May 27, 2024

Tricia Oak

Business & Finance Excellency

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

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
SPX
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
SPY,
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.

AAPL 35.1%

6.9%

Microsoft Corp.

MSFT 53.4%

6.3%

Amazon.com Inc.

AMZN 4.8%

3.7%

Alphabet Inc. Class A

GOOGL 67.4%

2.2%

Tesla Inc.

TSLA 54.2%

2.2%

Alphabet Inc. Class C

GOOG 67.2%

2.1%

Source: FactSet

SPY and the S&P 500 include two common-share classes for Alphabet Inc.
GOOGL

GOOG
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
NDX,
comprised of the 100 largest Nasdaq-listed companies by market capitalization and tracked by the Invesco QQQ Trust
QQQ.

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

PDD -73.6%

$56.04

$212.60

02/16/2021

76%

$104.54

87%

Baidu Inc. ADR Class A

BIDU -60.3%

$140.88

$354.82

02/22/2021

83%

$232.32

65%

JD.com Inc. ADR Class A

JD -39.2%

$65.87

$108.29

02/17/2021

94%

$106.30

61%

MercadoLibre Inc.

MELI -34.8%

$1,316.28

$2,020.00

01/21/2021

87%

$2,011.00

53%

Caesars Entertainment Inc.

CZR -22.6%

$92.78

$119.81

10/01/2021

94%

$137.36

48%

Generac Holdings Inc.

GNRC -33.6%

$348.18

$524.31

11/02/2021

77%

$514.11

48%

Alaska Air Group Inc.

ALK -28.8%

$52.90

$74.25

04/07/2021

93%

$77.71

47%

PayPal Holdings Inc.

PYPL -38.7%

$190.10

$310.16

07/26/2021

84%

$273.65

44%

CrowdStrike Holdings Inc. Class A

CRWD -30.6%

$207.23

$298.48

11/10/2021

86%

$291.88

41%

Trip.com Group Ltd. ADR

TCOM -48.5%

$23.29

$45.19

03/17/2021

79%

$32.78

41%

T-Mobile US Inc.

TMUS -21.3%

$118.16

$150.20

07/16/2021

81%

$165.51

40%

Enphase Energy Inc.

ENPH -33.9%

$186.79

$282.46

11/22/2021

67%

$260.92

40%

Global Payments Inc.

GPN -38.8%

$135.15

$220.81

04/26/2021

85%

$188.41

39%

NetEase Inc. ADR

NTES -27.7%

$97.15

$134.33

02/11/2021

97%

$134.53

38%

Activision Blizzard Inc.

ATVI -36.2%

$66.67

$104.53

02/16/2021

71%

$90.86

36%

Southwest Airlines Co.

LUV -34.7%

$42.29

$64.75

04/14/2021

78%

$57.32

36%

Fidelity National Information Services Inc.

FIS -29.9%

$109.29

$155.96

04/29/2021

74%

$146.86

34%

Match Group Inc.

MTCH -27.0%

$132.94

$182.00

10/21/2021

68%

$175.11

32%

Leidos Holdings Inc.

LDOS -22.4%

$88.26

$113.75

01/25/2021

71%

$115.00

30%

WestRock Co.

WRK -28.8%

$44.19

$62.03

05/17/2021

67%

$56.92

29%

Medtronic PLC

MDT -23.1%

$104.53

$135.89

09/09/2021

85%

$134.52

29%

Teleflex Inc.

TFX -26.6%

$330.03

$449.38

04/28/2021

75%

$424.11

29%

Zimmer Biomet Holdings Inc.

ZBH -28.9%

$128.21

$180.36

04/29/2021

68%

$163.71

28%

PTC Inc.

PTC -20.4%

$122.34

$153.73

07/23/2021

71%

$156.15

28%

Phillips 66

PSX -21.6%

$73.93

$94.34

06/10/2021

79%

$93.50

26%

Boeing Co.

BA -26.0%

$206.13

$278.57

03/15/2021

73%

$259.61

26%

Okta Inc. Class A

OKTA -23.6%

$224.47

$294.00

02/12/2021

82%

$279.88

25%

Walt Disney Co.

DIS -23.6%

$155.20

$203.02

03/08/2021

70%

$193.29

25%

Corning Inc.

GLW -20.2%

$37.35

$46.82

04/26/2021

69%

$44.38

19%

Lamb Weston Holdings Inc.

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.