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/

Landsberg Bennett is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC (member FINRA and SIPC). Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.

This is not an offer to buy or sell securities, nor should anything contained herein be construed as a recommendation or advice of any kind. Consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. No investment process is free of risk, and there is no guarantee that any investment process or investment opportunities will be profitable or suitable for all investors. Past performance is neither indicative nor a guarantee of future results. You cannot invest directly in an index.

These materials were created for informational purposes only; the opinions and positions stated are those of the author(s) and are not necessarily the official opinion or position of Hightower Advisors, LLC or its affiliates (“Hightower”). Any examples used are for illustrative purposes only and based on generic assumptions. All data or other information referenced is from sources believed to be reliable but not independently verified. Information provided is as of the date referenced and is subject to change without notice. Hightower assumes no liability for any action made or taken in reliance on or relating in any way to this information. Hightower makes no representations or warranties, express or implied, as to the accuracy or completeness of the information, for statements or errors or omissions, or results obtained from the use of this information. References to any person, organization, or the inclusion of external hyperlinks does not constitute endorsement (or guarantee of accuracy or safety) by Hightower of any such person, organization or linked website or the information, products or services contained therein.

Click here for definitions of and disclosures specific to commonly used terms.