These stocks are down at least 20% from 2021 highs, but Wall Street sees them gaining as much as 87% in 2022

These stocks are down at least 20% from 2021 highs, but Wall Street sees them gaining as much as 87% in 2022

This has been a remarkable year for stocks, but it may surprise you how many are in bear-market territory, usually defined as a decline of at least 20%.

Among a large group of beaten-down stocks, analysts working for brokerage firms expect dozens to soar in 2022. See them below.

A solid 2021, but look at the cap-weighting

The benchmark S&P 500 index SPX has risen 27.4% during 2021, following a 16.3% in 2020 — two years of pandemic and two years of double-digit gains. (All price changed in this article exclude dividends.)

You probably know the S&P 500 is weighted by market capitalization, but you might not be aware of how extreme the weighting can be. Take a look at the weighting and performance of the top five companies held by the SPDR S&P 500 ETF Trust SPY, which tracks the S&P 500. Together, they make up 23% of the fund’s portfolio and the index:

SPY and the S&P 500 include two common-share classes for Alphabet Inc. GOOGL GOOG and two apiece for four other companies, for a total of 505 stocks.

Stocks in bear markets that analysts love

For a broader list of large-cap stocks listed in the U.S., including those of some of China’s biggest internet players, we added the components of the Nasdaq-100 Index NDX, comprised of the 100 largest Nasdaq-listed companies by market capitalization and tracked by the Invesco QQQ Trust QQQ.

After removing duplicates, this left a list of 529 stocks.

Within in the group, 94 are in a bear market — that is, they were down at least 20% from their 2021 intraday highs through Dec. 28, according to data provided by FactSet.

Among the 94, there are 30 with “buy” or equivalent ratings from at least two-thirds of analysts polled by FactSet. Here they are, sorted by the 12-month upside potential implied by the consensus price targets:

CompanyTickerDecline from 2021 highClosing price – Dec. 282021 highDate of 2021 highShare “buy” ratingsConsensus price targetImplied 12-month upside potential
Pinduoduo Inc. ADR Class APDD-73.6%$56.04$212.6002/16/202176%$104.5487%
Baidu Inc. ADR Class ABIDU-60.3%$140.88$354.8202/22/202183%$232.3265%
JD.com Inc. ADR Class AJD-39.2%$65.87$108.2902/17/202194%$106.3061%
MercadoLibre Inc.MELI-34.8%$1,316.28$2,020.0001/21/202187%$2,011.0053%
Caesars Entertainment Inc.CZR-22.6%$92.78$119.8110/01/202194%$137.3648%
Generac Holdings Inc.GNRC-33.6%$348.18$524.3111/02/202177%$514.1148%
Alaska Air Group Inc.ALK-28.8%$52.90$74.2504/07/202193%$77.7147%
PayPal Holdings Inc.PYPL-38.7%$190.10$310.1607/26/202184%$273.6544%
CrowdStrike Holdings Inc. Class ACRWD-30.6%$207.23$298.4811/10/202186%$291.8841%
Trip.com Group Ltd. ADRTCOM-48.5%$23.29$45.1903/17/202179%$32.7841%
T-Mobile US Inc.TMUS-21.3%$118.16$150.2007/16/202181%$165.5140%
Enphase Energy Inc.ENPH-33.9%$186.79$282.4611/22/202167%$260.9240%
Global Payments Inc.GPN-38.8%$135.15$220.8104/26/202185%$188.4139%
NetEase Inc. ADRNTES-27.7%$97.15$134.3302/11/202197%$134.5338%
Activision Blizzard Inc.ATVI-36.2%$66.67$104.5302/16/202171%$90.8636%
Southwest Airlines Co.LUV-34.7%$42.29$64.7504/14/202178%$57.3236%
Fidelity National Information Services Inc.FIS-29.9%$109.29$155.9604/29/202174%$146.8634%
Match Group Inc.MTCH-27.0%$132.94$182.0010/21/202168%$175.1132%
Leidos Holdings Inc.LDOS-22.4%$88.26$113.7501/25/202171%$115.0030%
WestRock Co.WRK-28.8%$44.19$62.0305/17/202167%$56.9229%
Medtronic PLCMDT-23.1%$104.53$135.8909/09/202185%$134.5229%
Teleflex Inc.TFX-26.6%$330.03$449.3804/28/202175%$424.1129%
Zimmer Biomet Holdings Inc.ZBH-28.9%$128.21$180.3604/29/202168%$163.7128%
PTC Inc.PTC-20.4%$122.34$153.7307/23/202171%$156.1528%
Phillips 66PSX-21.6%$73.93$94.3406/10/202179%$93.5026%
Boeing Co.BA-26.0%$206.13$278.5703/15/202173%$259.6126%
Okta Inc. Class AOKTA-23.6%$224.47$294.0002/12/202182%$279.8825%
Walt Disney Co.DIS-23.6%$155.20$203.0203/08/202170%$193.2925%
Corning Inc.GLW-20.2%$37.35$46.8204/26/202169%$44.3819%
Lamb Weston Holdings Inc.LW-28.0%$62.22$86.4103/08/202178%$73.2918%
Source: FactSet
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