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Philip van Doorn

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Sept. 25, 2021, 9:09 a.m. EDT

These stocks are in bear-market territory, but Wall Street expects them to soar as much as 68%

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By Philip van Doorn

This looks like another good year for the stock market — the benchmark S&P 500 is up 16%. But it turns out that scores of stocks are in bear-market territory. And among that beaten-down group, there are many stocks that Wall Street analysts expect to roar back.

A list of those stocks is below.

The power of index weighting

The S&P 500 /zigman2/quotes/210599714/realtime SPX +0.74% is having an excellent year, in part, because it is weighted by market capitalization. It turns out that among the 500 stocks, 96 are down this year and 99 are down at least 20% from their 52-week highs.

Now let’s look at the top five companies held by the SPDR S&P 500 ETF Trust /zigman2/quotes/209901640/composite SPY +0.77% , which tracks the S&P 500. Together, they make up nearly 23% of the ETF’s portfolio and the S&P 500 Index:

Company Price change – 2021 Share of SPY
Apple Inc. /zigman2/quotes/202934861/composite AAPL 8.1% 6.1%
Microsoft Corp. /zigman2/quotes/207732364/composite MSFT 32.5% 6.0%
Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN 2.7% 4.0%
Facebook Inc. Class A /zigman2/quotes/205064656/composite FB 30.9% 2.3%
Alphabet Inc. Class A /zigman2/quotes/202490156/composite GOOGL 58.7% 2.3%
Alphabet Inc. Class C /zigman2/quotes/202490156/composite GOOGL 59.4% 2.1%
Source: FactSet

Beloved stocks in bear markets

To broaden a list of large-cap stocks, the following screen began with the S&P 500 and the components of the Nasdaq-100 Index, which is made up of the 100 largest Nasdaq-listed companies by market capitalization. After removing duplicates, this left a list of 523 stocks.

Among the 523 stocks, 107 are in a bear market — that is, they were down at  least 20% from their 52-week highs through Sept. 21, according to data provided by FactSet.

