Opportunity in the Sell-Off: 10 S&P 500 Stocks Down 20% That Analysts Are Bullish On

The U.S. stock market has kicked off 2026 on shaky ground. Following Monday’s 822-point plunge on the Dow, the S&P 500 is now down 1% for the year through the Feb. 23 close. While the broad index has shown resilience, beneath the surface, a significant number of stocks have been hit hard. Currently, 54 components of the S&P 500 are sporting year-to-date declines of at least 20%.

However, for contrarian investors, deep declines can sometimes signal deep value. A screen of these beaten-down names, using data from LSEG, reveals a cluster of stocks that combine attractive valuations with above-average growth forecasts and strong support from Wall Street analysts.

The Screening Criteria

To identify potential opportunities hiding in the downturn, we applied three strict filters to the 54 S&P 500 stocks down at least 20% year-to-date:

1. Valuation Advantage: The stock’s forward price-to-earnings (P/E) ratio—based on consensus earnings estimates for the next 12 months—is below the average for its specific sector.
2. Superior Growth: The company’s projected two-year revenue compound annual growth rate (CAGR) through 2027 is higher than its sector’s average.
3. Analyst Consensus: More than 50% of analysts covering the stock rate it a “buy” or the equivalent.

The screen yielded 10 diverse companies, spanning financials, technology, and healthcare. Here are the results, sorted by forward P/E.

The 10 Stocks Passing the Screen

Company	Sector	Forward P/E	2-Yr Est. Revenue CAGR (Through 2027)	% ‘Buy’ Ratings	Feb. 23 Price	Cons. Price Target	Implied Upside
Capital One Financial Corp.	Financials	9.1	11.8%	79%	$190.00	$276.91	46%
Trade Desk Inc. Class A	Comm. Services	11.0	15.7%	51%	$24.17	$54.56	126%
IQVIA Holdings Inc.	Healthcare	12.6	5.8%	81%	$162.31	$239.88	48%
KKR & Co Inc.	Financials	13.7	29.4%	91%	$92.19	$140.90	53%
Booking Holdings Inc.	Cons. Discretionary	14.0	9.6%	82%	$3,870.83	$5,844.35	51%
Block Inc.	Financials	14.9	10.7%	73%	$50.75	$82.54	63%
Oracle Corp.	Info. Technology	18.3	33.4%	73%	$141.31	$280.40	98%
AppLovin Corp.	Info. Technology	22.7	33.5%	87%	$380.62	$670.26	76%
ServiceNow Inc.	Info. Technology	23.1	19.4%	92%	$100.80	$190.85	89%
CoStar Group Inc.	Real Estate	34.1	15.1%	71%	$47.87	$77.14	61%
Source: LSEG

Key Takeaways from the List

• The Top Upside Play: Trade Desk (TTD) stands out with a consensus price target implying a staggering 126% upside over the next 12 months. While only 51% of analysts have a “buy” rating on the ad-tech firm, those who do see a dramatic recovery. Its forward P/E of 11.0 is a steep discount to the Communication Services sector’s 20.9, and its projected revenue growth outpaces its sector’s forecast.
• The Analyst Favorite: ServiceNow (NOW) is the most beloved stock on the list, with 92% of analysts rating it a “buy.” The cloud software company’s forward P/E of 23.1 is in line with the Information Technology sector’s 23.9, and its projected growth nearly matches the sector’s robust 19% forecast. Analysts see 89% upside from current levels.
• The Value-Growth Combo: Oracle (ORCL) presents a compelling mix. Its forward P/E of 18.3 is roughly 23% below its sector average, yet its projected two-year revenue CAGR of 33.4% is the second-highest on the entire list. This suggests the market may be undervaluing its cloud business transformation.
• The Cheapest of the Bunch: Capital One (COF) trades at a forward P/E of just 9.1, a significant discount to the Financials sector’s 15.3. While the company navigates the costly integration of its Discover Financial acquisition, its projected revenue growth of 11.8% outpaces the sector’s 6.4% forecast, pointing to potential earnings power once the deal is fully absorbed.

Sector Context

To provide a benchmark, here are the forward P/E and revenue growth projections for the S&P 500 and its sectors. The opportunity in the screened stocks becomes clear when compared to these broader averages.

Sector	Forward P/E	Proj. 2-Yr Revenue CAGR (Through 2027)
Communication Services	20.9	11.5%
Consumer Discretionary	27.3	7.5%
Consumer Staples	23.3	4.1%
Energy	20.1	1.3%
Financials	15.3	6.4%
Healthcare	18.6	5.7%
Industrials	26.3	7.2%
Information Technology	23.9	19.0%
Materials	21.0	5.6%
Real Estate	37.4	7.4%
Utilities	18.7	6.2%
S&P 500	21.6	7.9%
Source: LSEG

The Bottom Line

Volatility often creates opportunity. While these 10 S&P 500 stocks have endured significant losses to start 2026, they now trade at valuations below their sector peers while offering superior growth prospects, according to analyst estimates. The strong “buy” ratings from Wall Street suggest that for investors with a higher risk tolerance, this cohort of beaten-down names might represent a potential entry point ahead of a rebound.

Data in this article is based on LSEG consensus estimates as of Monday’s close and is for informational purposes only. Price changes exclude dividends. Investors should conduct their own research before making investment decisions.

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