Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 S&P 500 Stocks With The Most Upside

In this article, we will be taking a look at 10 S&P 500 stocks with the most upside. To skip our detailed analysis of these stocks and their projected growth, you can go directly to see the 5 S&P 500 Stock With The Most Upside.

Amid the bloodbath in the stock market in 2022, investors are flocking to stable stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson and Johnson (NYSE:JNJ). Compared to other indexes, the S&P 500 has been performing reasonably well. According to a JPMorgan Weekly Market Recap report for the week that ended on October 23, the S&P 500’s weekly return stood at 4.75%. In comparison, the Russell 2000 and Russell 1000 Value had weekly index returns of 3.57% and 3.93%, respectively. The S&P’s three-year cumulative index return stood at 31.1% as of October 24, while the Dow Jones 30, Russell 2000, and Russell 1000 Value, all lagged behind. The three-year cumulative returns for these indices were 23.38%, 16.66%, and 19.27%, respectively.

Our Methodology

We have selected S&P 500 stocks with significant upside potential, based on a comparison between their share prices as of October 24 and analyst price targets placed on the stocks. These companies are popular among hedge funds this year according to Insider Monkey’s second quarter hedge fund data when 895 funds were tracked. We have ranked these stocks based on the number of hedge funds holding stakes in them, from the lowest to the highest number.

S&P 500 Stocks With The Most Upside

10. BorgWarner Inc. (NYSE:BWA)

Number of Hedge Fund Holders: 31

Share Price as of October 24: $34.54

BorgWarner Inc. (NYSE:BWA) is an auto parts and equipment company providing solutions for combustion, hybrid, and electric vehicles across the globe. The company offers turbochargers, emissions systems, thermal systems, and gasoline ignition technology, among much more. It is based in Auburn Hills, Michigan.

John Murphy, an analyst at Bank of America, holds a $75 price target on shares of BorgWarner Inc. (NYSE:BWA) as of September 9. The analyst also reiterated a Buy rating on the stock.

This August, BorgWarner Inc. (NYSE:BWA) beat consensus estimates in its second-quarter earnings results with a 7% increase in organic sales during the quarter. The company’s guidance for the rest of the year remains strong despite inflation fears, as it expects full-year organic sales to rise by 11% to 14%, and its EPS to land between $4 to $4.4, versus the $4.02 consensus. In June, BofA analysts named BorgWarner Inc. (NYSE:BWA) as one of their top SMID-cap stocks for the second half of 2022. A SMID-cap stock is one of the smallest 2500 companies within the larger benchmark.

Bailard Inc was the largest stakeholder in BorgWarner Inc. (NYSE:BWA) in the second quarter, holding 123,486 shares worth $3.9 million. In total, 31 hedge funds were long the stock, with a total stake value of $182.5 million.

Oakmark Funds, an investment management firm, mentioned BorgWarner Inc. (NYSE:BWA) in its fourth-quarter 2021 investor letter. Here’s what the firm said:

“We had the opportunity to purchase BorgWarner for a high single-digit multiple of our estimate of normal earnings due to elevated cyclical concerns and uncertainty about the longer term impact of powertrain electrification on the business. Currently, the company’s earnings are depressed due to semiconductor supply constraints that are impacting the entire industry. We expect these constraints to prove transitory, and we’re confident that component shortages will be resolved in the coming years. Furthermore, we believe that OEMs are likely to rely heavily on third-party suppliers, like BorgWarner, to leverage R&D expenses to enhance innovation and speed-to-market in an electrified world. For decades, we’ve been impressed with how BorgWarner management has successfully acquired and scaled fuel efficiency technologies for internal combustion engines. We see strong parallels and underappreciated potential in the acquisitions the company has made over the past 5+ years in key electric vehicle technologies. We believe the company is well-positioned to manufacture and integrate new propulsion systems and components to meet customer demands.”

BorgWarner Inc. (NYSE:BWA), like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson and Johnson (NYSE:JNJ), is set to become one of the most profitable stocks in the S&P 500 according to analysts today.

9. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 41

Share Price as of October 24: $14.10

DISH Network Corporation (NASDAQ:DISH) is a communication services company providing pay-TV services in the US. The company operates through its Pay-TV and Wireless segments. It provides video services under its DISH TV brand, alongside programming packages including programming through national and local broadcast networks, and national and regional cable networks.

As of September 27, BofA analysts hold a Buy rating on DISH Network Corporation (NASDAQ:DISH) shares, alongside a $30 price target.

This September, DISH Network Corporation (NASDAQ:DISH) shares went up by 4% after Apple’s new iPhone unveiling event since the new iPhones all sported the company’s band 70 spectrum. Band 70 is an LTE operating frequency Band that carries mobile data for smartphone users.

