The S&P 500 Index has risen by 19% year-to-date, with three weeks remaining in the year and just a five percentage point gap from the all-time highs reached in January 2022.
Despite the impressive rally in the broader stock market, closely followed by the SPDR S&P 500 ETF Trust SPY, only 281 stocks comprising the index, or 56% of the total, have shown positive performance since the beginning of the year.
In other terms, 44% of S&P 500 companies took the path of retreat, a rare sight in a year when the stock market’s returns were nothing short of a feast.
Investors seeking so-called “laggards” — Goldman Sachs recently dedicated an analysis to this topic — are looking for the untapped potential hidden in S&P 500 stocks that have remained well outside the bullish eye of the market in 2023.
Hunting For Laggards In A Bullish Jungle: Top 10 S&P 500 Upside Picks
The stock that currently offers the highest upside potential compared to the median price targets set by Wall Street analysts is Moderna Inc. MRNA. Moderna is trading at $78 per share, while the one-year median price target is $127.50, representing a 58% potential upside.
Not far behind in terms of potential is First Solar Inc. FSLR, ranking second on this list with a 56% upside potential. Third, with a 52% upside, is Albemarle Corporation ALB.
Looking at the top 10, what stands out is the presence of three stocks related to hotels and casinos: Wynn Resort Ltd. WYNN, Las Vegas Sands Corp. LVS, and Caesars Entertainment Inc. CZR, with potential upsides of 48%, 45% and 43%, respectively.
Only three stocks in the top 10 have shown positive performance year-to-date, including Wynn Resort Ltd., Caesars Entertainment Inc., and Warner Bros Discovery Inc. WDB.
| Name | Industry | Last Price | Median Price Target | Target % | Price Change % (YTD) |
|---|---|---|---|---|---|
| Moderna, Inc. | Biotechnology | 78.83 | 127.50 | 58.19% | -56.44% |
| First Solar, Inc. | Semiconductors and Semiconductor Equipment | 143.66 | 227.00 | 56.24% | -4.07% |
| Albemarle Corporation | Chemicals | 122.37 | 180.00 | 52.16% | -43.56% |
| Aptiv PLC APTV | Automobile Components | 81.09 | 121.00 | 49.60% | -12.73% |
| Wynn Resorts, Limited | Hotels, Restaurants and Leisure | 83.21 | 122.00 | 48.06% | 1.13% |
| Incyte Corporation INCY | Biotechnology | 55.16 | 82.00 | 47.96% | -31.21% |
| Warner Bros. Discovery, Inc. | Entertainment | 11.09 | 16.00 | 46.52% | 16.56% |
| Las Vegas Sands Corp. | Hotels, Restaurants and Leisure | 45.09 | 65.00 | 44.99% | -5.99% |
| Caesars Entertainment, Inc. | Hotels, Restaurants and Leisure | 43.73 | 62.00 | 42.82% | 4.76% |
| Bio-Rad Laboratories, Inc. BIO | Life Sciences Tools and Services | 309.62 | 441.00 | 42.03% | -26.23% |
Look Who’s In 17th Place
Beyond the glittering top 10, there’s a basket of stocks offering compelling upside potential, ranging from 30% to 41%.
What truly raises eyebrows is the appearance of NVIDIA Corp. NVDA in the 17th position.
With a jaw-dropping year-to-date performance of 215%, Nvidia has been the star of the S&P 500 in 2023.
Wall Street’s appetite for the chipmaker giant seems insatiable. Nvidia’s median price target set by analysts, with a one-year horizon in mind, stands at $630 per share. This projection implies a rally of 38.45% from its current trading price.
Diving into the mix, we find a significant presence of stocks hailing from the energy sector.
Names like APA Corp APA, Halliburton Company HAL, Schlumberger NV SLB, and Marathon Oil Corp. MRO each flaunt an enticing 40% upside potential, while Baker Hughes Company BKR screens a 31% upside potential.
| Name | Industry | Last Price | Median Price Target | Target % | Price Change % (YTD) |
|---|---|---|---|---|---|
| APA Corporation | Oil, Gas and Consumable Fuels | 34.12 | 48.00 | 41.05% | -26.71% |
| Halliburton Company | Energy Equipment and Services | 34.80 | 49.00 | 40.56% | -11.56% |
| Schlumberger Limited | Energy Equipment and Services | 48.90 | 69.00 | 40.44% | -8.55% |
| Marathon Oil Corporation | Oil, Gas and Consumable Fuels | 23.76 | 33.00 | 40.19% | -12.19% |
| MGM Resorts International MGM | Hotels, Restaurants and Leisure | 40.12 | 55.00 | 39.70% | 19.49% |
| United Airlines Holdings, Inc. UAL | Passenger Airlines | 41.92 | 57.00 | 39.26% | 11.13% |
| NVIDIA Corporation | Semiconductors and Semiconductor Equipment | 463.05 | 630.00 | 38.45% | 215.83% |
| The Cigna Group CI | Health Care Providers and Services | 256.13 | 351.00 | 36.32% | -22.62% |
| LKQ Corporation LKQ | Distributors | 45.16 | 61.50 | 35.70% | -15.39% |
| Corteva, Inc. CTVA | Chemicals | 44.29 | 59.50 | 34.77% | -24.71% |
| Alaska Air Group, Inc. ALK | Passenger Airlines | 36.00 | 48.00 | 34.57% | -16.35% |
| BorgWarner Inc. BWA | Automobile Components | 32.95 | 44.00 | 34.43% | -17.96% |
| Align Technology, Inc. ALGN | Health Care Equipment and Supplies | 217.97 | 290.00 | 33.72% | 3.58% |
| Live Nation Entertainment, Inc. LYV | Entertainment | 82.64 | 110.00 | 33.27% | 18.32% |
| Biogen Inc. BIIB | Biotechnology | 237.89 | 311.00 | 32.98% | -14.37% |
| Baker Hughes Company | Energy Equipment and Services | 31.97 | 41.75 | 31.04% | 8.16% |
| Johnson Controls International plc JCI | Building Products | 55.22 | 72.00 | 30.81% | -13.75% |
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