U.S. and global stocks rallied in the first half of the year, but the outlook for the remainder of 2023 looks uncertain amid sticky inflation, continued Fed rate hikes and the prospect of a recession looming. The S&P 500 surged 15.9% in the first six months of the year, its best first-half performance since 2019. Meanwhile, the MSCI World Index rose more than 12%. Japan has been the best performer among global equities, with shares up more than 16% so far this year, while European shares have risen 7.47%, according to data compiled by Julius Baer. China was the worst performer, down 9%. “Looking ahead, we expect defensive sectors to outperform as economic growth slows and geopolitical and policy uncertainty mounts. Stock picking is key, as the Swiss private bank said in a note on Monday. Many defensive sectors are being challenged by structural trends.” While many stocks are up so far this year, analysts expect some stocks to continue soaring through the remainder of 2023 and beyond. CNBC Pro screens the best-performing U.S. and global stocks so far this year (up more than 15%), and the average analyst price target implies at least 30% upside over the next 12 months. At least 60% of analysts have Buy ratings on all stocks. Electric carmakers BYD and Stellantis both made the list, with gains of more than 20 percent in the first half. They’re also well-loved by analysts, with more than 70% Buy ratings and more than 30% potential upside. Evercore called Buffett’s BYD “China’s sleepy EV giant” in a report last month. Meanwhile, Stellantis, which owns auto brands including Chrysler, Citroen and Jeep, said earlier this year it would add nine new battery-electric vehicles to its line-up in a further push into a lucrative market currently dominated by China. manufacturer. Baidu, also featured on CNBC Pro’s screen, has a potential upside of 32% and a Buy rating of 74%. Morgan Stanley was bullish on the Chinese internet services giant in a June report, calling it the country’s best AI company and the “most visible beneficiary” of China’s $7.4 trillion AI opportunity. Chaohi International Holdings is the best-performing stock on the screen, with a 52.7% increase in the first half of the year, and it is also the only stock with a 100% buy rating. Super Hi, the international operator of popular Chinese hotpot chain Haidilao, also has the highest potential upside at 51%. Only three U.S. stocks appear in the S&P 500, and they are all entertainment and/or hotel stocks: Warner Bros. Discovery, casino operator MGM Resorts and Caesars Entertainment. Entertainment).