DISH Network Corporation (NASDAQ:DISH) was found among the 13F holdings of 41 hedge funds in the second quarter. In comparison, 48 hedge funds were long the stock in the previous quarter. Their total stake values were $936.9 million and $1.8 billion, respectively.

8. Western Digital Corporation (NASDAQ:WDC)

Number of Hedge Fund Holders: 43

Share Price as of October 24: $34.86

Western Digital Corporation (NASDAQ:WDC) is an information technology company working to develop, manufacture, and sell data storage devices and solutions. The company operates in the US, China, Hong Kong, Europe, the Middle East, Africa, the rest of Asia, and internationally. It is based in San Jose, California.

Christian Schwab, an analyst at Craig-Hallum, placed a $50 price target on Western Digital Corporation (NASDAQ:WDC) shares on October 4. The analyst also reiterated a Buy rating on the stock.

In the fiscal fourth quarter of 2022, Western Digital Corporation (NASDAQ:WDC) had an EPS of $1.78, beating estimates by $0.06. The company’s revenue of $4.53 billion also beat the previous quarter’s revenue of $4.38 billion. Near the end of September, Western Digital Corporation (NASDAQ:WDC) shares rose by 25.% to $32.98 in premarket trading as well, outperforming key competitors such as Seagate Technology, which remained flat.

There were 43 funds long Western Digital Corporation (NASDAQ:WDC) in the second quarter, with a total stake value of $894.4 million. Of these funds, Lyrical Asset Management was the largest stakeholder in the company, holding 3.9 million shares worth $177.2 million.

7. Aptiv PLC (NYSE:APTV)

Number of Hedge Fund Holders: 43

Share Price as of October 24: $87.04

Aptiv PLC (NYSE:APTV) is another auto parts and equipment company on our list, working to design, manufacture, and sell vehicle components across the globe. The company offers electrical, electronic, and safety technology solutions in the automotive and commercial vehicle markets. It operates through its Signal and Power Solutions, and Advanced Safety and User Experience segments.

Berenberg’s Jared Maymon assumed coverage of Aptiv PLC (NYSE:APTV) shares on September 28 with a Buy rating. The analyst also placed a $130 price target on the stock.

This June, Goldman Sachs named Aptiv PLC (NYSE:APTV) as one of the companies it expects to perform well through the end of 2022, based on its solid free cash flow generation, good market share, and ability to benefit from the growth in the electric vehicles sector. Aptiv PLC (NYSE:APTV) also benefitted in April from an upgrade at Wells Fargo, which placed an Equal Weight rating on the stock after having it placed at Underweight for a while. Analyst Colin Lagan commented at the time that the company’s guidance of 8% to 10% growth over the market implied it was well-positioned to offset volume declines in a recession.

Our hedge fund data shows 43 funds long Aptiv PLC (NYSE:APTV) in the second quarter and 48 funds long the stock in the previous quarter. Their total stake values were $1.6 billion and $1.7 billion, respectively.

ClearBridge Investments, an investment management firm mentioned Aptiv PLC (NYSE:APTV) in its first-quarter 2022 investor letter. Here’s what the firm said:

“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”

6. Ford Motor Company (NYSE:F)

Number of Hedge Fund Holders: 46

Share Price as of October 24: $12.19

Ford Motor Company (NYSE:F) is an automobile manufacturer working to design and market a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. The company operates through its Automotive, Mobility, and Ford Credit segments. It is based in Dearborn, Michigan.

Bank of America analysts placed a Buy rating on Ford Motor Company (NYSE:F) shares on September 27, alongside a $28 price target.

This October, Ford Motor Company (NYSE:F) saw an increase in its vehicle sales in China during the third quarter, when it sold 133,000 vehicles, demonstrating a 12% rise quarter-over-quarter. The company’s SUV sales were up 3% year-over-year as well. In September, Ford Motor Company (NYSE:F) also so a stunning rise of 197.3% year-over-year in its electric vehicle sales, with retail sales jumping by 152.1% year-over-year.

In total, 46 funds were long Ford Motor Company (NYSE:F) in the second quarter. Their total stake value was $608.8 million. Citadel Investment Group was the largest stakeholder in the company, holding 29 million shares worth $323.2 million.

Leaven Partners, an investment management firm, mentioned Ford Motor Company (NYSE:F) in its third-quarter 2022 investor letter. Here’s what the firm said:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

Ford Motor Company (NYSE:F), like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson and Johnson (NYSE:JNJ), is among the few S&P 500 stocks elite hedge funds are still piling into today.

Click to continue reading and see the 5 S&P 500 Stocks With The Most Upside.

Suggest articles:

Disclosure: None. 10 S&P 500 Stocks With The Most Upside is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!