Savvy investors know that buying leading growth stocks is the best way to profit long term. But right now, there's a rush to buy the dip in the S&P 500.
Analysts say nine beaten-down S&P 500 stocks, including Moderna, UnitedHealth and Halliburton, stand to rocket 30% or more in 12 months, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. All these stocks are still down 20% or more this year.
Now that President Donald Trump is backing away from tariffs, many investors are looking for opportunities again. "The larger-than-expected drop in the tariffs between the U.S. and China, while temporary, and the establishment of a framework for continued discussion, is exactly what the stock market was hoping to see, said Carol Schleif, chief market strategist, BMO Private Wealth.
Looking For Big Biotech Wins In The S&P 500
Moderna, a maker of high tech vaccines, is the buy-the-dip darling. Shares are down a punishing 38% this year to 24.70. And yet, analysts remain bullish. They think the stock will trade for 46.96 in 12 months. If that's right, it's a gain of nearly 83%.
It's definitely a long shot based on the charts. The RS Rating is just 6. And analysts think earnings will fall 9% this year.
In another health care play, analysts think insurer UnitedHealth will gain 45% in 12 months. The shares are down 25% this year. It's another buy and a prayer stock. The RS Rating is just 11. And analysts think earnings will fall 5% this year.
Again, it can't be stressed enough that the top S&P 500 stocks over time are the leaders. But if you're going to risk it and buy the dip, these are the plays analysts like most.
Analysts' 'Buy The Dip' Favorites
All down 20% or more this year, seen jumping 30%-plus in 12 months
| Company | Ticker | YTD % Ch. | Sector | Implied Upside |
|---|---|---|---|---|
| Moderna | MRNA | -38.2% | Health Care | 82.7% |
| UnitedHealth Group | UNH | -25.1% | Health Care | 44.6% |
| Alexandria Real Estate Equities | ARE | -23.9% | Real Estate | 44.5% |
| Halliburton | HAL | -21.8% | Energy | 38.1% |
| Albemarle | ALB | -28.5% | Materials | 35.1% |
| Norwegian Cruise Line | NCLH | -25.6% | Consumer Discretionary | 32.2% |
| Viatris | VTRS | -28.0% | Health Care | 31.1% |
| Deckers Outdoor | DECK | -37.9% | Consumer Discretionary | 30.1% |
| Bio-Techne | TECH | -25.2% | Health Care | 30.1% |
