Navigating The S&P 500 Landscape: Here Are The Stocks Analysts Believe Have The Highest Potential And Biggest Downside

In the middle of the AI revolution and the Federal Reserve's steadfast stance on interest rates, the stock market has seen unexpected twists and turns. Despite hopes of the U.S. sidestepping a potential recession, the stock market's trajectory remains unpredictable.

BofA's Take on Old Economy Stocks

This week, BofA made headlines by endorsing "old economy" giants, suggesting that blue-chip powerhouses like NVIDIA Corporation (NASDAQ: NVDA) and Meta Platforms, Inc. (NASDAQ: META) could be the torchbearers propelling the S&P 500 forward while capitalizing on the AI wave, according to a note by Reuters.

S&P 500's Current Stand

Currently, the S&P 500 is wrestling with a decline of nearly 3% from June 30, standing at 4,320.06.

Bullish Predictions Amidst Market Volatility?

Amid market turbulence, a chorus of industry gurus have belted out a bullish tune, forecasting a 19% ascent in the S&P 500's price within the next year, as highlighted by FactSet's insights. Its latest bottom-up target price for the S&P 500? A scorching 5152.11.

Spotlight on Sectoral Growth

Breaking down the data sector-wise, the information technology (+22.8%), consumer discretionary (+22.7%) and real estate (+22.6%) sectors are poised for the most significant price hikes, as noted by FactSet. 

Conversely, the energy sector, with a projected increase of just +10.7%, is anticipated to witness the least growth, the report added.

Company-Level Insights

FactSet researched around 20 stocks with the most significant differences in the S&P 500 list, predicting the largest upside and downside differences between their median target price and closing price. 

We refined a few stocks based their research on the S&P 500 list and compared the stocks' latest price target with the last close on Friday, Sept. 22. 

Four Firms with Upside Potential

Four significant companies with chances of solid growth were highlighted in FactSet's research. 

All the companies below have price targets significantly higher than the most recent closing price.

SolarEdge Technologies, Inc.'s (NASDAQ: SEDG) price target was lowered by JP Morgan analyst Mark Strouse to $299 from $335 on Sept. 15. Although the target was cut, the difference between the target price and the company's last close of $134.69 is a whopping 122%.

Insulet Corporation's (NASDAQ: PODD) price target was lowered by Raymond James analyst Jayson Bedford to $228 from $299 on Sept. 15. The difference between the target price and the company's last close of $155.70 is 46.43%.

DexCom, Inc.'s (NASDAQ: DXCM) price target was lowered by Raymond James analyst Jayson Bedford to $131 from $154 on Sept. 15. The difference between the target price and the company's last close of $87.68 is 49.40%.

FMC Corporation's (NYSE: FMC) price target was lowered by Morgan Stanley analyst Vincent Andrews to $100 from $110. The difference between the target price and the company's last close of $68.39 is 46.22%.

Four Firms Facing Downside Risks

In the bottom four batch, all the companies' price targets are lower than their most recent closing price. This could be based on various factors, including the company's financial health, industry trends, or broader economic conditions.

Expeditors International Of Washington, Inc.'s (NASDAQ: EXPD) price target was raised by Morgan Stanley analyst Ravi Shanker from $84 to $86 on Aug. 14. The difference between the target price and the company's last close of $113.91 is -24.5%.

Tyson Foods, Inc.'s (NYSE: TSN) coverage was initiated by HSBC analyst Alejandro Zamacona with a price target of $49 on Sept. 22. The difference between the target price and the company's last close of $51.12 is -2.19%.

Consolidated Edison, Inc.'s (NYSE: ED) price target was raised by Morgan Stanley analyst David Arcaro to $75 from $73 on Sept. 21. The difference between the target price and the company's last close of $90.83 is -17.42%.

Progressive Corporation's (NYSE: PGR) price target was raised by Morgan Stanley analyst Michael Phillips to $124 from $114 on Sept. 18. The difference between the target price and the company's last close of $143.26 is -13.44%.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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