2 “Perfect 10” Stocks to Consider as Top Banks Warn of S&P 500 (SPX) ‘Bear Market’ Risks
Top banks such as JPMorgan (JPM), Bank of America (BAC), and Citigroup (C) have all slashed their S&P 500 targets, rattled by Trump’s recent tariff moves. The average year-end target for the S&P 500 Index (SPX) now hovers near 6,012, down from 6,539. JPMorgan expects the index to fall further to 5,200, while Bank of America projects a level of 5,600. Meanwhile, Citigroup expects the index to close at 5,800 and warned that the decline in U.S. equities could mark the “first bear market” driven by tariff-related concerns.
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With just a modest 2% gain now expected for the S&P 500 this year, the outlook has turned from bullish to cautious. In this scenario, investors are seeking out steady, resilient plays. Using TipRanks’ Stock Screener, we have identified two “Strong Buy” stocks that boast the highest “Perfect 10” Smart Score, indicating strong outperformance potential. Additionally, these stocks offer dividend yields exceeding 2%, making them particularly appealing in times of uncertainty.
2 High-Scoring Stocks with Upside Potential
Expand Energy
Expand Energy (EXE), formerly known as Chesapeake Energy, has solidified its position as the largest independent natural gas producer in the U.S. Following its merger with Southwestern Energy in late 2024, the company has expanded its operational footprint across key basins, including the Marcellus and Haynesville shales.
In Q4 2024, Expand Energy reported adjusted earnings per share of $0.55, surpassing analyst expectations, and generated $382 million in operating cash flow. Notably, the company is expected to release its Q1 2025 earnings on May 16. Looking ahead, the company projects a production increase to approximately 7.1 billion cubic feet equivalent per day in 2025. The stock has gained about 8% year-to-date.
Is EXE Stock a Buy or a Sell?
EXE stock carries a dividend yield of 2.16% and has a Strong Buy consensus rating based on 18 Buys and three Holds assigned in the last three months. At $121.50, the average Expand Energy price target implies a 14.12% upside potential.
CVS Health
CVS Health (CVS) has a large network of pharmacies and healthcare services, with most of its operations focused domestically. This limits its reliance on global supply chains and shields it from trade-related disruptions.
Moreover, CVS emerged as the top performer in the S&P 500 for the first quarter of 2025, achieving a 50% increase in share price since the beginning of the year. This significant gain was largely driven by better-than-expected revenue and adjusted earnings per share reported in the company’s fourth-quarter results in February. Notably, the company is expected to release its Q1 2025 earnings on May 1.
Is CVS Stock a Good Stock to Buy?
CVS stock carries a dividend yield of 3.95% and has a Strong Buy consensus rating based on 17 Buys and three Holds assigned in the last three months. At $75.53, the average CVS Health price target implies a 12.25% upside potential. The stock has gained about 52% year-to-date.
Bottom Line
With the S&P 500’s growth outlook dimming due to everyday tariff shocks and cautious forecasts from top banks, investors could consider stocks with strong fundamentals and “Strong Buy” ratings. Both Expand Energy and CVS Health check are dividend-paying stocks and tick those boxes with “Perfect 10” Smart Scores and robust earnings.
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