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The S & P 500 is closing out a strong first half thanks in large part to three sectors. The broader market index is up more than 15% year to date, on track for its best first half since 2019. The bulk of those gains came from three sectors — tech, consumer discretionary and communication services — which are up more than 30% each. Leading the way higher for tech is Nvidia , which is also the index’s best-performing name with a 189% rally on the back of artificial intelligence excitement. Another stock riding the AI wave is Meta Platforms , which is up 139% year to date. The stock has also gotten a boost from cost-cutting measures . Tesla and cruise operator Carnival have been the stalwarts for the consumer discretionary sector, more than doubling thus far. Given this backdrop, CNBC Pro used FactSet data to screen the top three performing sectors to find which names analysts expect to outperform in the second half. Here’s the criteria: Member of tech, consumer discretionary or communications services sector Buy ratings from 60% of analysts or more Upside to average price target of at least 20% Here are the stocks that made the list: Disney made the list with more than 63% of analysts rating it a buy. On top of that, the average analyst price target implies upside of more than 30%. Shares of the media giant have lagged the broader market, rising just over 2%. Earlier this week, KeyBanc downgraded the stock to sector weight from overweight, citing concerns at multiple of the company’s divisions . However, Bank of America’s Jessica Reif Ehrlich reiterated her buy rating on Disney on Tuesday, noting she is confident in the company’s strategic path going forward. “We remain confident that Disney has the proper mix of IP, content library/rights, brand value, park expansion opportunities and leadership to manage through the present challenging environment and position the company for future growth,” Ehrlich said. SolarEdge Technologies also made the list, with roughly 64% of analysts rating it a buy and the average price target implying upside of more than 40%. The stock has struggled this year, losing about 6%, but Goldman Sachs analyst Brian Lee thinks it’s now more attractively valued. Lee said SolarEdge now trades around 19 times forward earnings — well below a five-year average multiple of 34 times. Casino operators Caesars Entertainment , Las Vegas Sands and MGM Resorts also made the list. — CNBC’s Michael Bloom contributed to this report.
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