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Philip van Doorn

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Jan. 3, 2022, 9:20 a.m. EST

These stocks are down at least 20% from 2021 highs, but Wall Street sees them gaining as much as 87% in 2022

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By Philip van Doorn

This has been a remarkable year for stocks, but it may surprise you how many are in bear-market territory, usually defined as a decline of at least 20%.

Among a large group of beaten-down stocks, analysts working for brokerage firms expect dozens to soar in 2022. See them below.

A solid 2021, but look at the cap-weighting

The benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX +2.39% has risen 27.4% during 2021, following a 16.3% in 2020 — two years of pandemic and two years of double-digit gains. (All price changed in this article exclude dividends.)

You probably know the S&P 500 is weighted by market capitalization, but you might not be aware of how extreme the weighting can be. Take a look at the weighting and performance of the top five companies held by the SPDR S&P 500 ETF Trust /zigman2/quotes/209901640/composite SPY +2.39% , which tracks the S&P 500. Together, they make up 23% of the fund’s portfolio and the index:

Company Ticker Price change – 2021 Share of SPY
Apple Inc. /zigman2/quotes/202934861/composite AAPL 35.1% 6.9%
Microsoft Corp. /zigman2/quotes/207732364/composite MSFT 53.4% 6.3%
Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN 4.8% 3.7%
Alphabet Inc. Class A /zigman2/quotes/202490156/composite GOOGL 67.4% 2.2%
Tesla Inc. /zigman2/quotes/203558040/composite TSLA 54.2% 2.2%
Alphabet Inc. Class C /zigman2/quotes/205453964/composite GOOG 67.2% 2.1%
Source: FactSet

SPY and the S&P 500 include two common-share classes for Alphabet Inc. /zigman2/quotes/202490156/composite GOOGL +2.84% /zigman2/quotes/205453964/composite GOOG +2.96% and two apiece for four other companies, for a total of 505 stocks.

Stocks in bear markets that analysts love

For a broader list of large-cap stocks listed in the U.S., including those of some of China’s biggest internet players, we added the components of the Nasdaq-100 Index /zigman2/quotes/210598364/realtime NDX +3.70% , comprised of the 100 largest Nasdaq-listed companies by market capitalization and tracked by the Invesco QQQ Trust /zigman2/quotes/208575548/composite QQQ +3.71% .

After removing duplicates, this left a list of 529 stocks.

Within in the group, 94 are in a bear market — that is, they were down at least 20% from their 2021 intraday highs through Dec. 28, according to data provided by FactSet.

Among the 94, there are 30 with “buy” or equivalent ratings from at least two-thirds of analysts polled by FactSet. Here they are, sorted by the 12-month upside potential implied by the consensus price targets:

