S&P 500: These 12 Fast-Rising Stocks Are Just Getting Started, Analysts Say

Here’s a glimmer of hope for S&P 500 investors: Markets are actually up from the year’s low. And better yet, analysts think some of the stocks gaining most are just getting warmed up.

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A dozen S&P 500 stocks up strongly from the market’s low this year, including consumer discretionary firms Pool (POOL) and D.R. Horton (DHI) plus communications services Dish Network (DISH), are expected to jump 15% or more in the next 12 months, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.

All these stocks are up 10%, or more, from the S&P 500’s low this year. That’s roughly three times better than the S&P 500 in that time. And almost half of these stocks now have Composite Rankings of 80 or higher — showing their stock gains and profit growth outstrip more than 80% of all the stocks in the S&P 500.

Such bullishness is sorely lacking with investors following a rough early 2022. And that’s to be expected with the S&P 500 down nearly 8% this year.

“For the first time since April 2020, the American Association of Individual Investors (AAII) survey reported more bears than bulls in its weekly reading,” said Liz Young, SoFi’s head of investment strategy. “So far, no major signs of distress. But if market jitters bleed into consumer jitters, that creates a bigger problem.”

S&P 500 Hoping The Low Can Hold

Its been a rough 2022 for the S&P 500 so far. And investors are hoping we’ve seen the worst.

The S&P 500 notched its lowest close this year on Feb. 23 at 4225.50. At that point, the S&P 500 was down more than 11% putting it in its first correction since the Covid-bounce. Even so, the S&P 500 is still off 8.4% for the year.

That’s not the kind of market action investors are used to in recent years. Investors lost $4.3 trillion, or 8.5%, in just the past quarter, says Wilshire Associates. And they’re down even more, $4.8 trillion, from the market’s Nov. 8, 2021, all-time high.

But there are some increasingly good signs. The S&P 500 at least is up 3.3% from its low this year. And nearly three-quarters of S&P 500 stocks are up from that point. And analysts think some still have room to run.

Recent S&P 500 Winners Analysts Like Best

When it comes to S&P 500 winners analysts see lots of upside in, it’s hard to top Dish Network.

Shares of the communications company are already up more than 12% from the S&P 500’s low this year, to 30.99. That’s enough to leave the stock down 4.5% this year, a slight improvement over the S&P 500 itself. And yet, analysts still think this is a 52.12 a share stock in 12 months. If they’re right, that’s implied upside of more than 68%. But with a Composite Rating of just 33, Dish isn’t exactly a powerful leader.

A more compelling rallying S&P 500 stock is homebuilder D.R. Horton. The stock has rallied more than 10% from the S&P 500’s low, to 86.38. And with a Composite Rating of 82, this isn’t just a fluke as the company is outperforming all but 18% of the S&P 500. Shares may still be down nearly 20% this year. But analysts think it’s good for a 38% rise from current levels to their 12 month price target of 119.47.

And even stronger, still, is pool-supply company Pool. Shares are up more than 13% this year to 469.38. And its solid fundamentals award this IBD Long-Term Leader with a Composite Rating of 90. And yet, analysts still see upside in the next 12 months of 16.3%. Get this: The company is seen making $17.69 earnings per share in 2022, up more than 10% from 2021. That tops the 8.5% profit growth analysts expect from the S&P 500 this year, says FactSet.

It’s still early to call an end to S&P 500 investors’ pain in 2022. But it’s definitely improving quickly for some stocks — and analysts think it’s only the beginning.

Analysts Like These S&P 500 Stocks Up The Most From The Bottom

They’re up 10% or more from the Feb. 23, 2022 low and analysts see 15%+ upside in 12 months

Sources: IBD, S&P Global Market Intelligence