Getting tired of the same old S&P 500 stocks, like Nvidia, dominating the market? You're in luck: Some beat-up stocks are now rallying in what looks like an important shift.
Six stocks, including UnitedHealth Group, Centene and Dow, that had plunged more than 20% this year through Aug. 11 have since jumped 10% or more from then, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That tops AI darling Nvidia's 1.1% slide in that time.
These are just the most dramatic examples of a "healthy rotation" taking place in the S&P 500, says Bespoke Investment Group. "We started to see rotation out of winners into losers," Bespoke found.
Moving Into S&P 500 Losers
The trend of money moving into S&P 500 losers hasn't been going on for long. But it's noteworthy.
"The decile of stocks that were performing the worst year-to-date through Aug. 11 gained an average of 6.7% from Aug. 12 through Aug. 14, while the decile of stocks that were doing the best year to date through Aug. 11 were up just 0.9%," Bespoke found.
Investors hope the S&P 500's rally broadens out to include more than just the megacaps. "A bull's dream is for the broader market to keep trending higher as investors rotate like this underneath the surface," Bespoke said.
UnitedHealth Looking Healthier
Health insurer UnitedHealth was looking sick until this week. Shares were down 39% this year though Aug. 11. But it has rallied more than 21% since then. Why? Warren Buffett's Berkshire Hathaway is now an investor.
It definitely takes courage to buy this one. UnitedHealth's RS Rating is just 7. And analysts think profit will fall 41% this year. The EPS Rating is just 59.
Centene is another health care turnaround. The health insurer's stock plunged 53% this year through Aug. 11. But it's up nearly 13% since then. It's another case of investors needing to look past some tough numbers. The RS Rating is just 2 and analysts think profit will plunge 75% this year.
Not Just Health Care
Health care is the S&P 500 sector with the most turnaround stocks. But it's not alone.
Materials firm Dow is up nearly 13% from Aug. 11. And that comes after plunging 41% this year. Dow's RS Rating has plunged to just 5. Analysts are braced for a 145% profit drop this year. But they're hoping profit springs back by 157% in 2026.
We'll see if these comebacks have lasting power or if they're just a sideshow until AI stocks take over again.
S&P 500 Rotation Champs
Biggest gains from Aug. 11 after falling this year
| Company | Ticker | % ch. YTD to Aug. 11 | % ch. Aug. 11 to Aug. 15 | Sector |
|---|---|---|---|---|
| UnitedHealth Group | UNH | -39.3% | 21.6% | Health Care |
| Centene | CNC | -53.0% | 12.8% | Health Care |
| Dow | DOW | -41.4% | 12.6% | Materials |
| Enphase Energy | ENPH | -47.1% | 11.7% | Information Technology |
| Moderna | MRNA | -32.3% | 10.6% | Health Care |
| LyondellBasell Industries | LYB | -28.2% | 10.4% | Materials |
