3 Bargain Stocks Positioned for Gains After Missing 2024's Rally

Market Overview - The S&P 500 has provided a total return of 20.6% in 2024, significantly outperforming the 30-year average of 11.7% [1] - Over 300 S&P 500 stocks are underperforming the index, with top performers linked to AI and data centers [1] Lam Research - Lam Research (NASDAQ: LRCX) has only returned 4% in 2024, while the PHLX Semiconductor Index has returned nearly 24% [2] - Analysts project a 12-month stock price forecast of $141.28, indicating a 74.19% upside [3] - Revenue is expected to rise by 16% next year, with earnings per share growth projected at 18% [3] - Lam's forward price-to-earnings ratio is below the average for the U.S. technology sector, suggesting solid potential [4] Adobe - Adobe (NASDAQ: ADBE) has experienced a total return of nearly -16% in 2024 [5] - The 12-month stock price forecast is $606.40, implying a 19.92% upside [6] - Despite consistently beating analyst estimates, weak forward guidance has negatively impacted share price [6] - Adobe's operating margin is higher than 94% of U.S. tech companies, indicating strong profitability [6] Merck & Co. - Merck & Co. (NYSE: MRK) has provided a total return of just 3% in 2024, below the 12% median among its peer group [8] - The 12-month stock price forecast is $134.58, indicating a 22.18% upside [8] - Merck's forward P/E ratio is trading below the median of its peers, suggesting potential undervaluation [8] - Wall Street analysts see significant upside potential for Merck, with an average price target implying a 26% upside [9]