Despite a generally bullish 2024, several S&P 500 stocks posted sharp declines in 2024. In this piece, we will analyze the stocks' turnaround potential in the new year. The S&P 500 rose 23.3%, despite a rough finish to the year. But that growth wasn’t spread evenly across the board. As we move into 2025, many investors are wondering if the top-performing stocks from last year still have room to run.
Analysts are increasingly concerned about the inflated valuations of major tech stocks, with some even predicting a correction in the near future. This might open the door for stocks that underperformed last year to step into the spotlight. Could these beaten-down names be the next big opportunity? We will consider stocks with a price decline of more than 25% over the past 12 months and a similar upside of more than 25% according to analysts’ average target. Fair Value is an intelligent valuation model that helps us assess whether a stock is over- or undervalued. Meanwhile, the Health Score takes key financial metrics into account to gauge a company’s overall financial strength. Note that the stock with the greatest upside potential according to Fair Value AND analysts' objectives is biotech Biogen (NASDAQ: What's more, Biogen is also the stock on the list with the highest financial health score (2.94/5). However, the other stocks on this list also merit the interest of investors looking for shares ripe for a rebound after a difficult period. Even so, betting on stocks that are currently on a downward trend remains a risky strategy that is not suitable for all investor profiles. If you're looking for the best S&P 500 stocks to buy for 2025, there are probably other complementary approaches worth considering. On the other hand, it's risky to try and predict stock market trends over too long a timescale, given the unpredictability of modern markets and the diversity of their influence