Which offers the best chance?

Of the 500 companies that make up the S&P 500 index, 480 companies, or 96%, are trading at lower market values ​​than Wall Street analysts' price targets, indicating a wealth of potential profit opportunities for investors. ing.

So far, April has been the darkest month for the U.S. stock market since September 2023, with the S&P 500 index SPDR S&P 500 ETF Trust (NYSE:SPY), down 3.7%.

Across all 11 sectors that make up the index, Energy Select Sector SPDR Fund (NYSE:XLE) managed to avoid losses.of Real Estate Select Sector SPDR Fund (NYSE:XLRE) experienced a 10% decline and emerged as the worst performing stock this month.

Higher-than-expected inflation data put downward pressure on stock prices and led to lower expectations for the US Federal Reserve to cut interest rates. As of April 18, investors expected fewer than two rate cuts, down from more than three expected at the beginning of the month.

At the same time, heightened geopolitical risks stemming from the ongoing Middle East crisis are increasing market uncertainty.

However, this period of heightened volatility has subsided the once-pervasive bullish momentum that lasted until the end of March, revealing attractive opportunities for investors who like to buy on the spur of the moment in undervalued stocks.

Here are the top five contrarian stocks within the S&P 500 index with the most significant relative gap between current market price and median price target.

Five. carnival corporationspeech

Carnival Co., Ltd. (NYSE:CCL) has experienced a notable decline, being down 11.54% this month and down 22.03% since the beginning of the year.

However, analysts remain consistent in their price predictions. The median target price at the beginning of the year was $20.78 and has since stabilized at $22.

This suggests a significant upside potential of 52.20% from the current trading price of $14.46 per share.

4. Bio-Rad Laboratories, Inc.

Bio-Rad Laboratories, Inc. (NYSE:BIO) price has fallen 18.81% this month and -13.03% since the beginning of the year.

Despite market fluctuations, the median price target remains unchanged at $436.70 since early 2024.

The stock is currently trading at $280.81 per share, which means that analysts see an upside potential of 55.51% if the stock price converges to their target price.

3. Warner Bros. Discovery, Inc.

Warner Bros. Discovery Co., Ltd. (NASDAQ:WBD) is down 5.27% this month, and is down a hefty 27.33% year-to-date.

Analysts have lowered their price targets for WBD stock, lowering the median price from $16.64 at the beginning of the year to $13 now.

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Despite these downward revisions, the current stock price of $8.27 still provides investors with some margin of safety, with a potential upside of 57.19% if it converges with analyst targets. is showing.

2. Caesars Entertainment Co., Ltd.

Caesars Entertainment Co., Ltd. (NYSE:CZR) is down 11.25% since the beginning of the month and an even more significant 17.19% since the beginning of the year.

However, despite these negative trends, analysts made minimal adjustments to the casino companies' price targets.

With the current trading price of $38.32, the median price target of $62.50 suggests a significant 61% return potential if the current price matches analyst expectations.

1. Globe Life Co., Ltd.

Globe Life Co., Ltd. (NYSE:GL) faced a tumultuous April, plummeting an astounding 50% due to a critical report by short seller Fuzzy Panda Research.

Nevertheless, the stock has rebounded 66% since its low on April 11, but remains well below pre-report levels.

Even though Wall Street analysts' price target was slightly lowered from $136 to $130 last month, the current stock price of $64.98 provides an attractive short squeeze opportunity, and investors are looking to counter. This suggests that if we can push back, we can expect a 100% profit. Counter Fuzzy Panda's bearish pressure.

Chart: Can Globelife cap short sellers?

Read now: Most S&P 500 stocks are no longer trading above their 50-day average: Is it a healthy rebound or is the bull market over?

Image generated using artificial intelligence via Midjourney.

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The article Street Estimates Say 96% of S&P 500 Stocks Point to Upward Potential: Which Offers the Best Opportunity? originally appeared on Benzinga.com

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