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These stocks have led the way since the market bottom and Wall Street says they have further to run


The market had a tough run during the first half of 2022 as stocks hit sell-off mode in the face of rising inflation and higher interest rates. But stocks have rallied in recent weeks from their June 16 lows, with all the major averages on Friday finishing out their best month since 2020 . In July, the Dow Industrial Average rose 6.7%, while the S & P 500 and Nasdaq Composite soared 9.1% and 12.4%, respectively. Faster inflation and an aggressive Federal Reserve were the force behind much of the first-half bear market. And, while fears of an ever more aggressive Fed have begun to wane a bit, concerns about slower economic growth, if not outright recession, and central bank policy persist despite last month’s rebound. That said, investors looking for opportunities may find value in some beaten-up names that led the recent bounce and stand to gain more. To find these possible rebound leaders, CNBC screened for names that fell at least 20% from the start of 2022 through June 16 and have posted the largest gains since those lows. All the names are loved by analysts and have more room to run, based on consensus price targets. Here are the top 20 companies that met that criteria: United Rentals gained the most on the list in the weeks since June 16, with shares skyrocketing 31.4% after falling 26.1%. Consensus price targets suggest the stock could rally another 21.4% from here. A host of beaten-up tech stocks, including Amazon , also surfaced. Shares of the e-commerce leader have rebounded more than 30% since June 16 after plummeting almost 38% in the year up to that point. The battered technology behemoth’s stock jumped 10% on Friday after topping revenue estimates in the second quarter and giving optimistic guidance for the current three months. In fintech, PayPal , which has seen its shares tumble more than 70% from its 52-week high, also made the cut. The payment stock lost more than half its value through June 16, falling 62%. The shares have since bounced back 21.5% since the market bottom. Semiconductor and chip stocks have come under pressure as the sector grapples with ongoing supply chain woes and a potential slowdown in consumer spending. While shares of Qualcomm dropped nearly 34% through June 16, the chip stock has rebounded more than 20% in the weeks since. In its recent quarterly earnings report, Qualcomm topped estimates on the top and bottom lines but shared weaker-than-expected guidance for the current period. Based on the consensus price target, shares could rally nearly 34% from here. Applied Materials also made the list. Other names that emerged included Boeing and casino stocks Caesars Entertainment and Penn National Gaming .

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