Company Ticker Decline from 2021 high Closing price – Dec. 28 2021 high Date of 2021 high Share “buy” ratings Consensus price target Implied 12-month upside potential
Pinduoduo Inc. ADR Class A /zigman2/quotes/208876581/composite PDD -73.6% $56.04 $212.60 02/16/2021 76% $104.54 87%
Baidu Inc. ADR Class A /zigman2/quotes/209050136/composite BIDU -60.3% $140.88 $354.82 02/22/2021 83% $232.32 65%
JD.com Inc. ADR Class A /zigman2/quotes/205122565/composite JD -39.2% $65.87 $108.29 02/17/2021 94% $106.30 61%
MercadoLibre Inc. /zigman2/quotes/200678442/composite MELI -34.8% $1,316.28 $2,020.00 01/21/2021 87% $2,011.00 53%
Caesars Entertainment Inc. /zigman2/quotes/205281174/composite CZR -22.6% $92.78 $119.81 10/01/2021 94% $137.36 48%
Generac Holdings Inc. /zigman2/quotes/208144117/composite GNRC -33.6% $348.18 $524.31 11/02/2021 77% $514.11 48%
Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK -28.8% $52.90 $74.25 04/07/2021 93% $77.71 47%
PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL -38.7% $190.10 $310.16 07/26/2021 84% $273.65 44%
CrowdStrike Holdings Inc. Class A /zigman2/quotes/212513426/composite CRWD -30.6% $207.23 $298.48 11/10/2021 86% $291.88 41%
Trip.com Group Ltd. ADR /zigman2/quotes/210510831/composite TCOM -48.5% $23.29 $45.19 03/17/2021 79% $32.78 41%
T-Mobile US Inc. /zigman2/quotes/204659678/composite TMUS -21.3% $118.16 $150.20 07/16/2021 81% $165.51 40%
Enphase Energy Inc. /zigman2/quotes/207948472/composite ENPH -33.9% $186.79 $282.46 11/22/2021 67% $260.92 40%
Global Payments Inc. /zigman2/quotes/201234787/composite GPN -38.8% $135.15 $220.81 04/26/2021 85% $188.41 39%
NetEase Inc. ADR /zigman2/quotes/201683625/composite NTES -27.7% $97.15 $134.33 02/11/2021 97% $134.53 38%
Activision Blizzard Inc. /zigman2/quotes/200717283/composite ATVI -36.2% $66.67 $104.53 02/16/2021 71% $90.86 36%
Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV -34.7% $42.29 $64.75 04/14/2021 78% $57.32 36%
Fidelity National Information Services Inc. /zigman2/quotes/207166559/composite FIS -29.9% $109.29 $155.96 04/29/2021 74% $146.86 34%
Match Group Inc. /zigman2/quotes/207178501/composite MTCH -27.0% $132.94 $182.00 10/21/2021 68% $175.11 32%
Leidos Holdings Inc. /zigman2/quotes/202902477/composite LDOS -22.4% $88.26 $113.75 01/25/2021 71% $115.00 30%
WestRock Co. /zigman2/quotes/202346656/composite WRK -28.8% $44.19 $62.03 05/17/2021 67% $56.92 29%
Medtronic PLC /zigman2/quotes/206816578/composite MDT -23.1% $104.53 $135.89 09/09/2021 85% $134.52 29%
Teleflex Inc. /zigman2/quotes/209322043/composite TFX -26.6% $330.03 $449.38 04/28/2021 75% $424.11 29%
Zimmer Biomet Holdings Inc. /zigman2/quotes/205473073/composite ZBH -28.9% $128.21 $180.36 04/29/2021 68% $163.71 28%
PTC Inc. /zigman2/quotes/202034776/composite PTC -20.4% $122.34 $153.73 07/23/2021 71% $156.15 28%
Phillips 66 /zigman2/quotes/207448059/composite PSX -21.6% $73.93 $94.34 06/10/2021 79% $93.50 26%
Boeing Co. /zigman2/quotes/208579720/composite BA -26.0% $206.13 $278.57 03/15/2021 73% $259.61 26%
Okta Inc. Class A /zigman2/quotes/210420951/composite OKTA -23.6% $224.47 $294.00 02/12/2021 82% $279.88 25%
Walt Disney Co. /zigman2/quotes/203410047/composite DIS -23.6% $155.20 $203.02 03/08/2021 70% $193.29 25%
Corning Inc. /zigman2/quotes/200045496/composite GLW -20.2% $37.35 $46.82 04/26/2021 69% $44.38 19%
Lamb Weston Holdings Inc. /zigman2/quotes/205501174/composite LW -28.0% $62.22 $86.41 03/08/2021 78% $73.29 18%
Source: FactSet

You can click the tickers for more about each company. Click  here  for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

