% upside to the average analyst price target. Its 50-day moving average is 6% above its 200-day moving average. Another solar company, First Solar , also made the list, with its 50-day moving average 18% higher than its 200-day moving average. The stock has nearly 20% upside to the average price target. Both companies were named top picks for 2023 by Goldman Sachs analyst Brian Lee, who noted in December that the stocks were 20% below early 2021 peak levels and had valuations below levels seen pre-Inflation Reduction Act. “This is despite fundamentals having significant positive momentum that we see setting up for healthy upside across many pockets of the group into 2023, particularly in the backdrop of improving margins and policy tailwinds (not uncertainties),” Lee said. Some 67% of analysts covering SolarEdge rate it a buy, while about 56% rate First Solar a buy, per FactSet. Moderna , up nearly 47% in the last three months, also made the cut. Its 50-day moving average is 18% above its 200-day moving average and it has nearly 20% upside to the average analyst price target. Last week, the drug company announced its vaccine that targets RSV, or respiratory syncytial virus, was 83.7% effective at preventing the disease in people aged 60 and older. Oilfield services company Halliburton has also had a good run up, with its stock up 33% in the last three months. Its 50-day moving average is 11% above its 200-day moving average and it has nearly 20% upside to the average analyst price target. Earlier this month, Wolfe Research upgraded Halliburton to outperform from underperform. The stock was also named an energy top pick for 2023 by JPMorgan in December. Some 82% of analysts rate Halliburton a buy. Meanwhile, homebuilder Lennar may be facing a tough housing market, but it has 12% upside to the average price target. Its 50-day moving average is 10% above its 200-day moving average. It was recently downgraded by RBC Capital Markets to underperform from sector perform. The stock last month was upgraded by Barclays to overweight from equal weight, with analyst Matthew Bouley saying the homebuilder’s size and past history of solid execution should help it navigate the housing market trough. Lennar was also named a top 2023 pick by Goldman Sachs. Lastly, State Street was one of two names in the finance industry to make the cut. The company’s 50-day moving average is 9% above its 200-day moving average. The stock has 10% upside to the average price target. State Street recently reported fourth-quarter earnings and revenue that beat expectations. It also announced new authorization to repurchase up to $4.5 billion of common stock during 2023. — CNBC’s Michael Bloom contributed reporting.
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