Recent market volatility has created potentially attractive opportunities for investors willing to look past near-term turbulence. CNBC Pro screened the S&P 500 for stocks offering the highest prospective risk-adjusted returns, based on Wall Street analysts’ price targets and options-implied volatility expectations over the next 12 months.
The resulting list features technology heavyweights such as Nvidia and Broadcom alongside names like Boeing and T-Mobile, plus lesser-known companies that could deliver substantial upside if analyst forecasts hold true. A distinct contrarian theme runs through the screen: many of these stocks have declined over the past month even as analysts maintained bullish price targets.
Inspired partly by a Goldman Sachs strategy, the screen compares the potential excess return of a stock’s consensus price target (relative to the risk-free rate) against its 12-month implied volatility. A higher ratio indicates greater potential upside per unit of risk.
Wynn Resorts tops the ranking. Analysts project the casino operator’s shares could climb roughly 70% to hit the consensus 12-month target, despite a near 14% decline over the past month. Sentiment remains broadly positive, with all 25 analysts covering the stock holding positive ratings, according to FactSet.
T-Mobile also ranks near the top. Shares have dropped nearly 16% over the past month on concerns regarding potential competition from Starlink, SpaceX’s satellite internet division. However, Wall Street’s consensus price target has barely budged, falling only about 1%. Analysts see approximately 54% upside from current levels, aided by the stock’s relatively modest implied volatility.
Micron Technology stands out as well, with analysts forecasting nearly 70% upside. The memory-chip maker has seen volatile trading as investors balance AI-driven growth prospects against fears of a tech bubble.
Nvidia is a notable exception on the list, having gained about 5% over the past month while its consensus price target remained essentially flat. Analysts still see over 40% implied upside, with more than 90% maintaining positive ratings on the Jensen Huang-led chipmaker.
Other technology names on the screen include Broadcom, Oracle, Western Digital, and AppLovin. Western Digital boasts one of the highest potential returns—roughly 80% upside—though elevated implied volatility makes it one of the riskier propositions by this measure.
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