The market has shown signs of recovery after a significant sell-off in early August, with several stocks demonstrating strong resilience and potential for further growth. Despite the volatility, equities have managed to bounce back, with the S & P 500, Dow Jones Industrial Average, and Nasdaq Composite all recouping their losses. This turnaround has prompted investors to consider the future direction of these stocks and where they might be headed next.
Identifying Potential Winners
According to CNBC Pro’s analysis of FactSet data, certain stocks have stood out during the market’s rebound and are seen as having more room to run. To identify these potential winners, several criteria were considered. These included stocks that hit a fresh 52-week high since the sell-off on Aug. 5, received buy ratings from at least 55% of analysts, and posted a 10% rise or more during the same period.
Stocks with Promising Performances
One such company that made the list is pharmaceutical firm Eli Lilly, which has seen impressive gains in both 2024 and August alone. With shares up nearly 64% for the year and 19% for the month, analysts remain bullish on the stock’s future prospects. Similarly, Walmart has also garnered attention for its strong performance, with shares climbing over 45% year-to-date and reaching a record high in August. The company’s robust second-quarter results and optimistic sales growth forecast have further fueled investor confidence.
Analysts surveyed by FactSet have expressed positive sentiments towards these stocks, maintaining buy ratings and forecasting upside potential. For example, more than 67% of analysts covering Eli Lilly anticipate further gains, with an average price target suggesting over 6% upside ahead. Likewise, over 69% of analysts covering Walmart have a buy rating on the stock, with an average price target indicating a potential increase of 6%.
In addition to Eli Lilly and Walmart, other companies that have demonstrated strong rebounds include insurance firm Progressive and retailer Ross Stores. These stocks have shown resilience in the face of market volatility and are poised for continued growth based on their recent performances.
While the market’s recovery remains uncertain, certain stocks have shown resilience and potential for further upside. By identifying companies with strong fundamentals, positive analyst sentiment, and robust performances, investors can position themselves for potential growth opportunities in the coming months.