Wall Street thinks these comeback stocks can keep going as S&P 500 nears a new high

Despite the S&P 500's near full recovery to its all-time high, analysts are identifying specific S&P 500 stocks positioned for continued significant gains. These companies, including First Solar, Delta Air Lines, United Airlines, and MGM Resorts, meet criteria of strong recent performance (20%+ since April 8), high analyst conviction (60%+ buy ratings), and substantial implied upside (20%+). Catalysts range from domestic policy benefits and trade restrictions for First Solar to tariff relief and economic stability for airlines, indicating targeted opportunities within a broadly rallying market.

Analysis

Despite the S&P 500's recovery to near its all-time high after an April low, a quantitative screen reveals specific stocks with continued strong upside potential. This analysis identifies companies that have not only gained over 20% since April 8 but also maintain high analyst conviction (over 60% buy ratings) and project at least 20% further upside to consensus price targets. First Solar (FSLR), up 26%, stands out due to a distinct fundamental catalyst; its US-based manufacturing is uniquely positioned to benefit from strict Chinese import restrictions, which are expected to enhance its pricing power. This view is supported by a Jefferies upgrade and a 35% implied upside. Similarly, major airlines Delta (DAL) and United (UAL), up 38% and 41% respectively, are buoyed by a revised macroeconomic outlook. Tariff relief has shifted analyst expectations from a downturn to stability, increasing confidence in the resilience of high-margin international and premium revenue. The gaming sector also presents opportunity, with MGM Resorts (MGM) rallying 33% on the back of upgraded full-year guidance from its BetMGM joint venture, with analysts seeing another 35% potential gain.

Key Decisions for Investors

• Given the S&P 500 is trading near its peak, investors should consider prioritizing individual stock selection over broad market exposure, focusing on companies like those identified which possess both strong momentum and clear, forward-looking fundamental catalysts.
• First Solar (FSLR) warrants consideration as its US manufacturing base provides a durable competitive advantage against foreign rivals facing import restrictions, potentially leading to superior pricing and market share gains.
• The improved macroeconomic sentiment and easing trade tensions provide a specific tailwind for airline stocks like Delta (DAL) and United (UAL), whose outlook for high-value premium and international travel has strengthened considerably.
• For exposure to the gaming sector, monitor the performance and guidance from MGM's BetMGM joint venture, as it has been identified as a primary driver of the stock's recent outperformance and positive analyst sentiment.