Whatever mild rally the Dow Jones Industrial Average enjoyed earlier in 2023 appears to be over now. The Dow has given up all of its gains and is in negative territory year to date.
However, that doesn't mean that analysts are pessimistic about every stock in the blue-chip index. These three Dow Jones stocks could soar 19% to 29% over the next 12 months, according to Wall Street.
1. Boeing
Boeing's (BA 0.25%) stock performance this year has been similar to the jets that it makes. Its shares took off -- and then they landed. After jumping 25% year to date, by late July, all of Boeing's gains evaporated.
The average analysts' 12-month price target, though, reflects an upside potential of nearly 29%. The most optimistic analyst surveyed by Refinitiv thinks that Boeing's share price could vault more than 48% higher.
There are at least a couple of reasons to think that Wall Street could be right about Boeing. First, the aerospace company's free cash flow improved dramatically in the second quarter of 2023 compared to the prior-year period. CEO David Calhoun said in the second-quarter earnings call that "cash flow is the best metric that we have to measure progress" with the company's recovery.
Second, the demand for Boeing's airplanes remains strong. Calhoun noted that 42,000 new airplanes will be needed over the next 20 years. He thinks that Boeing will operate in "a supply-constrained world for the foreseeable future."
2. The Walt Disney Company
The Walt Disney Company (DIS -0.04%) got off to a good start early in 2023. However, it's been mainly downhill ever since. Like the broader Dow Jones index, Disney stock is now below where it started the year.
Wall Street thinks that a rebound could be on the way. The average 12-month price target for Disney is 19% higher than its current share price. Granted, not everyone on Wall Street likes the stock. One analyst even recommends selling Disney. However, half of the 30 analysts surveyed by Refinitiv in October rate the stock as a buy or strong buy.
What will it take for Disney to hit the average price target? One key factor will be to stop the bleeding at Disney+. CEO Bob Iger believes the company is on the right track to achieve sustained profitability with the streaming service, especially with momentum picking up for the ad-supported option.
One potential catalyst for Disney is a potential partnership with ESPN. Iger mentioned that the company in August that the company is "looking at distribution, technology, marketing, and content opportunities where we retain control of ESPN." He added that there has been significant interest from multiple parties. The right deal just might provide the spark that Disney stock needs.
3. Walgreens Boots Alliance
Unlike Boeing and Disney, Walgreens Boots Alliance (WBA 0.57%) hasn't given investors anything to get excited about this year even briefly. Shares of the pharmacy giant have plunged more than 40% year to date.
Analysts, though, remain perhaps surprisingly confident about Walgreens' prospects of recovery. The average 12-month price target for the stock reflects an upside potential of around 19%. Of the 24 analysts surveyed by Refinitiv in October, 15 rate the stock as a buy or strong buy. None recommend selling it.
Why is Wall Street so bullish about this beaten-down stock? Perhaps most importantly, they like the cost-cutting moves that Walgreens is taking. The company should begin to see the results of those initiatives in the second quarter of its new fiscal year which started on Sept. 1, 2023.
Analysts could also be cautiously optimistic about new CEO Tim Wentworth. He just took the helm of Walgreens after serving most recently as the founding CEO of Cigna's Evernorth health services business. Wentworth previously led pharmacy-benefits manager Express Scripts and Medco's Accredo specialty pharmacy.