Among the 107, there are 35 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 Decline from 52-week high Closing Price – Sept. 21 52-week high Date of 52-week high Share “buy” ratings Consensus price target Implied 12-month upside potential
Western Digital Corp. /zigman2/quotes/204213617/composite WDC -29.1% $55.47 $78.19 06/04/2021 70% $93.39 68%
Baidu Inc. ADR Class A /zigman2/quotes/209050136/composite BIDU -55.8% $156.71 $354.82 02/22/2021 86% $258.24 65%
Micron Technology Inc. /zigman2/quotes/205710729/composite MU -25.6% $72.14 $96.96 04/12/2021 88% $114.03 58%
Activision Blizzard Inc. /zigman2/quotes/200717283/composite ATVI -30.1% $73.03 $104.53 02/16/2021 94% $115.34 58%
NetEase Inc. ADR /zigman2/quotes/201683625/composite NTES -40.5% $79.95 $134.33 02/11/2021 94% $125.11 56%
News Corp. Class A /zigman2/quotes/201755982/composite NWSA -20.6% $22.21 $27.97 05/10/2021 80% $32.86 48%
General Motors Co. /zigman2/quotes/205226835/composite GM -23.2% $49.37 $64.30 06/07/2021 92% $72.79 47%
Hess Corp. /zigman2/quotes/203832174/composite HES -26.1% $67.31 $91.09 06/23/2021 67% $99.13 47%
Global Payments Inc. /zigman2/quotes/201234787/composite GPN -29.1% $156.58 $220.81 04/26/2021 81% $227.15 45%
VF Corp. /zigman2/quotes/206706147/composite VFC -27.0% $66.25 $90.79 04/29/2021 67% $95.95 45%
Pinduoduo Inc. ADR Class A /zigman2/quotes/208876581/composite PDD -55.3% $95.10 $212.60 02/16/2021 79% $136.67 44%
Diamondback Energy Inc. /zigman2/quotes/201200230/composite FANG -21.9% $80.04 $102.53 07/01/2021 91% $114.09 43%
Take-Two Interactive Software Inc. /zigman2/quotes/204008930/composite TTWO -32.2% $145.72 $214.91 02/08/2021 67% $206.82 42%
Freeport-McMoRan Inc. /zigman2/quotes/200215692/composite FCX -33.9% $30.48 $46.10 05/10/2021 72% $43.21 42%
Vertex Pharmaceuticals Inc. /zigman2/quotes/202259802/composite VRTX -33.9% $185.80 $280.99 10/13/2020 74% $260.67 40%
Alaska Air Group Inc. /zigman2/quotes/200972303/composite ALK -24.4% $56.11 $74.25 04/07/2021 93% $78.71 40%
Lamb Weston Holdings Inc. /zigman2/quotes/205501174/composite LW -29.1% $61.26 $86.41 03/08/2021 78% $85.43 39%
Eastman Chemical Co. /zigman2/quotes/200039202/composite EMN -24.0% $99.18 $130.47 06/01/2021 73% $137.90 39%
PTC Inc. /zigman2/quotes/202034776/composite PTC -22.0% $119.93 $153.73 07/23/2021 76% $165.23 38%
Fidelity National Information Services Inc. /zigman2/quotes/207166559/composite FIS -22.2% $121.38 $155.96 04/29/2021 72% $165.93 37%
Halliburton Co. /zigman2/quotes/210488727/composite HAL -22.1% $19.48 $25.00 06/04/2021 69% $26.47 36%
Stanley Black & Decker Inc. /zigman2/quotes/206369278/composite SWK -20.0% $179.89 $225.00 05/10/2021 67% $241.71 34%
Schlumberger Ltd. /zigman2/quotes/201012972/composite SLB -27.0% $26.93 $36.87 06/04/2021 80% $35.90 33%
Newmont Corp. /zigman2/quotes/205356474/composite NEM -27.6% $54.51 $75.31 05/19/2021 71% $72.65 33%
Southwest Airlines Co. /zigman2/quotes/201071949/composite LUV -24.1% $49.15 $64.75 04/14/2021 82% $65.00 32%
Valero Energy Corp. /zigman2/quotes/200735463/composite VLO -25.5% $63.32 $84.95 06/03/2021 86% $83.41 32%
Zimmer Biomet Holdings Inc. /zigman2/quotes/205473073/composite ZBH -20.8% $142.76 $180.36 04/29/2021 77% $187.58 31%
FMC Corp. /zigman2/quotes/200631712/composite FMC -24.5% $93.31 $123.66 01/13/2021 68% $122.29 31%
Cigna Corp. /zigman2/quotes/208431372/composite CI -25.8% $202.39 $272.81 05/10/2021 83% $264.73 31%
Corning Inc. /zigman2/quotes/200045496/composite GLW -20.3% $37.31 $46.82 04/26/2021 67% $48.75 31%
Leidos Holdings Inc. /zigman2/quotes/202902477/composite LDOS -20.1% $90.90 $113.75 01/25/2021 83% $117.78 30%
WestRock Co. /zigman2/quotes/202346656/composite WRK -22.3% $48.19 $62.03 05/17/2021 67% $62.31 29%
Peloton Interactive Inc. Class A /zigman2/quotes/208035743/composite PTON -41.0% $100.92 $171.09 01/14/2021 74% $129.67 28%
FedEx Corp. /zigman2/quotes/203047719/composite FDX -21.2% $252.07 $319.90 05/27/2021 75% $321.15 27%
JD.com Inc. ADR Class A /zigman2/quotes/205122565/composite JD -32.1% $73.50 $108.29 02/17/2021 94% $93.11 27%
Source: FactSet

Click on the tickers for more about each company. The data above are limited, so the MarketWatch quote page can be an excellent start for your own research. Click  here  for Tomi Kilgore’s new, detailed guide to the wealth of information available for free on the quote page.

