Stocks to Watch: JPMorgan’s Top Rebound Picks – LLY, RCL, PANW, DELL, PYPL

Market volatility, partly fueled by ongoing trade discussions and tariff policies under President Trump, presents both challenges and potential entry points for investors. Following recent market corrections, attention is shifting towards identifying stocks that could potentially lead a recovery, particularly if trade tensions show signs of easing.

JPMorgan Identifies Potential Rebound Candidates

Financial analysts at JPMorgan have suggested that the stock market might be approaching conditions suitable for a technical rebound. The likelihood of such a recovery hinges on positive developments in trade negotiations or adjustments to tariff implementation timelines associated with President Donald Trump’s administration. The firm has pinpointed several stocks characterized by high implied volatility, recent positive earnings revisions, and notable declines from their yearly highs. These attributes suggest they could be well-positioned to lead if the market experiences an upswing.

Spotlight on Key Sectors: Pharmaceuticals and Leisure

Among the companies highlighted is Eli Lilly (LLY). Despite a significant pullback from its recent peak, the pharmaceutical company maintains strong support from analysts. Current projections indicate a potential upside of approximately 51% towards a $1,100 price target. The stock’s considerable implied volatility further points to its potential responsiveness in a shifting market. This optimistic perspective is shared by analysts at Goldman Sachs, who regard Eli Lilly as a resilient growth leader, suggesting that current trading levels might represent an attractive entry point into the pharmaceutical sector.

In the leisure sector, Royal Caribbean (RCL) has seen its valuation decrease by over 30% from its highest point. Analysis from JPMorgan suggests the cruise line operator possesses a potential rebound capacity exceeding 60%. Adding to this positive outlook, Loop Capital recently issued an upgrade for RCL shares to a “buy” rating, citing the company’s robust financial leadership demonstrated since navigating the pandemic period.

Technology and Fintech Opportunities

The technology sector also features prominently in JPMorgan’s assessment. Cybersecurity specialist Palo Alto Networks (PANW) is noted for having declined more than 25% recently, yet it benefits from unanimously positive earnings revisions from analysts. Forecasts point towards a substantial potential upside exceeding 40%. Additionally, technology giant Dell Technologies (DELL) and the financial technology firm PayPal (PYPL) meet the technical and fundamental criteria outlined by the bank. These stocks are considered potential tactical opportunities for investors positioning for a partial market recovery.

Market Outlook and Caution

While identifying these potential market leaders, JPMorgan emphasizes that overall market volatility is expected to continue. Nevertheless, the firm believes there is potential for notable upward trends if news concerning trade tariffs becomes more constructive in the immediate future.

Summary of Potential Rebound Leaders

Company	Ticker	Key Points Noted by JPMorgan
Eli Lilly	LLY	Substantial drop from peak, strong analyst support, potential ~51% upside.
Royal Caribbean	RCL	Decline over 30%, potential rebound >60%, recent Loop Capital upgrade.
Palo Alto Networks	PANW	Drop exceeding 25%, positive earnings revisions, potential >40% upside.
Dell Technologies	DELL	Meets technical & fundamental criteria for tactical positioning.
PayPal	PYPL	Meets technical & fundamental criteria for tactical positioning.