- Wall Street sees opportunities abound amid the stock market sell-off.
- 44 publicly traded companies were upgraded to an equivalent rating of “Buy” or “Neutral” on Tuesday.”
- Analysts see buying opportunities in Apple, Eli Lilly, and Netflix amid the volatility.
The stock market briefly boomed on Tuesday, with the S&P 500 surging as much as 4% before turning slightly negative.
A swift 11% decline in the benchmark index since President Trump’s “Liberation Day” last week was enough for investors to hold their nose and buy stocks, on the hunt for deals.
Some of Tuesday’s best-performing stocks were found in the financials, technology, utilities, and industrials sectors, before the gains evaporated.
According to data from Bank of America, all cohorts of its client groups, including institutional clients, corporate clients, and private clients, bought the dip in stocks last week.
“Clients were net buyers of $8.0B of US equities, the fourth-largest weekly inflow in our data history since ’08,” Bank of America said in a note on Tuesday.
Analysts see opportunities
Wall Street analysts were quick to pounce on the downside volatility, with many research desks advocating for clients to take advantage of the decline in valuations to go bargain hunting.
Across Wall Street, 44 publicly traded companies were upgraded to an equivalent rating of "Buy" or "Neutral" on Tuesday, and another 22 companies were initiated or resumed coverage with a "Buy" rating, according to data from Briefing.com.
Here's where Wall Street is seeing opportunity.
Apple looks attractive after steep plunge
According to analysts at Bank of America, shares of Apple look appealing as its valuation took a hit amid the tariff-related decline.
The stock is down 31% from its 52-week high.
"The pullback presents a particularly enhanced buying opportunity for investors to own a high-quality name," analysts at the bank said, adding that the risk/reward profile of the stock typically "skews positive" when its forward price-to-earnings multiple drops below 25x.
It currently sits at about 22x.
Analysts are encouraged by Apple's stable cash flows and earnings resiliency and view the company as a potential beneficiary of AI adoption trends.
The bank rates Apple at a "Buy" with a $250 price target.
GLP-1 weight-loss drugs
Analysts at Goldman Sachs believe the 21% decline in Eli Lilly stock since early March is a great buying opportunity.
"At current levels, we see a compelling entry point into the sector's premier topline grower," the bank said.
The bank said Eli Lilly's manufacturing capabilities, early-mover advantage in the GLP-1 weight loss space, and attractive drug pipeline make it a good name to buy for the long term.
Goldman said its GLP-1 drugs Zepbound and Mounjaro are poised to continue dominating the weight-loss and diabetes drug market in particular.
"We believe LLY will maintain its pole position as the leader in a market set to triple in size from~$28bn today to ~$95bn by 2030," Goldman Sachs said.
The bank rated Eli Lilly with a "Buy" rating and an $888 price target.
Netflix is a "Top Pick"
Morgan Stanley called Netflix a "Top Pick" in the communication services sector following its 17% decline since mid-February.
Analysts at the firm were encouraged by Netflix's strong free cash flow and said it has strong operating leverage thanks to the growing streaming industry.
"We continue to see Netflix as a FCF generative business, with long-term FCF margins determined by the ability to drive higher scale on fixed operating costs," Morgan Stanley said.
The firm said that Netflix's advertising tier should nearly double its revenue in 2025 to $1.3 billion, from about $700 million in 2024.
Morgan Stanley rates Netflix at "Overweight" with a $1,150 price target.