/zigman2/quotes/210599714/realtime
US : S&P US
4,023.89
+93.81 +2.39%
Volume: 2.54B
May 13, 2022 4:57p
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/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 401.72
+9.38 +2.39%
Volume: 104.17M
May 13, 2022 4:00p
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 147.11
+4.55 +3.19%
Volume: 113.99M
May 13, 2022 4:00p
P/E Ratio
23.91
Dividend Yield
0.63%
Market Cap
$2381.00 billion
Rev. per Employee
$2.51M
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 261.12
+5.77 +2.26%
Volume: 34.93M
May 13, 2022 4:00p
P/E Ratio
27.24
Dividend Yield
0.95%
Market Cap
$1952.93 billion
Rev. per Employee
$1.06M
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,261.10
+122.49 +5.73%
Volume: 4.68M
May 13, 2022 4:00p
P/E Ratio
54.53
Dividend Yield
N/A
Market Cap
$1150.27 billion
Rev. per Employee
$297,107
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/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 2,321.01
+64.13 +2.84%
Volume: 1.75M
May 13, 2022 4:00p
P/E Ratio
20.99
Dividend Yield
N/A
Market Cap
$1531.40 billion
Rev. per Employee
$1.72M
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/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 769.59
+41.59 +5.71%
Volume: 30.72M
May 13, 2022 4:00p
P/E Ratio
104.43
Dividend Yield
N/A
Market Cap
$797.30 billion
Rev. per Employee
$626,347
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/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 2,330.31
+67.09 +2.96%
Volume: 1.49M
May 13, 2022 4:00p
P/E Ratio
21.08
Dividend Yield
N/A
Market Cap
$1531.40 billion
Rev. per Employee
$1.72M
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/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 2,321.01
+64.13 +2.84%
Volume: 1.75M
May 13, 2022 4:00p
P/E Ratio
20.99
Dividend Yield
N/A
Market Cap
$1531.40 billion
Rev. per Employee
$1.72M
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/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 2,330.31
+67.09 +2.96%
Volume: 1.49M
May 13, 2022 4:00p
P/E Ratio
21.08
Dividend Yield
N/A
Market Cap
$1531.40 billion
Rev. per Employee
$1.72M
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/zigman2/quotes/210598364/realtime
US : U.S.: Nasdaq
12,387.40
+441.90 +3.70%
Volume: 938,530
May 13, 2022 5:16p
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/zigman2/quotes/208575548/composite
US : U.S.: Nasdaq
$ 301.94
+10.79 +3.71%
Volume: 83.68M
May 13, 2022 4:15p
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/zigman2/quotes/208876581/composite
US : U.S.: Nasdaq
$ 37.72
+3.49 +10.20%
Volume: 9.40M
May 13, 2022 4:00p
P/E Ratio
46.69
Dividend Yield
N/A
Market Cap
$47.69 billion
Rev. per Employee
$1.49M
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/zigman2/quotes/209050136/composite
US : U.S.: Nasdaq
$ 116.94
+9.06 +8.40%
Volume: 3.36M
May 13, 2022 4:00p
P/E Ratio
25.78
Dividend Yield
N/A
Market Cap
$39.99 billion
Rev. per Employee
$424,245
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/zigman2/quotes/205122565/composite
US : U.S.: Nasdaq
$ 51.55
+2.88 +5.92%
Volume: 11.58M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$77.69 billion
Rev. per Employee
$382,887
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/zigman2/quotes/200678442/composite
US : U.S.: Nasdaq
$ 794.96
+72.03 +9.96%
Volume: 873,406
May 13, 2022 4:00p
P/E Ratio
217.51
Dividend Yield
N/A
Market Cap
$40.05 billion
Rev. per Employee
$265,012
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/zigman2/quotes/205281174/composite
US : U.S.: Nasdaq
$ 54.99
+5.16 +10.36%
Volume: 5.46M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.79 billion
Rev. per Employee
$205,510
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/zigman2/quotes/208144117/composite
US : U.S.: NYSE
$ 226.49
+12.46 +5.82%
Volume: 879,041
May 13, 2022 4:00p
P/E Ratio
29.99
Dividend Yield
N/A
Market Cap
$14.46 billion
Rev. per Employee
$426,164
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/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 46.15
+1.54 +3.45%
Volume: 2.04M
May 13, 2022 4:00p
P/E Ratio
12.60
Dividend Yield
0.00%
Market Cap
$5.82 billion
Rev. per Employee
$309,202
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 78.83
+4.54 +6.11%
Volume: 17.11M
May 13, 2022 4:00p
P/E Ratio
26.06
Dividend Yield
N/A
Market Cap
$91.29 billion
Rev. per Employee
$838,349
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/zigman2/quotes/212513426/composite
US : U.S.: Nasdaq
$ 156.29
+16.48 +11.79%
Volume: 6.24M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$36.07 billion
Rev. per Employee
$292,365
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/zigman2/quotes/210510831/composite
US : U.S.: Nasdaq
$ 20.88
+1.39 +7.13%
Volume: 7.12M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$12.85 billion
Rev. per Employee
$92,039
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/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 126.33
