To The Moon

The US stock market has been trapped in a weak and volatile trend since 2026, with the S&P 500 Index posting a cumulative decline of 1% year to date as of Monday’s close. Beneath the surface of the overall market slump, however, a batch of deeply corrected stocks has quietly entered analysts’ buy radars. After a three-tier screening of 54 S&P 500 components that have fallen more than 20% this year, analysts identified 10 potential targets that combine valuation advantages, growth prospects and institutional consensus.

Three hard screening criteria were set for this selection:

Relative valuation advantage: Forward price-to-earnings (P/E) ratio, based on earnings estimates for the next 12 months, below the industry average;

Superior growth potential: Expected 2-year compound annual growth rate (CAGR) of revenue above the overall industry level;

Institutional consensus: Over 50% of analyst ratings being "Buy".

The 10 qualifying stocks include both traditional financial giants and tech upstarts, with their sectors concentrated in finance, information technology, healthcare and other fields. Below are the core data and analyst opinions on these companies:

In-depth Analysis of Highlight Stocks

$Trade Desk Inc.(TTD)$ leads the list with an expected price surge of 126%. While only 51% of analysts rate the stock a "Buy", the consensus target price is more than double the current share price, reflecting some institutions’ firm optimism about the company’s position in the ad tech sector. Its forward P/E ratio of 11x is far below the communication services industry average of 20.9x, and its 15.7% revenue growth rate also outpaces the industry’s 11.5% forecast.

$ServiceNow(NOW)$ is the most widely recognized target among institutions, with 92% of analysts giving it a "Buy" rating and the target price implying an 89% upside. As a cloud computing service provider, its forward P/E ratio of 23.1x is close to the information technology industry average of 23.9x, and its expected 19.4% 2-year revenue CAGR is roughly in line with the industry’s 19% level. The company’s solid fundamentals are the main reason for its popularity.

$Oracle(ORCL)$ demonstrates a notable valuation edge. Its forward P/E ratio of 18.3x represents a discount of about 23% to the information technology industry, while its expected revenue growth rate of 33.4% ranks second on the list, only behind AppLovin. Market optimism about the company’s cloud business transformation may act as a catalyst for its share price recovery.

$Capital One(COF)$ boasts the lowest forward P/E ratio on the list at 9.1x, significantly below the financial industry’s 15.3x level. Although the integration costs from its acquisition of Discover Financial have weighed on its share price in the short term, its expected 11.8% revenue growth rate outperforms the industry’s average of 6.4%. Once the integration effects materialize, the room for valuation recovery is substantial.

From an industry perspective, the current overall forward P/E ratio of the S&P 500 stands at 21.6x, with an expected 2-year revenue growth rate of 7.9%. Among the aforementioned 10 stocks, all except CoStar Group have forward valuations below their respective industry midpoints, while their expected revenue growth rates are generally higher than the industry levels. This combination of low valuation and high growth is exactly the "golden pit" that value investors seek in a sharp market decline.

Conclusion

Market panics are often times when high-quality assets are sold at a discount. Though these 10 S&P 500 components have dropped more than 20% year to date, analysts have cast a clear bullish vote with their ratings. Of course, investment decisions still need to be aligned with one’s own risk appetite. The above data is only an objective presentation based on LSEG consensus estimates and does not constitute investment advice. Staying rational amid volatility may be the key to seizing the main theme of the next market rally.

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