As the end of the year approaches, investors should keep an eye on the 2024 laggards, whose fortunes may change in 2025. All three major indexes set new intraday and closing records for the month. Each of these benchmarks has posted impressive gains so far this year. The tech-heavy Nasdaq has soared more than 30% this year. The S&P 500 and Dow Jones Industrial Average rose more than 24% and about 13% respectively. To be sure, some stocks haven’t performed that well and may rebound in the new year. With just two trading days left before the start of the new year, CNBC Pro used its Stock Screener tool to screen for S&P 500 stocks that could recover next year. The criteria are as follows: Share price has fallen this year and will rise 20% by 2025 according to consensus analyst forecasts Have more than low debt (debt-to-equity ratio below 50%) Has a history of strong earnings growth (earnings growth of 5% per year for at least the past five years) %) ConocoPhillips has fallen more than 16% year to date, putting the stock in the top half of this year’s worst-performing stocks. But analysts believe that may change in the coming months, predicting a rise of about 38%. Jefferies, which has a buy rating on the stock, recently named ConocoPhillips its top pick for next year, noting that the company has been lagging its U.S. peers. Beyond that, analysts believe the Texas-based oil company could be a beneficiary of President-elect Trump’s expected policy changes, such as an expanded drilling program. Analyst Lloyd Byrne said in a note to clients: “We believe COP has the longest oil-weighted asset duration within our E&P business and has strong Downside protection from the balance sheet. “COP is our top pick in 25 as management/investors are expected to focus on sustainable (free cash flow) yields and we think the market is wrong as the company approaches 26 capitalization Expenditure reduction to achieve key growth projects.” Goldman Sachs said trade policies under Trump’s second term may also significantly benefit the domestic steel industry. This is an area where Nucor may be ready to turn a profit. The stock has fallen more than 33% in 2024, and analysts expect a gain of nearly 31% going forward. NUE YTD mountain NUE, YTD Goldman Sachs earlier this month initiated a buy rating on the steelmaker, saying it is “well-positioned to take advantage of any incremental steel demand, such as expected rapid growth in data centers.” . Goldman Sachs joins 23 other Wall Street firms in having a strong buy or buy rating on the stock, according to London Stock Exchange Group (LSEG) data. The remaining four reporters have a Hold rating. Analysts are also bullish on Regeneron Pharmaceuticals, with 19 of 28 analysts covering the biotech stock giving it a buy rating, according to LSEG. Eight of them have hold ratings. Notably, Regeneron is one of two names in the screen with over 50% upside potential. In 2024, the stock price will retrace more than 19%. Going forward, the company may see more positive results from some of the treatments it’s developing. The company recently announced positive Phase 2 results for two monoclonal antibodies designed to control thrombosis, a condition in which blood clots block blood flow. The treatments will now enter a Phase 3 program, expected to begin in early 2025.
These S&P 500 comebacks are primed for a rebound in 2025: Wall Street | Real Time Headlines
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