Analysts think these stocks in underperforming sectors are due for a comeback

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Watch these Wall Street underperformers for a potential comeback in the second half of 2023.

Not every corner of Wall Street has benefited from a stronger-than-expected first half of 2023. Markets are showing signs of slowing down in recent days after a string of gains . Investors are seemingly turning their attention to comments from Federal Reserve Chair Jerome Powell last week, in which he indicated rates will have to go up further before the end of the year.

Pro used FactSet data to scan for stocks within these sectors that could potentially stage a comeback in the second half of the year and meet the following criteria: The stock is a member of the S & P 500 utilities, financials and energy sectors. 55% or more of analysts covering the stock maintain a buy rating. Average analyst forecast implies 25% or more upside. PayPal stock thrived during the Covid-19 pandemic due to consumers relying on the platform to shop online.

mountain PayPal stock has slipped more than 6% from January. In energy, Halliburton posted a stronger-than-expected quarterly earnings report in April , highlighted by a 33% year-over-year increase in revenue. However, the stock is still down nearly 20% in 2023. Analysts are big believers in Halliburton stock, however, with nearly 83% of those covering the company rating shares as a buy. The average analyst price target implies roughly 54% upside to the stock's current trading levels.

 

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