JPMorgan highlighted some stocks that could lead the way higher if a near-term market bounce materializes. The S & P 500 briefly dipped into bear market territory on Monday, as investors worried a slew of tariffs unveiled by President Donald Trump could tip the economy into a recession. The benchmark tried to rebound on Tuesday, but the comeback fizzled in afternoon trading. That said, “The odds of a tactical rebound have increased following the sharp correction, particularly if there are softer trade headlines, deadline extensions, or signs of negotiation,” strategists at JPMorgan wrote. The bank screened for names that could outperform in this event. Specifically, it looked for stocks that met the following criteria: Positive earnings revision breadth: A majority of analysts have upwardly revised their earnings expectations on the names Are down more than 20% from their year-to-date highs Are primed for big swings, with their two-month implied volatility exceeding the three-year 70th percentile One name on the list was Eli Lilly . The stock was 20.6% below its year-to-date high when the bank ran the screen. Its two-month implied volatility of the stock is also 49%, meaning the options market is signaling shares could move by that much during that period. That implied move ranks in the 99th percentile over a three-year period. JPMorgan has an overweight rating on it. Its price target of $1,100 implies upside of more than 51% from Monday’s close. JPMorgan isn’t the only bank that is bullish on Eli Lilly. On Tuesday, Goldman Sachs analyst Asad Haider assumed coverage with a buy rating, calling it a “secular growth leader for uncertain times.” “At current levels, we see a compelling entry point into the sector’s premier topline grower,” Haider wrote. Royal Caribbean Cruises was another name on the list. Shares are down more than 30% from their 2025 high and the two-month implied volatility points to a 48% swing in either direction. The cruise operator stock has tumbled nearly 20% this year, weighed down by fears of an economic downturn squeezing U.S. consumers. JPMorgan rates the stock as overweight and sees it rallying more than 60%. Loop Capital is also bullish on shares, with analyst Laura Champine upgrading them to buy from hold last month. “We’re also taking advantage of a pull back in the stock, as it has traded nearly 15% lower since our initiation last month,” the analyst wrote. “We are favorably disposed to the entire cruise industry, and RCL has been a leader in financial performance since Covid.” JPMorgan also pointed to Palo Alto Networks as a potential tactical bounce leader. The bank’s data shows 100% of analysts have upwardly revised earnings estimates on the stock, which is down more than 25% from its 2025 peak. The options market is also signaling a 44.7% move over the next two months — in either direction. JPMorgan has an overweight rating on the stock, calling for more than 40% upside ahead. Dell Technologies and PayPal also made the cut. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
