Investor’s Business Daily: Analysts Predict 9 Beaten-Down Stocks Will Soar Big Time

August 8, 2024

Despite the recent market downturn, some analysts are optimistic about the recovery potential of certain sectors within the S&P 500 that have experienced significant declines since the July 16 high.

Specific companies have seen substantial drops but are predicted to rebound strongly, with expected gains of at least 33% over the next 12 months. This contrasts with the average S&P 500 performance, which is projected to rise only 16% after a recent 4.8% drop.

Michael Landsberg, CIO of Landsberg Bennett Private Wealth Management, advises investors to manage their risk by adjusting their portfolios, particularly if they are heavily weighted in tech stocks. He expects continued volatility in the market.

Key Takeaways:

  1. Recovery Potential for Declining Sectors: Some areas within the S&P 500 are expected to see significant gains of 33% or more over the next year despite recent declines.
  2. Analysts’ Optimism: Analysts predict strong rebounds within these sectors, driven by expected profits in 2024 and 2025.
  3. Tech and Health Care Focus: While certain sectors dominate the list of potential recovery leaders, others like health care also show promise with anticipated rallies despite potential profit declines in 2024.
  4. Risk Management Advice: Michael Landsberg highlights the importance of managing risk, particularly for investors with large positions in specific sectors. He notes, “Many investors are sitting on big gains, and these positions have likely become too large of a weighting in their portfolio, so it’s important for investors to right-size their risk, as we expect this volatility to continue for a bit longer.”
  5. Strategic Buying: Investors are encouraged to have a buy list ready but should be cautious and follow buy rules, especially when considering investments that have recently fallen.

Learn more here: https://www.investors.com/etfs-and-funds/sectors/sp500-analysts-predict-beaten-down-stocks-will-soar-big-time/

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