Tired of listening to your neighbors bragging about all their winning S&P 500 stocks? You just got another shot at some of them — thanks to the April sell-off, analysts say.
Seven top S&P 500 stocks up 20% or more this year so far — including Uber Technologies, Arch Capital and Nvidia — are now at least 11% undervalued, says an Investor's Business Daily analysis of analyst forecast data from S&P Global Market Intelligence and MarketSurge.
Why the sudden opportunity? These seven stocks are down an average of 4% just this month. And that might not sound like much, but it's roughly in line with the S&P 500's 3.7% fall in April so far. These are the leaders, too.
After all, the market's pullback is tied to the future of interest rates, not the prospects of these leading stocks. "Investors are reassessing risk appetite as Chair Powell is not confident that inflation is cooling enough for rate cuts," said Jeffrey Roach, chief economist for LPL Financial.
Uber-Size Opportunity
Transportation firm Uber Technologies continues to be the S&P 500 stock that analysts see the greatest promise in. They're calling for the stock to trade for 16.3% more in 12 months. And part of that upside is tied to the stock's 3.8% fall in April so far.
But despite Uber's fall, it's still a big winner for the year. Shares of Uber are up nearly 21% this year so far. The company is expected to report an adjusted profit this year of $2.18 a share, up nearly 20% vs. 2023. That's much better than the S&P 500's profit growth forecast.
Analysts' next favorite S&P 500 leader to scoop up is Arch Capital. Shares of the insurance company are still up nearly 23% this year. And that's despite shedding 1.6% in April so far. And yet analysts think this company's shares will rise 15% in the next 12 months.
Your Second Shot At Nvidia
AI king Nvidia is one of those rare "millionaire maker" stocks. The stock is already up more than 73% this year so far. Even some professional money managers are afraid to chase the stock. But analysts think the 4.8% drop in April sweetens the opportunity. Analysts think Nvidia's stock will be nearly 15.2% higher in 12 months than it is now.
And it's hard to argue when you look at the company's growth rate. Analysts think the company will make an adjusted $24.89 a share this fiscal year, up more than 92% from last fiscal year.
With growth like that, it's easy to see why analysts are anxious to get another shot at Nvidia.
'Second Chance' S&P 500 Stocks
These stocks are up 20% or more this year with the highest 12-month price-target upside
| Company | Ticker | Year-to-date change | Upside to target |
|---|---|---|---|
| Uber Technologies | 20.3% | 16.3% | |
| Arch Capital | 22.5% | 15.2% | |
| Deckers Outdoor | 21.8% | 13.5% | |
| Amazon.com | 20.7% | 14.0% | |
| Catalent | 24.7% | 13.4% | |
| Nvidia | 73.7% | 15.2% | |
| Hartford Financial Services | 21.5% | 11.4% |