Don’t miss: Investors who want income need to understand this overlooked stock-market strategy

/zigman2/quotes/210599714/realtime
US : S&P US
4,519.63
+33.17 +0.74%
Volume: 1.70B
Oct. 19, 2021 5:05p
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/zigman2/quotes/209901640/composite
US : U.S.: NYSE Arca
$ 450.64
+3.45 +0.77%
Volume: 47.00M
Oct. 19, 2021 4:00p
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 148.76
+2.21 +1.51%
Volume: 76.38M
Oct. 19, 2021 4:00p
P/E Ratio
29.13
Dividend Yield
0.59%
Market Cap
$2422.50 billion
Rev. per Employee
$1.86M
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 308.23
+0.94 +0.31%
Volume: 17.68M
Oct. 19, 2021 4:00p
P/E Ratio
38.27
Dividend Yield
0.80%
Market Cap
$2307.10 billion
Rev. per Employee
$928,663
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,444.15
-2.59 -0.08%
Volume: 2.39M
Oct. 19, 2021 4:00p
P/E Ratio
60.02
Dividend Yield
N/A
Market Cap
$1745.57 billion
Rev. per Employee
$297,430
loading...
/zigman2/quotes/205064656/composite
US : U.S.: Nasdaq
$ 339.99
+4.65 +1.39%
Volume: 18.79M
Oct. 19, 2021 4:00p
P/E Ratio
25.18
Dividend Yield
N/A
Market Cap
$945.47 billion
Rev. per Employee
$1.47M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 2,864.74
+9.18 +0.32%
Volume: 1.01M
Oct. 19, 2021 4:00p
P/E Ratio
31.06
Dividend Yield
N/A
Market Cap
$1905.13 billion
Rev. per Employee
$1.35M
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 2,864.74
+9.18 +0.32%
Volume: 1.01M
Oct. 19, 2021 4:00p
P/E Ratio
31.06
Dividend Yield
N/A
Market Cap
$1905.13 billion
Rev. per Employee
$1.35M
loading...
/zigman2/quotes/204213617/composite
US : U.S.: Nasdaq
$ 55.65
+0.25 +0.45%
Volume: 3.88M
Oct. 19, 2021 4:00p
P/E Ratio
21.34
Dividend Yield
0.00%
Market Cap
$17.26 billion
Rev. per Employee
$257,957
loading...
/zigman2/quotes/209050136/composite
US : U.S.: Nasdaq
$ 179.00
+7.96 +4.65%
Volume: 5.74M
Oct. 19, 2021 4:00p
P/E Ratio
9.33
Dividend Yield
N/A
Market Cap
$61.24 billion
Rev. per Employee
$378,365
loading...
/zigman2/quotes/205710729/composite
US : U.S.: Nasdaq
$ 67.57
+0.31 +0.46%
Volume: 16.93M
Oct. 19, 2021 4:00p
P/E Ratio
13.15
Dividend Yield
0.59%
Market Cap
$75.24 billion
Rev. per Employee
$644,302
loading...
/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 77.18
+0.78 +1.02%
Volume: 4.24M
Oct. 19, 2021 4:00p
P/E Ratio
23.14
Dividend Yield
0.61%
Market Cap
$59.42 billion
Rev. per Employee
$851,474
loading...
/zigman2/quotes/201683625/composite
US : U.S.: Nasdaq
$ 100.39
+2.49 +2.54%
Volume: 5.11M
Oct. 19, 2021 4:00p
P/E Ratio
37.73
Dividend Yield
0.78%
Market Cap
$64.39 billion
Rev. per Employee
$377,950
loading...
/zigman2/quotes/201755982/composite
US : U.S.: Nasdaq
$ 23.70
+0.15 +0.64%
Volume: 1.49M
Oct. 19, 2021 4:00p
P/E Ratio
42.58
Dividend Yield
0.84%
Market Cap
$13.98 billion
Rev. per Employee
$389,917
loading...
/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 56.85
-0.04 -0.07%
Volume: 10.59M
Oct. 19, 2021 4:00p
P/E Ratio
6.57
Dividend Yield
0.00%
Market Cap
$82.59 billion
Rev. per Employee
$790,226
loading...
/zigman2/quotes/203832174/composite
US : U.S.: NYSE
$ 90.10
+0.95 +1.07%
Volume: 2.00M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
1.11%
Market Cap
$27.61 billion
