Despite a partial pullback in U.S. stocks this month, risk appetite for high-growth tech stocks remains strong. The tech-heavy Nasdaq Composite continues to lead the three major indices, extending last year's momentum with a year-to-date gain exceeding 20%. The S&P 500 has risen nearly 16% this year, while the Dow Jones Industrial Average, comprising 30 components, has climbed 11.5%. As 2026 approaches, analysts have used CNBC Pro's stock screener to identify companies potentially overlooked by the market.
Analysts specifically filtered S&P 500 constituents meeting the following criteria: outperforming the broader index year-to-date, with forward P/E ratios now below the S&P 500 average—suggesting they remain undervalued and present buying opportunities. The final screening selected stocks with: forward P/E below 20x (lower than the S&P 500), year-to-date gains of at least 20%, and Wall Street's consensus "buy" ratings.
Among the results, CVS Health (CVS.N) has surged over 78% this year, yet its forward P/E stands at just ~11x. Analysts surveyed by LSEG project an average target price of $90.66, implying over 10% upside potential. Of the 19 analysts covering the healthcare giant, six rate it "strong buy," while 18 recommend "buy." CVS posted better-than-expected Q3 earnings and revenue in late October, raising its adjusted profit outlook on improved insurance operations. However, management cautioned that its Caremark pharmacy benefits segment may see "modest growth deceleration" amid upcoming "new drug pricing contract transitions."
Chipmaker Micron Technology (MU.O) is another seemingly undervalued pick, with a forward P/E of 12x—despite its ~174% year-to-date rally. Analysts tracked by LSEG maintain an average "buy" rating. Morgan Stanley’s Joseph Moore, a bull on the stock, recently reaffirmed his "overweight" rating and top-pick designation. He noted that DRAM supply shortages should bolster Micron’s profitability, writing in a Nov. 13 report: "We believe this will drive us firmly into uncharted territory from an earnings perspective, and the stock hasn’t fully priced in the coming upside."
Other standout names with room to run include healthcare leaders AbbVie (ABBV.N) and Medtronic (MDT.N), gold miner Newmont Mining (NEM.N), and power generator Vistra Energy (VST.N).
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