10 Stocks with 50% Upside Potential According to Analysts

Ruchi Gupta
7 min read

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In this article, we will take a look at 10 stocks with 50% upside potential according to analysts. To skip our analysis of the recent market activity, you can go directly to see the 5 Stocks with 50% Upside Potential According to Analysts.

This year turned out to be one of the strongest rallies in the US equity market, with technology, communication services, and consumer discretionary stocks notching significant gains in 2023. As of the end of November, the S&P 500 was already up by about 21%, outperforming its average annual return of about 10%.

The tech-heavy Nasdaq index is already up by more than 35% for the year, supported by the artificial intelligence frenzy that has seen most tech stocks rally by double-digit percentage points. It is a sharp contrast from the bear run in 2022 that saw the S&P 500 drop by 19% as the NASDAQ came under pressure and plunged 33%.  

The US stock market recorded its best month of the year in November, breaking a three-month streak of decline in the third quarter. The S&P 500 fell 3.7%, and the NASDAQ dropped 3% as concerns that the Federal Reserve will continue to raise interest rates blighted the markets. Analysts were also wary that rising interest rates would trigger a recession and crater the stock market.

As the fears subsided, the NASDAQ rallied 10% in November and the S&P 500 by 9%, recording the best monthly gains since October 2022. One key factor that has helped support the impressive run in the market is a shift of focus from rising interest rates.

High-growth cyclical technology telecom and consumer discretionary have been the top-performing stocks on inflationary pressure subsiding significantly. In addition, the stocks have seen their sentiment and fortunes improve amid the rate cut talk. On the other hand, defensive sectors like utilities, healthcare, and consumer staples have lagged, given the high demand for risk in the market.

Similarly, the overall stock market rally has been buoyed by large-cap stocks led by NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA).

Many analysts are expecting another annual gain heading into 2024. Analysts at Bank of America, BMO Capital, and Deutsche Bank have been the most vocal, reiterating that the S&P 500 will advance again in 2024.

Even as strategists at Goldman Sachs and Societe Generale remain conservative, they believe the overall market will edge higher in 2024, even if it remains shy of its previous peak. Expectations are high that the S&P 500 will power through the 5,000 level, especially on the Fed cutting interest rates and the economy avoiding recession.

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