Nearly 40% of the S&P 500 is in a bear market. Here are 10 of those stocks that analysts say can gain up to 81%.
Summary
A significant portion of the S&P 500 currently sits in a bear market, trading down at least 20 percent from recent highs. Despite this weakness among many underlying equities, the broader index maintains strong overall performance due to heavy market capitalization weighting concentrated at the top.
The S&P 500’s strong overall performance reflects its heavy weighting at the top. Under the surface, nearly 40% of the index’s stocks are down at least 20% from their 52-week highs.
Our Take
This is the clearest sign that we're in two markets at once. The S&P 500 sits within about 1% of its record (SPY's all-time high is $781.62, and it closed Thursday at $771.79), yet the damage under the surface is real. Lately, it has been concentrated in the AI winners that carried the index: SOXX is down 12.6% from its Oct 2 close after eight straight losing sessions. Here's the twist we're watching: the equal-weight S&P 500 (RSP) closed Thursday at $215.00, its best close since Sept 8, even as chips kept sliding. Money isn't leaving stocks. It's rotating into health care, financials, materials and small caps (the Russell 2000 rose 1.4% Thursday).
For traders, that means the beaten-down names on lists like this are worth buying only when price confirms, such as a reclaim of a prior breakdown level on volume, not just because an analyst target is far away. On SPY, we're watching $772.87 (Thursday's high) and $779.35–$781.62 above, with $764.43 and $758.82 as support. An RSP breakout above $215 with SPY holding $764 would say the rally is broadening, which is healthier than one carried by a few megacaps.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at MarketWatch.com - Top Stories