U. S. stocks ebb, analysts are indifferent, and always firmly believe that with the second quarterly report approaching, U. S. stocks will "hit bottom rebound."

Although U. S. stocks are already in a bear market, with the S & P 500 having its worst first half since 1970, analysts have been incredibly optimistic because of bravery or refusal to face reality.

Long-term optimistic analyst: the target price of US stocks at least doubled

According to a Bloomberg survey of analysts, they believe the share price of COVID-19 vaccine developer Novavax is expected to soar by another 193 per cent.

In addition, some bullish analysts say that although the company has failed to turn a profit for four years, its share price still has 129 per cent room to rise.

And Carvana, America's first pure online used-car retailer, whose shares have tumbled 90% so far this year, analysts expect it to rebound by 218%.

This is an incredible exaggeration, but analysts stick to their predictions.That is, after six months of market repricing, many stocks need to double or triple their target prices.

In response, Ed Yardeni, president of Yardney Research, questioned:

At a time when the economy is showing signs of slowing, has the view of analysts that earnings will rise become a "delusion"? Now that investors are tired of valuations, they won't really believe the numbers. Especially when the shares held by investors have fallen by 30%, and analysts tell them that the share price will double in a year, there is really not much credibility.

The huge gap between stock price expectation and stock price trend

Among analysts surveyed by Bloomberg, they agreed that 33 companies in the Russell 1000 are expected to rebound 100 per cent or more, and hundreds of stocks are up 50 per cent.

However, history makes it clear that while a few people may successfully predict a market rebound, most people's expectations of a rebound are often wrong.

Some analysts say that there is actually a huge gap between the expectation of the stock price and the real stock price trend.

The reason may be that analysts who are more concerned about the collapse in share prices generally believe that the share prices of these companies will rebound as concerns about the recession fade. During the COVID-19 epidemic, for example, many stocks that suffered falling valuations eventually succeeded in counterattacking and reached their target prices.

In addition, it is worth noting thatUs companies are about to usher in the earnings season, which may really reflect the impact of the Fed's rate hike on them.

Analysts are also waiting for second-quarter results to decide how to adjust their views. But for now, they are more optimistic as a whole.

Ivan Feinseth, analyst and chief investment officer at Tigress Financial Partners, warned:

At present, there has been a sell-off in the market, and we will have a big wave of results, which is what investors are most worried about.