S&P 500 investors are boldly piling into select stocks this year — prompting several to double from their lows. But analysts still see upside despite these huge runs.
Six stocks in the S&P 500 already up 100% or more this year from their 52-week lows, including tech stock EPAM Systems, utility Constellation Energy and tech First Solar, are expected to be higher still in 12 months, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
Seeing that upside remains even after such huge run-ups shows just how much damage S&P 500 stocks suffered last year. And such wild swings have investors guessing what's next.
"There have only been 27 trading days this year, and yet 16 have been moves of 1% or more," according to Bespoke Investment Group. "Since 1972, this is the tenth year where there have been 15 or more 1% daily moves, and last year there were actually 17 at this point. What's unique about this year, though, is how strong stocks have been during this period of heightened volatility."
Big S&P 500 Rally From The Lows
The S&P 500's 6.7% gain this year is impressive. But it's even more head-turning when you look at how the index has jumped more than 17% from its low in the past year.
And if you look beneath the S&P 500's surface, you see even bigger gains. The average S&P 500 stock is up 33% from its low in the past 52 weeks. And nearly 80 of the stocks in the S&P 500 are up 50% or more from their 52-week lows.
Some investors might think following such big jumps, further gains will be hard to come by. But analysts insist that a group of stocks have upside still, despite already jumping 100%.
Biggest Upside Left: EPAM Systems
Megacap technology stocks might get most of the attention. But EPAM is the hot technology stock that analysts think will rise the most.
EPAM, a software development firm, has already seen its shares soar more than 110% from their 52-week low on March 8 to 353.48. That's an impressive rise few other S&P 500 stock can rival. But at the same time, analysts think the stock will be worth 417.79 in 52 weeks. If that's a correct assessment, it would signal a further 17.5% jump in the stock price.
Additionally, EPAM isn't just a bounce-back story. There's fundamental strength, too. Analysts think the company's earnings will rise more than 16% in 2023, even after rising an estimated 17% in 2022.
More Gains After A Double?
A double from an electric utility stock? Baltimore-based Constellation Energy pulled it off.
Shares of the company, formerly a unit of Exelon, are up an impressive 106% from their 52-week low on Feb. 23 to 86.88. That stellar return more than makes up for the company's unexpectedly stingy 0.7% yield for its industry.
But analysts are hopeful there's more where that came from. They're calling for it to be worth 100.46 in 12 months, and if right, that's nearly 16% additional upside. Constellation, too, has a solid profit story. Analysts think the company's adjusted profit per share will rise another 46% in 2023. Keep in mind for 2022 it's on pace to make $3.01 a share, reversing a loss of $1.24 a share in 2021.
There are also big hopes for First Solar, a solar equipment provider. Shares are already up 174.1% from the May 12 low to 163.37. But if analysts are right the stock will be 181.26 a share in 12 months' time, for a gain of 11%.
All this means is that a 100% jump from the low isn't necessarily the end of those rallies.
100% Just The Start For These S&P 500 Companies?
Analysts see upside in these S&P 500 companies that doubled from their 52-week high
| Company | Ticker | From low | Upside | Sector |
|---|---|---|---|---|
| EPAM Systems | 110.8% | 17.5% | Information Technology | |
| Constellation Energy | 106.0 | 15.6 | Utilities | |
| First Solar | 174.1 | 11.0 | Information Technology | |
| Royal Caribbean Cruises | 130.7 | 6.1 | Consumer Discretionary | |
| Wynn Resorts | 116.3 | 4.1 | Consumer Discretionary | |
| Netflix | 114.1 | 2.5 | Communication Services |
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
