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Analysts see big upside in these top ranking stocks

In the wake of the recent market correction, a lot of investors are scratching their heads wondering if they should stay in the market, or site on the side lines until the dust settles.

While there are some underlying reasons to be weary, the good news for investors is that the overall economy remains solid. Investors are worried that low unemployment and wage growth will lead to inflation, which in turn will result in the Federal Reserve lifting interest rates quicker than expected.

The above is a valid argument, but it is important to also take into account that low unemployment and wage growth are both signs of strong economic times. It should lead to more discretionary income for U.S. workers… money which will be spent somewhere, and lead to higher corporate profits. At the same time, the recent tax reform will be boosting the bottom line for most companies, which should warrant a rising stock market.

I personally believe that the state of the overall economy is strong enough to remain in the stock market. Interest rates may start to rise quicker than expected, but it is also important to remember that rates remain very low on an historic basis, and it will take several 25 basis point rate hikes before any meaningful flow of money will transfer out of stocks and into fixed-income assets.

While I remain bullish, I also want to focus on stocks that have strong technical and fundamental metrics, which combined offer the best chance of future gains.

InvestorsObserver offers a ranking system to does just that, combing both technical and fundamental scores to yield an overall ranking system of the entire stock universe. If you look for stocks that have high overall rankings, and are trading significantly lower than where analysts believe the natural price to be, you have the makings for a solid stock pick in any market.

Each of the following five stocks that have high rankings and bullish price targets.

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.