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Piper Sandler analysts named the stocks that had the biggest upside, measured in standard deviations, in their Portfolio Strategy report.
Overall, the S&P 500 (SP500) is now up 14.5% year-to-date. This outperformance during the first half of the year is one of the top three in the last 25 years, behind the first half of 2019, and the first half of 2023.
But despite the large-cap stocks’ strength, which undoubtedly moved the market up, most U.S. equities declined.
Although the S&P 500 (SP500) made new highs during the second quarter, and the Magnificent Seven stocks — aside from Tesla (TSLA) — made all-time highs, only 25% of the stocks made all-time highs.
“Narrow breadth has been a function of lingering macro risks (i.e. higher for longer rates) and a bifurcated earnings backdrop where only the mega caps are seeing significant earnings strength,” Analyst Michael Kantrowitz wrote.
Current market breadth is as low as it was during 2000, but there are some stocks seeing upside extremes in their relative performance.
These are S&P 1500 (NYSEARCA:SPTM) stocks whose relative performance year-over-year are at 2 standard deviations or more:
- QUALCOMM Inc. (QCOM)
- Micron Technology Inc. (MU)
- AT&T Inc. (T)
- Arista Network Inc. (ANET)
- Amphenol Corp. (APH)
- Fidelity National Information Services Inc. (FIS)
- Vistra Corp. (VST)
- Western Digital Corp. (WDC)
- GoDaddy Inc. Class A (GDDY)
- Domino’s Pizza Inc. (DPZ)
- NRG Energy Inc. (NRG)
- WestRock Co. (WRK)
- Gap Inc. (GPS)
- Sprouts Farmers Market Inc. (SFM)
- Jackson Financial Inc. Class A (JXN)
- ACI Worldwide Inc. (ACIW)
- Brinker International Inc. (EAT)
- StepStone Group Inc. Class A (STEP)
- Mercury General Corp. (MCY)
- Minerals Technologies Inc. (MTX)
- Telephone and Data Systems Inc. (TDS)
- Hawkis Inc. (HWKN)
- MillerKnoll Inc. (MLKN)
- National Healthcare Corp. (NHC)
- QuinStreet Inc. (QNST)
- Phibro Animal Health Corp. Class A (PAHC)