Despite an overall bullish 2024, several S&P 500 stocks saw sharp declines in 2024. Are any of these laggards good investments for 2025? In this article, we will analyze the potential for stocks to rally in the new year. Start the New Year with a Portfolio Built for Volatility and Undervalued Gems – subscribe now during our New Year Sale and get up to 50% off at InvestingPro!
2024 ended with strong gains for the, which grew 23.3%, despite a tough end to the year. But this growth has not been distributed evenly across all areas.
While Communication Services (NYSE:) jumped more than 40%, making it the standout sector, Materials (NYSE:) lagged, posting a decline of almost 2%.
In terms of individual stocks, Palantir Technologies (NASDAQ:), Vistra Energy Corp (NYSE:) and Nvidia (NASDAQ:) gained the most last year, jumping 340.5%, 257.9% and 171%, respectively. .2%.
Conversely, Walgreens Boots Alliance (NASDAQ:), Intel (NASDAQ:) and Moderna (BMV:) (NASDAQ:) show the largest declines: -64.5%, -60.6% and -60.4 %.
As 2025 approaches, many investors are wondering if last year’s best-performing stocks still have room to run. Analysts are increasingly concerned about the inflated valuations of major technology stocks, with some even predicting a correction in the near future.
This could allow stocks that underperformed last year to find themselves in the spotlight. Could these beaten-down names be the next big opportunity?
To find out, we looked for S&P 500 stocks with a specific set of characteristics:
A price drop of more than 25% over the last 12 months A potential increase of more than 25% according to InvestingPro’s Fair Value A similar increase of more than 25% according to the average analyst target A superior financial health score 2.5/5 from InvestingPro
Fair value is an intelligent valuation model that helps us assess whether a stock is overvalued or undervalued. At the same time, the Health Score takes into account key financial indicators to assess the overall financial strength of a company.
Our research revealed five stocks that meet these criteria:
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