Stocks in these downbeat sectors are outperforming the market, and analysts love them
This year has been marked by big sell-offs in certain sectors, as economic uncertainty and rising interest rates have sparked sharp declines. However, there are still some stocks that are outperforming even as their peers sink, and Wall Street analysts think it’s not too late to jump into those names. The chart below, which uses data from FactSet as of Friday’s close, shows stocks in beaten-down areas of the market that have outperformed the S & P 500 this year. These names still have buy ratings from more than 50% of analysts. Source: FactSet The biggest outperformer on the list is T-Mobile , which has jumped more than 20% this year. T-Mobile does not have the same exposure to the cable television or entertainment markets that many of its telecom peers do, which may be helping it outperform. T-Mobile is also rolling out a 5G home internet product that could be a growth opportunity in an otherwise mature market. Additionally, Morgan Stanley analyst Simon Flannery said in a note to clients last week that T-Mobile’s board could approve a stock buyback program in the coming months. Tech stocks have been hit hard this year, but the screen shows that there have been a number of relative stalwarts. SolarEdge Technologies has enjoyed a boost from the clean energy spending initiatives under the Biden administration. The company is also trading 29% below its average analyst price target, according to FactSet. Video game company Electronic Arts has also managed to hold its ground in 2022. The stock has a buy rating from more than 60% of its analysts. After the company’s most recent earnings report earlier this month, Wedbush analyst Michael Pachter raised his price target and fiscal 2023 earnings estimates for EA, saying the company was “well-positioned to meet or exceed its FY:23 guidance.” Payments stocks are another bright spot on the list, as several high profile names have outperformed the financial sector this year. Visa , Mastercard and Global Payments are all well liked by analysts and have dropped less than 10% year to date, easily outperforming the S & P 500. — CNBC’s Michael Bloom contributed to this report.