Not every stock has jumped out to an early gain in 2023. Some are off to a rough start this year — but could yet see big gains ahead. The major averages have rallied to start the year as investors bet the Federal Reserve will pause its rate tightening campaign this spring. Meanwhile, a surge of interest in artificial intelligence stocks added to Wall Street’s animal spirits. The S & P 500 advanced in four weeks out of six to start the year. Against that backdrop, investors could take another look at some stocks that have underperformed this year. These stocks are lagging the S & P 500 in 2023, but are favored by analysts who expect a comeback, according to a CNBC Pro screen. These stocks have buy ratings from more than 75% of analysts covering them, and price targets for the next 12 months that are at least 10% above prevailing prices. Here are the 7 underperforming stocks that popped up on CNBC’s screen. Halliburton is due for a comeback, based on the analysts’ ratings and price targets. The energy stock declined slightly to start 2023 after surging more than 72% last year. Despite the underperformance, more than 79% of analysts have buy ratings on the stock. They expect shares will jump another 26% in the next 12 months, according to consensus estimates from FactSet. In December, JPMorgan named Halliburton one of its top 2023 picks, saying the overweight-rated energy stock will benefit from “strong upstream spending growth in both International and NAM markets, the potential shifts to shareholder friendly capital returns frameworks in coming quarters, and strong execution in the field.” Constellation Energy also surfaced on CNBC’s screen. The utility, spun off from Exelon last year is little changed in 2023, greatly underperforming the S & P 500’s more than 7% advance. Regardless, the power generator stock is beloved by more than 78% of analysts. They expect shares can rally 16%. Last week, UBS named Constellation Energy its top Inflation Reduction Act beneficiary . “We are buyers of CEG, which we believe is a significant beneficiary of the IRA, and this is not reflected in the current stock price,” analyst Ross Fowler wrote. Meanwhile, T-Mobile is also picked to see big gains from current prices. The Wall Street favorite — with buy ratings from 78% of analysts — has 21% upside to its price target, according to FactSet consensus estimates. In January, Citi strategist Scott Chronert named T-Mobile to his 2023 large-cap stock picks , saying the telecommunications stock is a “defensive add” with “strong operating momentum and opportunity to realize merger-related synergies.” Other stocks on CNBC’s list include AES and Targa Resources.
