What's the best part of a big S&P 500 sell-off? It can open up new ways to make money.
And that's exactly what analysts are calling for. Nine S&P 500 stocks down 30% or more from the July 16 high, including Micron Technology, Super Micro Computer and Moderna, are poised to jump at least 33% in the next 12 months, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
Those are the largest gains predicted for stocks down that much from the high. Analysts think the average S&P 500 stock will only rise 16% in the next 12 months. And that's following a 4.8% fall by the average S&P 500 stock.
"Many investors are sitting on big gains in tech stocks and these positions have likely become too large of a weighting in their portfolio, so it's important for investors to right size their risk, as we expect this volatility to continue for a bit longer," said Michael Landsberg, chief investment officer, Landsberg Bennett Private Wealth Management.
Good Memories For S&P 500
Memory semiconductor maker Micron Technology is the fallen S&P 500 stock analysts have the highest hopes for.
Analysts think the stock will rally nearly 87% in the next year. And that's following a nearly 32% drop from the market's high. The stock has bullish fundamentals to back up the optimism. Analysts think the company's profit will rise 128% in 2024 and nearly 700% in 2025. And it already carries a solid IBD 81 EPS Rating.
Another favorite is beaten up AI computer maker, Super Micro Computer. The stock is down a crushing 44% from the S&P 500's high. But analysts think it will rally 84% by a year from now. The company's profits look strong, growing 56% in 2025 and 30% in 2026. The stock already has a 99 EPS Rating.
Not Just Tech
Fallen tech stocks are popular with analysts. More than half of the nine cratering stocks with glowing forecasts are in information technology. But health care has potential winners, too.
Analysts think vaccine maker Moderna will see its shares rally nearly 60% in a year, following a nearly 35% drop from the S&P 500 high. This remains a show-me situation, though. The company's profit is seen falling 107% in 2024. And its EPS Rating is a lackluster 16.
It goes without saying that you should always watch buy rules before investing, especially in a stock that's falling. But it's also a good idea to have a buy list of stocks at the ready before it's too late.
Analysts' Favorite Beaten Down S&P 500 Stocks
Seen gaining 30% or more after falling from July 16
| Company | Ticker | Ch. From 7/16 | Sector | Upside to target |
|---|---|---|---|---|
| Micron Technology | MU | -31.9% | Information Technology | 86.3% |
| Super Micro Computer | SMCI | -43.8% | Information Technology | 83.7% |
| Moderna | MRNA | -34.8% | Health Care | 59.8% |
| CrowdStrike Holdings | CRWD | -37.5% | Information Technology | 54.2% |
| Intel | INTC | -44.7% | Information Technology | 47.0% |
| Dexcom | DXCM | -40.3% | Health Care | 42.0% |
| Lam Research | LRCX | -30.5% | Information Technology | 40.4% |
| Ford Motor | F | -32.1% | Consumer Discretionary | 38.7% |
| Edwards Lifesciences | EW | -30.4% | Health Care | 33.9% |
