These S&P 500 stocks have cratered, but analysts think 12 can turn it around with rebounds of up to 70%

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By Philip van Doorn

Stocks expected to roar back include PayPal, Paycom, Etsy and SolarEdge

A period of high inflation and rising interest rates has taken out shares of companies with rich valuations. Then there’s the stubborn coronavirus, with variants raising infection rates and causing stocks in travel-related industries to crash after they staged partial recoveries.

Uncertainty is in the air, and a 7% consumer inflation rate doesn’t help. A prolonged period of rising interest rates will make the bond market more attractive to investors who had fled to the stock market in search of yields during the pandemic.

In the S&P 500 Index , 85 stocks were down at least 20% from their 52-week highs through Jan. 12. A 20% decline is generally considered bear-market territory. Still, the benchmark index actually rose slightly Jan. 12, when the government reported eye-popping inflation figures, and closed at a level only 2% below its all-time intraday high set Jan. 4.

Worst S&P 500 performers from 52-week highs

Narrowing the list of decliners, here are the 25 S&P 500 stocks that have fallen at least 30% from their 52-week intraday highs:

Company                              Ticker  Decline from 52-week high  Closing price -- Jan. 12  52-week high  Date of 52-week high 
Penn National Gaming Inc.             PENN                      -66.6%                   $47.44       $142.00       03/15/2021 
ViacomCBS Inc. Class B                VIAC                      -65.7%                   $34.97       $101.97       03/15/2021 
Discovery Inc. Class A               DISCA                      -63.2%                   $28.79        $78.14       03/19/2021 
Moderna Inc.                          MRNA                      -55.2%                  $222.89       $497.49       08/10/2021 
Gap Inc.                              GPS                       -52.8%                   $17.75        $37.63       05/18/2021 
Biogen Inc.                           BIIB                      -51.9%                  $225.34       $468.55       06/07/2021 
Twitter Inc.                          TWTR                      -50.2%                   $40.25        $80.75       02/25/2021 
Enphase Energy Inc.                   ENPH                      -47.2%                  $149.28       $282.46       11/22/2021 
Etsy Inc.                             ETSY                      -42.1%                  $178.06       $307.75       11/26/2021 
Las Vegas Sands Corp.                 LVS                       -41.7%                   $38.95        $66.77       03/03/2021 
Wynn Resorts Ltd.                     WYNN                      -40.4%                   $85.80       $143.88       03/15/2021 
PayPal Holdings Inc.                  PYPL                      -39.6%                  $187.20       $310.16       07/26/2021 
Generac Holdings Inc.                 GNRC                      -39.2%                  $319.00       $524.31       11/02/2021 
Activision Blizzard Inc.              ATVI                      -38.0%                   $64.81       $104.53       02/16/2021 
MarketAxess Holdings Inc.             MKTX                      -37.0%                  $371.37       $589.25       02/02/2021 
IPG Photonics Corporation             IPGP                      -36.9%                  $165.74       $262.55       01/19/2021 
Paycom Software Inc.                  PAYC                      -35.9%                  $358.07       $558.97       11/02/2021 
Norwegian Cruise Line Holdings Ltd.   NCLH                      -35.6%                   $22.22        $34.49       03/04/2021 
Citrix Systems Inc.                   CTXS                      -33.3%                   $96.82       $145.19       01/27/2021 
SolarEdge Technologies Inc.           SEDG                      -33.0%                  $261.02       $389.71       11/22/2021 
Global Payments Inc.                  GPN                       -32.6%                  $148.73       $220.81       04/26/2021 
Match Group Inc.                      MTCH                      -31.8%                  $124.08       $182.00       10/21/2021 
Ceridian HCM Holding Inc.             CDAY                      -31.0%                   $89.97       $130.37       11/03/2021 
Zimmer Biomet Holdings Inc.           ZBH                       -30.4%                  $125.58       $180.36       04/29/2021 
Southwest Airlines Co.                LUV                       -30.2%                   $45.21        $64.75       04/14/2021 
                                                                                                                    Source: FactSet 

Click on the tickers for more about each company.

Then read Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

Stocks expected to bounce back

Among the 25 decliners listed above, 12 have majority “buy” or equivalent ratings among analysts polled by FactSet. So here’s the entire list again, but sorted this time by the percentage of favorable ratings and showing how much upside potential the analysts see over the next year, based on consensus price targets:

Company                              Ticker  Share "buy" ratings  Closing price -- Jan. 12  Consensus price target  Implied 12-month upside potential 
Global Payments Inc.                  GPN                    85%                  $148.73                 $185.48                                25% 
Generac Holdings Inc.                 GNRC                   83%                  $319.00                 $511.32                                60% 
PayPal Holdings Inc.                  PYPL                   82%                  $187.20                 $265.12                                42% 
Match Group Inc.                      MTCH                   70%                  $124.08                 $172.89                                39% 
Activision Blizzard Inc.              ATVI                   70%                   $64.81                  $90.40                                39% 
Southwest Airlines Co.                LUV                    70%                   $45.21                  $56.06                                24% 
Paycom Software Inc.                  PAYC                   65%                  $358.07                 $530.33                                48% 
Enphase Energy Inc.                   ENPH                   63%                  $149.28                 $254.08                                70% 
Etsy Inc.                             ETSY                   62%                  $178.06                 $256.41                                44% 
Zimmer Biomet Holdings Inc.           ZBH                    59%                  $125.58                 $160.38                                28% 
SolarEdge Technologies Inc.           SEDG                   56%                  $261.02                 $347.73                                33% 
Penn National Gaming Inc.             PENN                   55%                   $47.44                  $76.67                                62% 
Biogen Inc.                           BIIB                   50%                  $225.34                 $297.39                                32% 
Las Vegas Sands Corp.                 LVS                    50%                   $38.95                  $49.17                                26% 
Norwegian Cruise Line Holdings Ltd.   NCLH                   50%                   $22.22                  $30.77                                38% 
Ceridian HCM Holding Inc.             CDAY                   50%                   $89.97                 $119.83                                33% 
ViacomCBS Inc. Class B                VIAC                   43%                   $34.97                  $46.65                                33% 
Moderna Inc.                          MRNA                   42%                  $222.89                 $296.00                                33% 
Discovery Inc. Class A               DISCA                   40%                   $28.79                  $39.56                                37% 
IPG Photonics Corporation             IPGP                   36%                  $165.74                 $199.22                                20% 
Wynn Resorts Ltd.                     WYNN                   31%                   $85.80                 $103.19                                20% 
Twitter Inc.                          TWTR                   28%                   $40.25                  $62.79                                56% 
Citrix Systems Inc.                   CTXS                   20%                   $96.82                  $99.08                                 2% 
Gap Inc.                              GPS                    18%                   $17.75                  $22.33                                26% 
MarketAxess Holdings Inc.             MKTX                   17%                  $371.37                 $413.00                                11% 
                                                                                                                                     Source: FactSet 

Don’t miss:These 14 bank stocks are in the best position to benefit from rising interest rates

-Philip van Doorn

 

(END) Dow Jones Newswires

01-13-22 0820ET

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