The three major averages are heading toward a positive week during a frenzy of fourth-quarter earnings. However, analysts expect some of this week’s highest-flying stocks will likely take a breather. As of midday Friday, the Nasdaq Composite is up 4.6% for the week. The S & P 500 and Dow Jones Industrial Average are on track for gains of more than 2% each. Major players in the tech space — particularly in the semiconductor industry — contributed to the uptick in the major indexes, even after Intel posted dismal fourth-quarter results and Microsoft offered lackluster guidance . For instance, Nvidia is on pace to rise more than 13% this week, while Seagate Technology is up more than 17%. However, with the notable exception of Tesla and a few others, analysts on average expect that 12 of this week’s top 20 stock performers will see share prices fall during the next 12 months. We used FactSet’s data after Friday’s open to screen for the best-performing stocks and their potential upside based on Wall Street’s average price target. Here are the top ten biggest gainers: Western Digital , a semiconductor producer on the list, rose 14.2% this week. O n Jan. 20, Bloomberg reported that the company is engaging in merger talks with Kioxia. Yet analysts predict its price will fall an estimated 1.2% in the next 12 months. Nevertheless, more than 4 out of 10 analysts covering Western Digital rate it a buy. Lithium producer Albemarle also made the list, with shares jumping 12.7%. It is also one of the few stocks analysts anticipate will continue its rally—it has a target upside of 11%. Piper Sandler this week initiated coverage of Albemarle as overweight , noting “Lithium demand will continue to grow as [electric vehicle] production expands globally.” Several financial stocks also outperformed this week. Despite its disappointing quarterly results, Capital One rallied 13.3%. The bank announced it built out its credit reserves by $1 billion in the last quarter. American Express shares climbed 12.9% after it released upbeat guidance for the 2023 fiscal year and announced plans to increase its quarterly dividend. Analysts predict both companies’ shares will decline more than 3% this year. Just over a third of analysts covering Capital One and American Express rate the companies a buy. Out of the big winners this week, analysts are the most optimistic about Tesla. Tesla is a notable top performer this week and helped propel the Nasdaq’s gains. On Wednesday, Tesla posted quarterly earnings and revenue that exceeded analysts’ expectations . Shares have been on a tear, up more than 25% for the week, as of Friday morning . Tesla’s price cuts have sparked consumer demand and order levels are at twice the rate of production, sparking hope from analysts and investors. Wall Street estimates the automaker’s stock to grow 18.9% in 2023. — CNBC’s Michael Bloom contributed reporting
