These stocks got hit hard in March. Analysts see them rebounding
After getting hammered last month, analysts believe it’s only up from here for a cohort of stocks including Carnival and Micron Technology . March was characterized by a sharp uptick in volatility, as tensions between the United States and Iran ramped up. The Cboe Volatility Index , Wall Street’s fear gauge, spiked above 30. Of the 11 S & P 500 sectors, only energy is pacing to finish the month higher, propelled by surging oil prices due to the Middle East conflict. Some stocks have been harder hit by the sell-off. CNBC scoured the market to identify ones that Wall Street believes have the highest chance of making a comeback. To be included in the table below, stocks had to meet the following criteria: Be a member of the S & P 500 . Pulled back at least 20% in March. Assigned a buy rating by at least 51% of analysts covering the name. Have an average price target offering upside of at least 35%. One name on the list was cruise line operator Carnival, down 24% this month. In the face of higher oil prices, the broader cruise industry has been hit especially hard since the Iran conflict began. But Carnival’s average price target implies that shares could rise 45% from here, and 74% of analysts covering the name have adopted a bullish outlook. On Friday, HSBC upgraded the stock to a buy rating from hold, saying that Carnival’s risk-reward now skews to the upside. “We acknowledge greater near-term earnings uncertainty versus peers, like RCL, which benefit from derivative protection; however, aligning our new estimates with the HSBC House view which suggests a meaningful near-term, albeit transitory impact to oil prices, CCL shares are trading at a notable discount to historical multiples,” wrote analyst Meredith Prichard Jensen. Jensen’s updated share price of $30.10, trimmed from $33.60, implies that Carnival stock could rise 26% from here. Semiconductor manufacturer Micron also made the list, with a 22% month-to-date slide. The average price target implies an upside of 70% from here, while 73% of analysts covering the name view it as a buy. On Tuesday, Citi reiterated its bullish rating on the name, although the bank lowered its target price to $425 from $510. “We lower our Micron target price to reflect the recent pullback in DRAM spot prices. Mainstream DDR5 16GB DRAM product prices are down ~6% since Micron reported,” analyst Atif Malik wrote. “That said, Micron and its memory peers have begun negotiations with the hyperscalers on 3-5 year strategic or long-term agreements to lock in base volumes, pre-payments, and adjustments to quarterly pricing based on market conditions, which should provide support to contract prices, in our view.” Malik’s updated price forecast still offers upside of 32% from here. Other stocks that made the list include Fair Isaac and Axon Enterprise .