Benzinga - by Piero Cingari, Benzinga Staff Writer.
The S&P 500 index recently surged to new all-time highs, experiencing a remarkable gain of nearly 20% in the past three months. This surge can be attributed to the influence of artificial intelligence, optimistic expectations for a robust earnings season and the anticipation of interest rate cuts by the Federal Reserve in 2024.
Amidst this significant milestone, investors are left pondering whether there are still untapped opportunities within the index that tracks the performance of the largest 500 U.S. companies.
Traditional valuation metrics commonly used to determine whether a stock is over or undervalued include the price-to-earnings ratio (P/E) and the price-to-sales ratio (P/S).
Alternatively, another approach is to examine the upside potential as projected by Wall Street analysts for the upcoming year. This involves looking at the percentage gap between their one-year median price target and the current market prices.
Here are the S&P 500 stocks currently displaying the most significant upside potential, as their price targets significantly exceed their current market valuations.
Top 10 Stocks Positioned For 2024 Rally: What Wall Street Analysts See That Investors Might Not
Warner Bros. Discovery IncSecond in this ranking, there is First Solar Inc. (NASDAQ:FSLR), with a 47.7% year-ahead upside. Third is Marathon Oil Corp. (NYSE:MRO) with a 45% upside potential.
| Warner Bros. Discovery, Inc. | $25.68B | -7.47% | 51.95% |
| First Solar, Inc. (NASDAQ:FSLR) | $16.38B | -11.01% | 47.74% |
| Marathon Oil Corporation (NYSE:MRO) | $13.19B | -6.73% | 45.11% |
| United Airlines Holdings, Inc. (NASDAQ:UAL) | $13.35B | -1.37% | 43.75% |
| Bunge Global SA (NYSE:BG) | $13.14B | -10.41% | 43.73% |
| Albemarle Corporation (NYSE:ALB) | $14.47B | -14.67% | 41.94% |
| Newmont Corporation (NYSE:NEM) | $40.77B | -14.54% | 40.94% |
| Aptiv PLC (NYSE:APTV) | $23.32B | -8.13% | 39.51% |
| Bio-Rad Laboratories, Inc. (NYSE:BIO) | $9.22B | -2.30% | 39.48% |
| Halliburton Company (NYSE:HAL) | $31.93B | -1.33% | 37.37% |
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