The bull market came to an abrupt halt midway through the first quarter, with the broader market losing more than 14% since its February peak. Although that's not particularly reassuring, a downbeat start to 2025 should theoretically mean that lots of stocks are on sale.
Before we get to stocks with the most upside potential based on industry analysts' average price targets, let's put our current market in perspective.
The S&P 500 is off more than 10% for the year to date through late April. That's not ideal, but it's hardly a wipeout. Note that the main benchmark for U.S. equity performance was at this price level in August.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
It's also worth mentioning that the S&P 500 is up more than 6% on a price basis over the past 52 weeks.
It's understandable if this context offers little solace to jittery investors at this precarious time for equities.
After all, tariff uncertainty and rising recession odds are complicating the outlook for corporate earnings. Be that as it may, a bottom-up look at the S&P 500's constituents reveals that analysts remain bullish on scores of names despite rising macroeconomic uncertainty.
How can this be?
Cheaper valuations equal higher returns
Recall that equities were historically pricey before the stock market correction. If a stock's price falls faster than its earnings prospects, it can start to look like a bargain.
And if a stock gets slammed out of proportion to its estimated operating earnings, it can appear to be a screaming buy.
That helps explain how a total of 33 stocks in the S&P 500 have implied upside of at least 50% over the next 12 months or so, according to price target data from S&P Global Market Intelligence.
But before we get to the S&P 500 stocks that could rally the most based on price targets, a caveat is in order.
Price targets are a blunt tool when it comes to sussing out cheap stocks. Committing capital based on a single data point is not an investment process.
It's also important to note that stocks with the most upside potential don't necessarily get consensus Buy recommendations from the very same analysts whose models spit out the target prices.
With that warning out of the way, if you're looking for beaten-down stocks with the most upside potential, the names listed below aren't a bad place to start.
Company (Ticker) | Average price target | Upside to price target | Consensus recommendation score | Consensus recommendation |
Moderna (MRNA) | $51.14 | 107% | 2.78 | Hold |
Micron Technology (MU) | $127.58 | 85% | 1.50 | Strong Buy |
First Solar (FSLR) | $232.12 | 81% | 1.56 | Buy |
Deckers Outdoor (DECK) | $189.99 | 80% | 1.87 | Buy |
Norwegian Cruise Line Holdings (NCLH) | $28.96 | 77% | 1.79 | Buy |
Western Digital (WDC) | $64.02 | 75% | 1.71 | Buy |
Caesars Entertainment (CZR) | $44.40 | 74% | 1.53 | Buy |
Albemarle (ALB) | $91.55 | 73% | 2.57 | Hold |
Las Vegas Sands (LVS) | $55.71 | 70% | 1.56 | Buy |
Stanley Black & Decker (SWK) | $95.90 | 68% | 2.65 | Hold |
Global Payments (GPN) | $114.97 | 66% | 2.19 | Buy |
Bio-Techne (TECH) | $79.70 | 66% | 1.80 | Buy |
ON Semiconductor (ON) | $57.08 | 65% | 1.93 | Buy |
Super Micro Computer (SMCI) | $51.77 | 64% | 2.71 | Hold |
MGM Resorts International (MGM) | $47.44 | 64% | 1.52 | Buy |
Warner Bros. Discovery (WBD) | $13.27 | 64% | 2.19 | Buy |
Nvidia (NVDA) | $165.66 | 63% | 1.40 | Strong Buy |
Biogen (BIIB) | $191.39 | 61% | 2.20 | Buy |
Microchip Technology (MCHP) | $62.04 | 61% | 1.79 | Buy |
Advanced Micro Devices (AMD) | $140.48 | 61% | 1.94 | Buy |
EPAM Systems (EPAM) | $235.78 | 60% | 2.09 | Buy |
Viatris (VTRS) | $12.03 | 59% | 2.56 | Hold |
GE HealthCare Technologies (GEHC) | $98.95 | 59% | 1.75 | Buy |
Regeneron Pharmaceuticals (REGN) | $890.34 | 58% | 1.81 | Buy |
Teradyne (TER) | $111.27 | 56% | 1.88 | Buy |
Carnival Corp. (CCL) | $28.02 | 56% | 1.72 | Buy |
IQVIA Holdings (IQV) | $223.21 | 55% | 1.60 | Buy |
Generac Holdings (GNRC) | $172.23 | 54% | 1.96 | Buy |
Arista Networks (ANET) | $107.87 | 52% | 1.73 | Buy |
Zebra Technologies (ZBRA) | $342.52 | 51% | 2.00 | Buy |
Charles River Laboratories (CRL) | $159.11 | 50% | 2.85 | Hold |
Dell Technologies (DELL) | $127.06 | 50% | 1.54 | Buy |
Salesforce (CRM) | $368.75 | 50% | 1.75 | Buy |
Data as of April 18, courtesy of S&P Global Market Intelligence.
Related content
-
Do You Really Need That Wine Cellar?Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My First $1 Million: Events Industry CEO, 65, Northern New JerseyEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last LongAccording to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
