The S&P 500 is up over 13% this year and hit a new record of 6,753.72 points on Wednesday. But not every stock in the index has done well.
Some stocks have soared, while others have dropped a lot.
The five best-performing S&P 500 stocks this year have risen between 124% and 198%:
The five worst-performing S&P 500 stocks have dropped between 43% and 54% this year:
As the fourth quarter begins—the period usually strongest for stocks, leading up to the Christmas rally—some of the year’s worst-hit stocks could bounce back strongly. This is even more likely because the plans to keep supporting the markets with rate cuts. Last night’s FOMC suggested that two more cuts could come before the end of 2025.
In addition, the current government shutdown, which threatens the economy, is likely to end eventually, and its resolution could give the markets an unexpected boost.
Along with the usual seasonal boost, several factors unique to 2025 add reasons to be optimistic in the coming months.
Hunting for Top Buying Opportunities in the S&P 500
Using the Investing.com Screener, we identified S&P 500 stocks that struggled earlier this year but are now showing signs of recovery and appear highly undervalued based on various valuation models.
Here’s how Investing.com Screener was set up:
- YTD drop of more than 25%
- Positive change over one month
- Fair Value potential greater than +20%.
Reminders: InvestingPro Fair Value calculates an intelligent average of several recognized valuation models for each stock on the market. The Health Score, on the other hand, is based on several key financial metrics and peer comparisons to assess the strength of a company’s finances. If you are not an InvestingPro subscriber already, click here to subscribe now!
This search enabled us to identify 8 S&P 500 stocks:
WARNING: Although the Screener’s basic functions are available free of charge, in this search we used metrics reserved for InvestingPro subscribers, Pro+ plan. If you have a Pro+ subscription, click here to be directed to this search recorded directly on the Screener.
These stocks, which have fallen between -25.9% and gained up to 54.1% since the start of the year, have bounced back by 0.2% to 33.5% over the past month.
More importantly, their InvestingPro Fair Value potential, ranging from +21.6% to +61.9%, indicates these stocks remain well below their estimated fundamental value, putting them in a strong position to outperform in the coming weeks.
Conclusion
With Q4’s historically strong seasonality and the likelihood of additional Fed rate cuts, some S&P 500 stocks that have struggled this year could rebound sharply. The stocks highlighted in this article stand out as key opportunities to watch in the coming weeks.
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