+2.30 +1.85%
Volume: 3.89M
May 13, 2022 4:00p
P/E Ratio
56.51
Dividend Yield
N/A
Market Cap
$158.37 billion
Rev. per Employee
$1.07M
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/zigman2/quotes/207948472/composite
US : U.S.: Nasdaq
$ 157.79
+16.85 +11.96%
Volume: 3.09M
May 13, 2022 4:00p
P/E Ratio
134.42
Dividend Yield
N/A
Market Cap
$21.31 billion
Rev. per Employee
$673,269
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/zigman2/quotes/201234787/composite
US : U.S.: NYSE
$ 122.20
+4.38 +3.72%
Volume: 1.50M
May 13, 2022 4:00p
P/E Ratio
34.98
Dividend Yield
0.82%
Market Cap
$34.40 billion
Rev. per Employee
$347,600
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/zigman2/quotes/201683625/composite
US : U.S.: Nasdaq
$ 92.46
+4.50 +5.12%
Volume: 2.03M
May 13, 2022 4:00p
P/E Ratio
23.77
Dividend Yield
1.25%
Market Cap
$55.84 billion
Rev. per Employee
$423,643
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/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 77.74
+0.36 +0.47%
Volume: 4.68M
May 13, 2022 4:00p
P/E Ratio
24.61
Dividend Yield
0.60%
Market Cap
$60.78 billion
Rev. per Employee
$846,633
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/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 42.99
+0.66 +1.56%
Volume: 5.14M
May 13, 2022 4:00p
P/E Ratio
45.55
Dividend Yield
0.00%
Market Cap
$25.49 billion
Rev. per Employee
$334,519
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/zigman2/quotes/207166559/composite
US : U.S.: NYSE
$ 96.50
+2.55 +2.71%
Volume: 2.37M
May 13, 2022 4:03p
P/E Ratio
65.60
Dividend Yield
1.95%
Market Cap
$58.94 billion
Rev. per Employee
$217,631
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/zigman2/quotes/207178501/composite
US : U.S.: Nasdaq
$ 77.51
+4.03 +5.48%
Volume: 2.88M
May 13, 2022 4:00p
P/E Ratio
86.67
Dividend Yield
N/A
Market Cap
$22.14 billion
Rev. per Employee
$1.23M
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/zigman2/quotes/202902477/composite
US : U.S.: NYSE
$ 101.64
+1.07 +1.06%
Volume: 518,255
May 13, 2022 4:04p
P/E Ratio
19.97
Dividend Yield
1.42%
Market Cap
$13.89 billion
Rev. per Employee
$323,628
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/zigman2/quotes/202346656/composite
US : U.S.: NYSE
$ 46.21
-1.25 -2.63%
Volume: 4.45M
May 13, 2022 4:00p
P/E Ratio
15.58
Dividend Yield
2.16%
Market Cap
$11.78 billion
Rev. per Employee
$405,633
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/zigman2/quotes/206816578/composite
US : U.S.: NYSE
$ 102.67
+1.56 +1.54%
Volume: 3.53M
May 13, 2022 4:00p
P/E Ratio
28.30
Dividend Yield
2.45%
Market Cap
$137.74 billion
Rev. per Employee
$353,167
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/zigman2/quotes/209322043/composite
US : U.S.: NYSE
$ 278.46
+9.56 +3.56%
Volume: 386,539
May 13, 2022 4:04p
P/E Ratio
27.08
Dividend Yield
0.49%
Market Cap
$13.06 billion
Rev. per Employee
$201,239
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/zigman2/quotes/205473073/composite
US : U.S.: NYSE
$ 115.07
+1.97 +1.74%
Volume: 1.17M
May 13, 2022 4:04p
P/E Ratio
111.69
Dividend Yield
0.83%
Market Cap
$24.12 billion
Rev. per Employee
$392,410
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/zigman2/quotes/202034776/composite
US : U.S.: Nasdaq
$ 109.55
+3.23 +3.04%
Volume: 1.36M
May 13, 2022 4:00p
P/E Ratio
27.08
Dividend Yield
N/A
Market Cap
$12.81 billion
Rev. per Employee
$280,112
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/zigman2/quotes/207448059/composite
US : U.S.: NYSE
$ 94.60
+3.41 +3.74%
Volume: 3.33M
May 13, 2022 4:00p
P/E Ratio
16.49
Dividend Yield
4.10%
Market Cap
$45.51 billion
Rev. per Employee
$9.06M
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/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 127.20
+4.06 +3.30%
Volume: 20.89M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$75.26 billion
Rev. per Employee
$430,000
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/zigman2/quotes/210420951/composite
US : U.S.: Nasdaq
$ 97.70
+10.01 +11.42%
Volume: 3.39M
May 13, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$15.31 billion
Rev. per Employee
$258,489
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/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 107.33
+3.02 +2.90%
Volume: 16.78M
May 13, 2022 4:03p
P/E Ratio
74.00
Dividend Yield
0.00%
Market Cap
$195.41 billion
Rev. per Employee
$408,500
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/zigman2/quotes/200045496/composite
US : U.S.: NYSE
$ 35.54
+0.33 +0.94%
Volume: 4.05M
May 13, 2022 4:03p
P/E Ratio
28.45
Dividend Yield
3.04%
Market Cap
$30.02 billion
Rev. per Employee
$236,111
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/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 63.53
+2.09 +3.40%
Volume: 1.25M
May 13, 2022 4:04p
P/E Ratio
39.63
Dividend Yield
1.54%
Market Cap
$9.18 billion
Rev. per Employee
$506,833
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