Rev. per Employee
$2.54M
loading...
/zigman2/quotes/201234787/composite
US : U.S.: NYSE
$ 160.99
+1.63 +1.02%
Volume: 1.44M
Oct. 19, 2021 4:00p
P/E Ratio
55.63
Dividend Yield
0.62%
Market Cap
$46.81 billion
Rev. per Employee
$309,315
loading...
/zigman2/quotes/206706147/composite
US : U.S.: NYSE
$ 73.51
+0.58 +0.80%
Volume: 2.01M
Oct. 19, 2021 4:00p
P/E Ratio
28.34
Dividend Yield
2.67%
Market Cap
$28.64 billion
Rev. per Employee
$230,906
loading...
/zigman2/quotes/208876581/composite
US : U.S.: Nasdaq
$ 97.52
+0.52 +0.54%
Volume: 6.89M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$121.57 billion
Rev. per Employee
$1.08M
loading...
/zigman2/quotes/201200230/composite
US : U.S.: Nasdaq
$ 110.94
+1.68 +1.54%
Volume: 1.69M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
1.62%
Market Cap
$19.78 billion
Rev. per Employee
$3.84M
loading...
/zigman2/quotes/204008930/composite
US : U.S.: Nasdaq
$ 172.04
+0.29 +0.17%
Volume: 925,704
Oct. 19, 2021 4:00p
P/E Ratio
30.66
Dividend Yield
N/A
Market Cap
$20.01 billion
Rev. per Employee
$519,287
loading...
/zigman2/quotes/200215692/composite
US : U.S.: NYSE
$ 38.85
+0.31 +0.80%
Volume: 16.54M
Oct. 19, 2021 4:02p
P/E Ratio
20.28
Dividend Yield
0.77%
Market Cap
$56.58 billion
Rev. per Employee
$566,204
loading...
/zigman2/quotes/202259802/composite
US : U.S.: Nasdaq
$ 185.41
+4.61 +2.55%
Volume: 2.01M
Oct. 19, 2021 4:00p
P/E Ratio
24.48
Dividend Yield
N/A
Market Cap
$46.90 billion
Rev. per Employee
$1.83M
loading...
/zigman2/quotes/200972303/composite
US : U.S.: NYSE
$ 56.94
-0.48 -0.84%
Volume: 1.72M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.19 billion
Rev. per Employee
$162,113
loading...
/zigman2/quotes/205501174/composite
US : U.S.: NYSE
$ 55.95
+0.45 +0.81%
Volume: 958,826
Oct. 19, 2021 4:02p
P/E Ratio
31.86
Dividend Yield
1.68%
Market Cap
$8.11 billion
Rev. per Employee
$470,628
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/zigman2/quotes/200039202/composite
US : U.S.: NYSE
$ 107.24
+0.26 +0.24%
Volume: 801,718
Oct. 19, 2021 4:03p
P/E Ratio
45.99
Dividend Yield
2.57%
Market Cap
$14.53 billion
Rev. per Employee
$583,724
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/zigman2/quotes/202034776/composite
US : U.S.: Nasdaq
$ 129.01
+4.05 +3.24%
Volume: 793,333
Oct. 19, 2021 4:00p
P/E Ratio
64.15
Dividend Yield
N/A
Market Cap
$14.67 billion
Rev. per Employee
$233,608
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/zigman2/quotes/207166559/composite
US : U.S.: NYSE
$ 124.05
+1.02 +0.83%
Volume: 1.73M
Oct. 19, 2021 4:02p
P/E Ratio
875.44
Dividend Yield
1.26%
Market Cap
$75.99 billion
Rev. per Employee
$202,452
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/zigman2/quotes/210488727/composite
US : U.S.: NYSE
$ 26.10
+0.09 +0.35%
Volume: 14.84M
Oct. 19, 2021 4:00p
P/E Ratio
161.61
Dividend Yield
0.69%
Market Cap
$23.14 billion
Rev. per Employee
$361,125
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/zigman2/quotes/206369278/composite
US : U.S.: NYSE
$ 184.32
+1.60 +0.88%
Volume: 872,761
Oct. 19, 2021 4:00p
P/E Ratio
16.59
Dividend Yield
1.71%
Market Cap
$29.78 billion
Rev. per Employee
$273,721
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/zigman2/quotes/201012972/composite
