2024’s ‘biggest losers’ that could see reversal in 2025

Roth MKM analysts created a list of 28 stocks that were the most beaten down in 2024, but that could be starting to force a bullish reversal pattern.

JC O’Hara, chief market technician at Roth MKM said that stocks that were the most down at the end of a year often receive seasonal inflows for value investing at the start of a new calendar cycle.

“It is true, stocks simply do not stop going down merely by turning the page on a calendar to a new month, but we found investment managers are more comfortable buying down-and-out given the longer runway a new year provides,” he said.

Analysts selected names by looking at stocks’ price action showing massive oversold levels and signs of significant downside cap. Then, they identified those that were approaching “a zone of sturdy support on which a base can be formed in 2025, supported by buying demand.”

O’Hara also said that although some of those names are “not quite there yet” and could need “a little more tactical patience,” the following are 2024 losers that could be 2025 leaders.

• Nike (NKE) – Down 29% year-to-date; Potential upside: 30% to $100
• Ulta (ULTA) – Down 14% year-to-date; Potential upside: 25% to $530
• Global Payments (GPN) – Down 13% year-to-date; Potential upside: 27% to $140
• Merck & Co. (MRK) – Down 9% year-to-date; Potential upside: 32% to $130
• Zimmer Biomet Holding (ZBH) – Down 13% year-to-date; Potential upside: 23% to $130.
• The Boeing Co. (BA) – Down 31% year-to-date; Potential upside: 22% to $218
• ANSYS Inc. (ANSS) – Down 7% year-to-date; Potential upside: 20% to $415
• Skyworks Solutions (SWKS) – Down 21% year-to-date; Potential upside: 34% to $120.
• VeriSign (VRSN) – Down 6% year-to-date; Potential upside: 18% to $230
• Five Below (FIVE) – Down 50% year-to-date; Potential upside: 30% to $140
• Gentex Corp. (GNTX) – Down 11% year-to-date; Potential upside: 25% to $28
• Arrowhead Pharmaceuticals (ARWR) – Down 36% year-to-date; Potential upside: 40% to $27.50
• EnerSys (ENS) – Down 8% year-to-date; Potential upside: 20% to $112
• Allegro MicroSystems (ALGM) – Down 31% year-to-date; Potential upside: 60% to $33
• A-Mark Precious Metals (AMRK) – Down 24% year-to-date; Potential upside: 32% to $33
• Lattice Semiconductor (LSCC) – Down 16% year-to-date; Potential upside: 45% to $82
• Power Integrations (POWI) – Down 26% year-to-date; Potential upside: 31% to $80
• Synaptics Inc. (SYNA) – Down 34% year-to-date; Potential upside: 30% to $98
• Vishay Intertechnology (VSH) – Down 29% year-to-date; Potential upside: 44% to $25
• Cracker Barrel Old Country (CBRL) – Down 32% year-to-date; Potential upside: 35% to $80
• Worthington Enterprises (WOR) – Down 27% year-to-date; Potential upside: 23% to $51
• Azenta Inc. (AZTA) – Down 24% year-to-date; Potential upside: 42% to $70
• Cytek Biosciences (CTKB) – Down 46% year-to-date; Potential upside: 70% to $13.50
• QuidelOrtho Corp. (QDEL) – Down 32% year-to-date; Potential upside: 35% to $66.50
• Schrodinger (SDGR) – Down 46% year-to-date; Potential upside: 52% to $29
• Titan International (TWI) – Down 52% to year-to-date; Potential upside: 56% to $11
• Cohu Inc. (COHU) – Down 28% to year-to-date; Potential upside: 42% to $36.50
• Diodes Inc. (DIOD) – Down 22% to year-to-date; Potential upside: 38% to $85