S&P 500 bulls aim for new all-time highs on Tuesday. However, some stocks in the index are clearly “laggards”. What are the best opportunities among S&P 500 stocks that have yet to benefit from the rally?
At the time of writing, futures are pointing to a higher open for this Tuesday following the long Memorial Day weekend.
The American stock index could therefore reach new records, supported by growing diplomatic optimism around the Iran-United States conflict.
After making encouraging comments over the weekend, President Donald Trump said Monday on Truth Social that negotiations with Iran are progressing positively.
Meanwhile, reports indicate that an Iranian delegation visited Doha to hold talks with Qatari officials regarding discussions around the Strait of Hormuz. Markets are increasingly hopeful for a deal that could help reopen the main shipping route, which handles about 20% of the world’s oil supply.
This positive vibe has been building for some time. As of market close last Friday, the S&P 500 index had gained 4.3% over the past month and 8.17% over the past three months, reflecting growing relief among investors as tensions linked to the conflict that began in early 2026 gradually eased.
7 S&P 500 stocks that missed the rally could see explosive catch-up gains
However, the rise in the S&P 500 does not reflect the same strength for all stocks. Much of the recent gains have been driven by large technology companies, many of which now trade at very high valuations.
The “Magnificent Seven” group is currently valued at about 29 times expected earnings for the next 12 months, compared to about 22 times for the entire S&P 500. Some analysts also point out that with the exception of Nvidia, big tech companies are expected to report slower earnings growth in 2026 than the rest of the index. This would be the first time this has happened since the AI-driven rally began.
In this environment, several S&P 500 companies that are lagging the broader market due to industry-specific challenges or weaknesses…
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