US : U.S.: NYSE
$ 34.54
+0.38 +1.11%
Volume: 10.42M
Oct. 19, 2021 4:00p
P/E Ratio
47.97
Dividend Yield
1.45%
Market Cap
$47.77 billion
Rev. per Employee
$274,430
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/zigman2/quotes/205356474/composite
US : U.S.: NYSE
$ 56.99
+0.61 +1.08%
Volume: 4.44M
Oct. 19, 2021 4:00p
P/E Ratio
15.95
Dividend Yield
3.86%
Market Cap
$45.05 billion
Rev. per Employee
$410,683
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/zigman2/quotes/201071949/composite
US : U.S.: NYSE
$ 49.38
-0.39 -0.78%
Volume: 6.54M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$29.45 billion
Rev. per Employee
$160,142
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/zigman2/quotes/200735463/composite
US : U.S.: NYSE
$ 80.15
+2.02 +2.59%
Volume: 3.56M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
4.89%
Market Cap
$31.94 billion
Rev. per Employee
$6.51M
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/zigman2/quotes/205473073/composite
US : U.S.: NYSE
$ 148.92
+3.95 +2.72%
Volume: 1.02M
Oct. 19, 2021 4:03p
P/E Ratio
34.05
Dividend Yield
0.64%
Market Cap
$30.28 billion
Rev. per Employee
$351,225
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/zigman2/quotes/200631712/composite
US : U.S.: NYSE
$ 92.18
+0.13 +0.14%
Volume: 676,323
Oct. 19, 2021 4:02p
P/E Ratio
21.99
Dividend Yield
2.08%
Market Cap
$11.85 billion
Rev. per Employee
$725,328
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/zigman2/quotes/208431372/composite
US : U.S.: NYSE
$ 206.63
+2.06 +1.01%
Volume: 1.15M
Oct. 19, 2021 4:00p
P/E Ratio
9.09
Dividend Yield
1.94%
Market Cap
$69.58 billion
Rev. per Employee
$2.18M
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/zigman2/quotes/200045496/composite
US : U.S.: NYSE
$ 37.91
+0.09 +0.24%
Volume: 2.65M
Oct. 19, 2021 4:02p
P/E Ratio
37.54
Dividend Yield
2.53%
Market Cap
$32.30 billion
Rev. per Employee
$225,703
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/zigman2/quotes/202902477/composite
US : U.S.: NYSE
$ 99.69
0.00 0.00%
Volume: 370,957
Oct. 19, 2021 4:03p
P/E Ratio
19.53
Dividend Yield
1.44%
Market Cap
$14.11 billion
Rev. per Employee
$315,308
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/zigman2/quotes/202346656/composite
US : U.S.: NYSE
$ 48.20
+0.44 +0.92%
Volume: 1.81M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
1.99%
Market Cap
$12.75 billion
Rev. per Employee
$356,568
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/zigman2/quotes/208035743/composite
US : U.S.: Nasdaq
$ 88.19
+0.54 +0.62%
Volume: 4.02M
Oct. 19, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$26.34 billion
Rev. per Employee
$464,304
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/zigman2/quotes/203047719/composite
US : U.S.: NYSE
$ 229.32
+1.34 +0.59%
Volume: 2.09M
Oct. 19, 2021 4:00p
P/E Ratio
15.11
Dividend Yield
1.31%
Market Cap
$60.56 billion
Rev. per Employee
$289,945
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/zigman2/quotes/205122565/composite
US : U.S.: Nasdaq
$ 84.91
+2.49 +3.02%
Volume: 11.38M
Oct. 19, 2021 4:00p
P/E Ratio
25.01
Dividend Yield
N/A
Market Cap
$125.24 billion
Rev. per Employee
$343,125
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