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Half Of S&P 500 Stocks Still Below 200-Day Average, Ignoring Covid-Like Rally: 10 Bargain Plays For Latecomer Bulls

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Late to the bull party? Nearly half of S&P 500 stocks continue to show no significant trend breakthroughs to date.

What Happened: SPDR S&P 500 ETF Trust (NYSE:SPY) gaining over 10% since Oct. 27. This marks the index’s strongest 17-day rally since November 2020, a surge initially fueled by the Covid-19 vaccine breakthrough.

The year-to-date return for the broader market now stands at 18%, nearly doubling the 30-year average annual return of 9.862%. However, this bullish sentiment isn’t uniformly reflected across the board.

Surprisingly, only about 52% of S&P 500 components are currently trading above their 200-day moving average, often viewed as a key technical determinant of a stock’s long-term trend.

Rewind to November 2020, a comparable rally saw 90% of S&P 500 stocks trading above their 200-day moving average.

Chart: S&P 500 Had Its Best 17-Day Rally Since November 2020

Top 10 S&P 500 Stocks With The Widest Discounts

Only about 52% of S&P 500 components are currently trading above their 200-day moving average, despite the robust rally of the past weeks.

Some stocks — EPAM Systems Inc. (NYSE:EPAM), Citigroup Inc. (NYSE:C), Quest Diagnostic Incorporated (NYSE:DGX), and Agilent Technologies Inc. (NYSE:A) — are hovering near these levels. Others are lagging considerably behind.

The table below reveals the 10 S&P 500 stocks exhibiting the largest price discrepancies when compared to their 200-day average levels.

Name Last Price % Distance vs. (200-Day Avg.)
SolarEdge Technologies, Inc. (NASDAQ:SEDG) 78.87 -64.91%
Illumina, Inc. (NASDAQ:ILMN) 95.72 -46.74%
FMC Corporation (NYSE:FMC) 53.11 -44.98%
Enphase Energy, Inc. (NASDAQ:ENPH) 98.16 -37.97%
Paycom Software, Inc. (NYSE:PAYC) 178.38 -37.31%
The Estée Lauder Companies Inc. (NYSE:EL) 120.10 -36.44%
Albemarle Corporation (NYSE:ALB) 125.97 -36.37%
Moderna, Inc. (NASDAQ:MRNA) 77.42 -35.96%
Align Technology, Inc. (NASDAQ:ALGN) 215.07 -30.99%
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) 20.87 -28.27%

Risk of Value Traps?

A stock significantly below its 200-day moving average may indicate either a potential bargain or a fundamental issue with the company.

A value trap occurs when a stock appears to be cheap but is actually fairly priced due to declining business prospects.

Therefore, it’s crucial to differentiate between a stock…

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