In 2024, the major U.S. stock indices including the Nasdaq Composite ($NASX), S&P 500 Index ($SPX), and the Dow Jones Industrial Average ($DOWI) posted impressive double-digit gains. But not every index member was so lucky. 

Fortunately for those hard-hit companies, analysts think some of these 2024 losers are due for a bounce of over 30% this year. These potential turnaround candidates have debt-equity ratios below 50% and consistent earnings growth with a minimum 5% annual increase over five years.

Exploration and production company ConocoPhillips (COP), biotech innovator Regeneron Pharmaceuticals (REGN), and steel producer Nucor Corporation (NUE) fit the bill. Despite double-digit declines in 2024, analysts foresee strong upside potential for the stocks.

To that end, for investors eyeing solid gains, these Wall Street-approved stocks could be the ultimate picks for the new year.

S&P 500 Stock #1: ConocoPhillips

Houston-based ConocoPhillips (COP), founded in 1875, is a global energy leader. With a $115.1 billion market cap, it focuses on extracting oil (CLG25) and natural gas (NGG25) from low-cost, high-quality assets worldwide.

Operating across North America, Asia, Australia, and Europe, the company thrives in areas like the Permian Basin and Eagle Ford while maintaining a foothold in Canada’s oil sands and global LNG projects. By prioritizing efficiency and scale, ConocoPhillips secures its position as a trusted leader in meeting global energy demands.

COP stock endured a turbulent 2024, shedding 12% over the past 52 weeks and plunging 10.7% over the past three months despite a 6.4% spike post-Q3 earnings on Oct. 31.

Just last month, it scraped a 52-week low at $94.23, seemingly stuck in the doldrums. But recent sparks suggest a turnaround, with COP jumping over 5.5% in the past five trading days as whispers of soaring natural gas demand, driven by biting winter forecasts, breathe fresh life into the stock.

Priced at 5.77 times forward EV/EBITDA and 5.92 times cash flow, COP looks reasonably valued at current levels.

Last month, ConocoPhillips rewarded shareholders with a $0.78 per share dividend, boasting a forward yield of 3.52%. With bold moves like its $22.5 billion Marathon Oil acquisition, COP is targeting elite status among dividend growers.

Beyond payouts, the company’s share buybacks are equally impressive, retiring 14% of shares since 2021. With $20 billion earmarked for repurchases, COP’s strategy blends rising dividends with shrinking share counts for lasting value.

ConocoPhillips delivered solid third-quarter earnings results on Oct. 31, reporting $13.6 billion in revenue and generating EPS of $1.78, which surpassed bottom-line estimates by 6%.

President-elect Donald Trump could spark an oil and gas resurgence and in turn could accelerate Conoco’s growth, particularly with Arctic-focused initiatives like the Willow project and infrastructure investments. With strategic positioning and expanding Alaskan ambitions, ConocoPhillips is primed to capitalize on favorable policy shifts and resource development opportunities.

Q4 production is forecast to be between 1.99 and 2.03 MMBOED, and full-year production is projected to be between 1.94 and 1.95 MMBOED, up from earlier guidance. Additionally, the company plans nearly $2 billion in Q4 buybacks and remains on track to return $9 billion to shareholders in 2024, including enhanced dividends.

Analysts expect the company’s profit to be $7.79 per share in fiscal 2024 and then jump by 2.7% to $8 per share in fiscal 2025.

ConocoPhillips had a rough ride last year, ranking among the market’s underperformers. But analysts see brighter days ahead. Jefferies recently crowned COP its top pick for the coming year, citing its lag behind U.S. peers and potential to benefit from pro-energy policy shifts. The brokerage firm has a "Buy" rating on COP, setting a target of $146, which implies upside of 46%.

