Comeback candidates for 2024's second half include Starbucks and Nike — Here are the rest

Published Fri, Jun 21 20246:50 AM EDT

Some stocks have been noticeably absent from recent highs on Wall Street. The S & P 500 topped the 5,500 level for the first time on Thursday. The index ultimately closed lower, but it's touting a roughly 15% advance in 2024. The artificial intelligence boom has aided market strength, with de facto leader and AI bellwether Nvidia also reaching a record on Thursday before retreating. However, shares of heavyweight companies including Nike and Starbucks have not fared as well this year. The sneaker manufacturer has slipped about 12% in 2024, while Starbucks has pulled back more than 16%. Those moves could reverse course, however, according to consensus forecasts from analysts. CNBC Pro screened for S & P 500 laggards poised for a turnaround, abiding by the following criteria: Stocks are negative year-to-date Shares have turned higher over the past month Average analyst price targets imply upside greater than 10% Readers can add and customize this screen using the CNBC Pro Stock Screener tool here . Data in the table below is as of Tuesday. Starbucks The coffee chain posted sluggish fiscal second-quarter results in late April, noting a stark decline in same-store sales. Starbucks also cut its forward guidance, with executives noting that they expected a slew of soft data to continue to weigh on results moving forward. But the weakness in the coffee giant's stock could present investors with an attractive entry point as Wall Street seemingly resets its expectations, according to Goldman Sachs. The firm initiated coverage of Starbucks with a buy rating earlier in June. SBUX YTD mountain Starbucks stock. "We acknowledge the still-prevalent market skepticism as well as fundamental issues (throughput, engagement of younger customers, etc.) which need to be addressed; however, we believe the worst is behind and expect to see the second derivative start to improve from FY3Q24E," analyst Christine Cho wrote on June 13. Nike The sports apparel company has also been under pressure in 2024. Investors were disappointed back in March as Nike issued a tepid sales forecast and noted sales in China came in just below the Street's expectations. NKE YTD mountain Nike stock. Ahead of Nike's fiscal fourth-quarter results on June 27 , Morgan Stanley analyst Alex Straton reiterated an outperform rating on the apparel stock, bringing down the price target by $2 to $114. This implies about 19% upside from Thursday's close. "While the stock could prove range-bound until NKE's Fall Investor Day, we think the risk/ reward skews to the upside over the NTM [next 12 months]," Straton wrote in a Monday report. Caesars Entertainment Shares of casino and online gaming operator Caesars Entertainment have plunged more than 20% in 2024. Raymond James listed Caesars as top pick in a May note and initiated stock coverage with a buy rating. Analyst RJ Milligan noted that the company's "messy" first-quarter results were "one-time in nature" and said the firm expects "improving results through the rest of 2024." Indeed, the period's revenue and adjusted earnings before interest, taxes, depreciation and amortization fell short of analysts' expectations, per FactSet. CZR YTD mountain Caesars Entertainment stock. "There are two major investor hang-ups that have weighed on CZR's multiple: Digital profitability and higher leverage. We see a clear path to resolving both issues, with the digital business beginning to deliver positive EBITDA and a path for CZR to meaningfully de-lever using free cash flow," Milligan said. The analyst's $55 per share price target calls for nearly 42% upside. Other stocks on CNBC Pro's list include Insulet and Expedia .