In this article, we will look at the 10 Stocks Expected to Bounce Back According to Analysts.
On June 22, Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, appeared on a CNBC Television interview to discuss the latest market trends and his S&P 500 base and bullish case targets. Parker believes that the market gains and the bullish run are likely to continue. His base case for the S&P 500 is 7,800, while the bullish case suggests the index can reach 8,900 by the end of the year. Parker elaborated that most of the market runs we have seen until now have been driven by earnings, as even the most bullish earnings expectations have been consistently surpassed.
Parker believes that the earnings momentum is likely to continue throughout the year. He elaborated that his base case assumes lower multiples, and even if the multiples continue to stay where they are, the index can easily surpass 8,900 by the end of 2026. Parker noted that most of the growth has been driven by the technology sector and particularly the capital expenditure story. He highlighted that the market is expected to broaden out as 8 out of the 11 sectors of the S&P index are expected to deliver double-digit growth.
With that, let’s take a look at some of the Stocks Expected to Bounce Back According to Analysts.
Our Methodology
To curate the list of 10 Stocks Expected to Bounce Back According to Analysts, we used the Finviz stock screener, CNN, and Insider Monkey’s database as our sources. Using the screener, we aggregated a list of stocks that have declined more than 20% on a year-to-date basis, but Wall Street sees more than 30% upside. Next, we checked the stock performance and upside from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s hedge fund database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Stocks Expected to Bounce Back According to Analysts
10. SAP SE (NYSE:SAP)
Year-to-Date Decline: 34.48%
Upside Potential: 61.06%
Number of Hedge Fund Holders: 33
SAP SE (NYSE:SAP) has fallen more than 34% year-to-date, but the street expects more than 61% upside from the current level. Moreover, 82% of the 17 analysts covering the stock maintain a Buy rating on the shares. SAP SE (NYSE:SAP) ranks among our list of Stocks Expected to Bounce Back According to Analysts.
The share price fell on June 10, after Goldman Sachs trimmed its margin forecasts for SAP ahead of its Q2 results. The stock has fallen more than 8.85% since Goldman lowered margin forecasts. The bank cited higher hardware costs in the second half of 2026 as the main pressure point. Goldman lowered second-half 2026 gross margin estimates from 73.3% to 72.8% and also adjusted the full-year EBIT growth forecast to around 15%.
In addition, the firm also believes that the company’s two pending acquisitions, Dremio and Prior Labs, are expected to be mildly margin dilutive; however, the company believes that this will be offset by cost efficiencies in other businesses. Goldman left its cloud backlog growth assumptions largely unchanged, though it slightly raised its FY26 forecast after factoring in the recently closed Reltio acquisition. Analysts also flagged that a Middle Eastern customer is expected to scale back, adding some near-term pressure on cloud revenue.
Despite the caution, the firm has a Buy rating on the stock with a price target of $311.
SAP SE (NYSE:SAP) is a technology company that was founded in 1972 and is headquartered in Germany. The company primarily offers enterprise applications and business solutions.
9. Accenture plc (NYSE:ACN)
Year-to-Date Decline: 50.77%
Upside Potential: 45.34%
Number of Hedge Fund Holders: 64
Accenture plc (NYSE:ACN) has declined more than 50% year-to-date and around 34% since the start of June. While the share price has been hit due to sector-wide margin concerns, the stock plummeted further after management narrowed its full-year local-currency revenue growth forecast from a range of 3% – 5% to 3% – 4%.
Wall Street still expects the stock to rebound as the 12-month average analyst price target reflects more than 45% upside from the current level. As a result, Accenture plc (NYSE:ACN) ranks as one of the Stocks Expected to Bounce Back According to Analysts.
Recently, on June 15, Morgan Stanley downgraded the stock from Overweight to Equal Weight, cutting its price target sharply to $177 from $240. The analyst cited three key concerns. Firstly, the expected rationalization of AI spending hasn’t materialized in a way that benefits Accenture. Second, the interest rate environment is less supportive for client budget growth, making it harder for the company to expand its business. Lastly, the analyst expects the company’s future acquisitions to be increasingly expensive, adding another layer of financial pressure.
Accenture (NYSE:ACN) is a global professional services company specializing in strategy, consulting, technology, and digital transformation. Headquartered in Dublin, Ireland, the company provides services in cloud computing, artificial intelligence, security, and operations, helping organizations modernize systems and drive innovation across industries.
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