Analyst Lloyd Byrne highlighted ConocoPhillips' impressive oil-weighted asset duration and robust balance sheet, which offer both growth potential and downside protection. With a sustainable free cash flow yield and key growth projects nearing a capex roll-off in 2026, COP is poised for a strong rebound. Investors and management are expected to refocus on its undervalued potential, making the Texas-based energy giant a standout in the exploration and production industry heading into 2025.

Wall Street is highly bullish on COP, viewing the stock as a “Strong Buy.” Among the 27 analysts covering the stock, 22 recommend a “Strong Buy,” two advise a “Moderate Buy,” and the remaining three analysts play it safe with a “Hold.”

The mean price target of $134 suggests 34% upside potential from the current levels. The Street-high target of $165 indicates the stock could rally as much as 65%.

S&P 500 Stock #2: Regeneron Pharmaceuticals

New York-based Regeneron Pharmaceuticals, Inc. (REGN) is a biotech pioneer turning cutting-edge science into transformative treatments. Known for its in-house innovation, Regeneron’s medicines address challenges from eye diseases and cancer to rare conditions and neurological disorders. 

Valued at a market cap of roughly $78.9 billion, the biotech powerhouse has been navigating a tough 2024 on Wall Street. Over the past 52 weeks, its stock has slipped 20%, with a sharper 27% plunge in the last three months alone. Hitting a low of $693 just last month, the stock’s performance reflects recent headwinds, but for seasoned investors, such dips often signal opportunities, considering Regeneron's strong track record of innovation and a promising pipeline.

REGN trades at a compelling 15.93x forward adjusted earnings, undercutting both the healthcare sector median and its own historical average .

On Oct. 31, Regeneron delivered Q3 earnings results, exceeding expectations across the board. The biotech giant raked in $3.7 billion in revenue, up nearly 11% year-over-year, showcasing solid growth. Adjusted EPS hit $12.46, an 8% increase from last year's quarter, beating estimates by a solid 6.5% margin.

Despite challenges with Eylea, its top drug, facing competition from Roche’s (RHHBY) Vabysmo and a legal battle with Amgen (AMGN) over patent rights, Regeneron has kept its momentum. Eylea saw a 21% dip in sales year-over-year, but it was overshadowed by strength from Eylea HD, Dupixent, and Libtayo.

Eylea HD, launched in August 2023, made waves with $392 million in U.S. sales during Q3, reflecting a smooth patient transition. Combined U.S. sales of Eylea and Eylea HD hit $1.5 billion, up 3% from the previous year. Regeneron’s oncology therapy, Libtayo, also contributed solidly to the growth.

To reinforce shareholder value, Regeneron repurchased $738 million of its stock during the quarter, leaving $2.9 billion under its share buyback program. This strategic capital deployment positions the company well for continued growth, proving Regeneron’s resilience and ability to thrive, even in a competitive landscape.

Looking ahead to fiscal 2024, Regeneron is tightening its belt. Management slightly upped R&D expenses, expecting them to fall between $5.055 billion and $5.145 billion, while net product sales are expected to maintain a strong non-GAAP gross margin of 89%. At the same time, capital expenditures were trimmed to a range of $700 million to $740 million, signaling a sharper focus on operational efficiency.

Meanwhile, Wall Street analysts are forecasting steady, if modest, growth for Regeneron’s bottom line. Fiscal 2024 EPS is projected to rise marginally year-over-year to $37.95, with a slight bump to $38.16 in fiscal 2025, showcasing solid and consistent performance in the years to come.

Despite a double-digit pullback in shares over the past year, analysts are still backing this biotech powerhouse. Looking ahead, the company’s pipeline is brimming with potential. It recently announced strong Phase 2 results for two monoclonal antibodies targeting thrombosis - essentially blood clots blocking circulation. These treatments are now moving to Phase 3, set to kick off in early 2025, potentially paving the way for more positive news.

Wall Street is confident about the biotech stock, having a consensus “Moderate Buy” rating overall. Among the 26 analysts covering the stock, 18 are highly bullish with a “Strong Buy,” one advises a “Moderate Buy,” six suggest a “Hold,” and one has a “Moderate Sell.”

The average analyst price target of $1,084.76 indicates potential upside of 51.4% from the current price levels. However, the Street-high target of $1,300 suggests that the stock could surge as much as 81.5%.

S&P 500 Stock #3: Nucor Corporation

Nucor Corporation (NUE), founded in 1905, has forged its legacy as a steel industry titan and North America's largest recycler. Headquartered in North Carolina, it produces a vast array of steel products with operating facilities in the U.S., Canada, and Mexico.

Staying ahead, Nucor’s 2024 partnership with Mercedes-Benz to supply low-carbon steel underscores its innovation and sustainability focus, paving the way for growth in the automotive sector. A pioneer in green steel, Nucor blends tradition with a future-driven vision. Its market cap currently stands at $27.1 billion.

Last year has been tough on NUE, tumbling 29.3% over the past 52 weeks. Even though the stock slid 20.4% over the past three months alone, hitting its 52-week low of $112.25 on Jan. 3, yesterday’s trading session brought a spark of optimism - a 4.5% surge suggesting NUE might be finding its footing.

NUE stock is attractively priced at 14 times forward adjusted earnings and 0.89 times sales, offering a solid value compared to the materials sector peers, making it a standout for value-seeking investors.

Nucor’s dividend payment record is a testament to its strength and commitment to shareholders. Since 1973, this steel giant has raised its dividend every year, earning the coveted Dividend King status. Even in the cyclical steel industry, Nucor's success stands out, reflecting its solid business model and investor dedication.

On Dec. 11, the company announced a 1.9% increase in its quarterly dividend to $0.55 per share, marking its 207th consecutive quarterly payout. The company offers an annualized $2.20 per share, translating to a yield of 1.8%. Plus, with a low payout ratio of 19.68%, Nucor balances rewarding investors with maintaining its focus on growth, ensuring the next chapter in its legacy.

Nucor’s Q3 earnings release on Oct. 21 showed resilience, surpassing analysts’ expectations despite some headwinds. The company posted adjusted net earnings of $353 million, or $1.49 per share, beating the consensus of $1.40. While total net sales dropped 15.2% annually to $7.44 billion, they still exceeded projections. Nucor shipped 6.2 million tons of steel, with 19% going to internal customers.

By the end of the quarter, Nucor had $4.3 billion in cash and cash equivalents and returned $2.29 billion to shareholders through dividends and stock buybacks during the first nine months of 2024. During Q3, the company repurchased about 2.5 million shares at an average price of $156.07.

Nucor’s Q4 earnings report is set to show a dip. The company projects Q4 EPS between $0.55 and $0.65, driven mainly by weaker earnings in the steel mills and products segments. Lower volumes and average selling prices are to blame, but there is a silver lining: the raw materials segment is expected to see an uptick. While steel product earnings cool off, Nucor’s raw materials division is poised to bring in a boost, signaling growth potential despite the tough quarter.

Analysts tracking the company expect its profit to be $8.28 per share in fiscal 2024 and then jump by 5.3% to $8.72 per share in fiscal 2025.

Goldman Sachs sees a promising future for Nucor despite last year’s dip. With trade policies potentially shifting in favor of U.S. steel under a second Trump term, Nucor is positioned for a comeback. Earlier last month, the brokerage firm initiated coverage with a "Buy" rating on NUE stock, highlighting Nucor’s strength to capitalize on rising steel demand, especially in sectors like data centers. With a strategic focus and strong industry positioning, Nucor is set to turn the page on its recent decline and reignite growth this year.

NUE stock has a consensus “Moderate Buy” rating overall. Among the 13 analysts covering the stock, seven are highly bullish with a “Strong Buy,” one advises a “Moderate Buy,” and five suggest a “Hold.”

The average analyst price target of $162 indicates potential upside of 34.3% from the current price levels. However, the Street-high target of $190 suggests that the stock could surge as much as 57.5%.

On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.